Tumut PRD Market Update 1st Half of 2020
In Q4 2019, Tumut recorded a median house price of $295,000, and a median vacant land price of $131,000. This represents annual (Q4 2018 – Q4 2019) median price growth of 31.1% for houses and 27.8% for vacant land. Despite a recent slowdown in the number of sales, to 51 for houses and 7 for vacant land in Q4 2019, overall 2019 saw the highest number of recorded transactions in over 17 years in Tumut. Now is the time to transact, as there is less competition for buyers and proven capital growth for home owners.
Average vendor discounting between Q4 2018 and Q4 2019 slightly tightened for houses, to -5.3%, whilst vacant land saw a widening to -11.9%. Limited land sales data makes this data volatile, however, market conditions in Tumut continue to favour buyers overall, with sellers willing to negotiate below their first list price.
Over the past 12 months, house rental yields in the Tumut have slightly softened, sitting at 4.7% in December 2019. But this is still above that of Snowy Valley LGA (4.6%) and Sydney (2.7%). This suggests the house rental market remains in a healthy position, shown by the +4.3% increase in the number houses rented in the 12 months to Q4 2019 (73 rentals).
3 bedroom houses have provided investors with +7.1% rental growth annually, achieving a median rent of $300 per week.
Tumut recorded a healthy 2.2% vacancy rate in December 2019, which was below Sydney Metro’s 3.6% and the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This is good news for investors looking for an alternative investment location, as Tumut offers a more affordable entry price compared to Sydney Metro, while also boasting a lower vacancy rate.