Tumbarumba Property Market Update 2nd Half of 2020
In H1 2020, Tumbarumba recorded a median house price of $227,500, and a median vacant land price of $65,000. This represents annual (H1 2019 – H1 2020) median price growth of 24.3% for houses and of 41.3% for land. During H1 2019 – H1 2020 total sales slowed, by -40.0% for houses (to 15 sales) and by -81.3% for land (to just 3 sales). Slowing in sales activity is expected due to COVID-19, however median price growth recorded during this time suggest the strong value of properties in the area, and potentially pent-up demand.
Average vendor discounts between H1 2019 and H2 2020 have tightened for houses, to -5.2%. Market conditions in Tumbarumba offers an opportunity to both parties. Sellers can now achieve final sale prices closer to their first list asking price. That said with the discounts available, now is the time to enter the market.
Over the past 12 months, house rental yields in Tumbarumba increased strongly to reach 7.1% in June 2020. This suggests the house rental market is in a healthy position, particularly when combined with the -28.3% decline in the average days to let a house rental property, to 21 days in the 12 months to Q2 2020.
3 bedroom houses have provided investors with +19.2% rental growth annually, achieving a median rent of $295 per week.
Tumbarumba recorded an extremely low vacancy rate of 0.7% in June 2020. Vacancy rates in Tumbarumba have been on a declining trend since June 2017, which continued after December 2019 during COVID-19 conditions. This is quite the opposite to Sydney Metro, and is positioned well below Sydney Metro’s 3.8% average. This confirms there is a healthy rental demand in Tumbarumba, and a conducive environment for investors.