PRD Tamworth Property Market Update 1st Half 2024
In Q1 2024, Tamworth recorded a median house price of $536,250 and a median unit price of $335,000. This represents annual (Q1 2023 – Q1 2024) median price growth of 11.7% for houses and 4.7% for units. Total sales decreased during this time, by -6.0% for houses (to 237 sales) and by -27.3% for units (to 16 sales). Q1 2024 recorded the lowest number of sales in the past 24 months, confirming there is an undersupply, for both property types. This has created a buffer against higher interest rates, thus continuous price growth. This creates an ideal opportunity for owners who are looking to capitalise on their investment.
Average vendor discounts between Q1 2023 and Q1 2024 have tightened to a smaller discount of -4.1% for houses and -2.5% for units. Market conditions in Tamworth still favour buyers, with sellers accepting below the first listed price. That said the highest level of discount period has passed, indicating a potential shift towards a more balanced market, due to the undersupply of stock. Thus, buyers must act fast to benefit from current discounts.
House rental yields in Tamworth was 3.5% as of March 2024, slightly lower than the Tamworth LGA (4.5%) but higher than Sydney Metro (2.9%). Median house rental price increased by 7.1% in the past 12 months, at $450 per week, and the number of houses rented increased by 11.4% (to 391 houses). Average day on the market declined by -4.3%, to a historical low level of 22 days. The unit market shows the same trends. Combined, this suggests there is a high demand and competitive rental market in Tamworth, which is good news to investors.
2-bedroom houses have provided investors with +9.4% rental growth annually, achieving a median rent of $350 per week.
Tamworth recorded a vacancy rate of 1.6% in March 2024, well below Tamworth’s 2.3% average, but slightly higher than Sydney Metro’s 1.1%. Vacancy rates in Tamworth have increased over the past 12 months, due to investors entering the market. However, a 1.6% vacancy rate is still well below the Real Estate Institute of Australia’s healthy benchmark. This suggests quicker occupancy of rental properties, which is ideal and conducive for investors.
