Upper Hunter Property Market Update 1st Half 2025
Upper Hunter, New South Wales is a picturesque and vibrant area known for its rich landscapes and renowned wineries. The area is surrounded by rolling hills, charming small towns and national parks. With plenty of outdoor activities to enjoy, Upper Hunter is an ideal location for those looking for a rural escape.
Property Trends
In Q4 2024, Upper Hunter recorded a median house price of $576,000 and a median unit price of $430,000. This represents annual (Q4 2023 – Q4 2024) growth of 10.1% for houses and 8.9% for units. Comparing Q4 2023 and Q4 2024, sales declined by -5.4% (to 159 sales in Q4 2024) for houses and increased by 5.6% (to 19 sales in Q4 2024) for units. There is a highly demanded market, with houses currently undersupplied. This suggests that now is an ideal time for house-owners to capitalise on their investments. In 2025, there is a limited number of new stock coming onto the market, indicating potential price increases. Thus, now is an ideal time for first home buyers to act.
Project Development
Upper Hunter will see approximately $3.1B of new projects commencing in 2025. The Goulburn River Solar Farm ($880M) and Edderton Joint Venture Solar Farm & Battery Storage System ($850M) are two major commercial projects set to commence construction. With limited ready-to-go stock (9 units and 19 townhouses) coming onto the market, Upper Hunter will still experience an undersupply in housing. This will push house prices up further.
Rental Market & Growth
House rental yields in Upper Hunter were 4.3% as of December 2024, above that of Hunter Region (3.6%) and Sydney Metro (2.7%). Furthermore, the median house rental price increased by 3.8% in the past 12 months to Q4 2024, reaching $550 per week. During this time, the number of houses rented decreased by -8.6% (to 128 houses in Q4 2024), indicating an undersupply of houses for rent. This suggests a highly demanded house rental market in Upper Hunter, providing more opportunity for investors.
Vacancy Rates & Property Investment
Upper Hunter recorded a vacancy rate of 2.0% in December 2024, above the Hunter Region average of 1.2% but similar to Sydney Metro’s 2.1%. Vacancy rates have fluctuated significantly over the past 12 months, trending upwards to sit at their highest rate in the past 3 years, due to a higher number of investors entering the market. That said, a 2.0% vacancy rate remains below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties. This suggests there is still a conducive environment for investors in Upper Hunter.
