PRD Tamworth Property Market Update 2nd Half 2023
In Q3 2023, Tamworth recorded a median house price of $529,000, and a median unit price of $375,000. This represents annual (Q3 2022 – Q3 2023) growth of 13.0% for houses and 17.5% for units. Sales volume between Q3 2022 – Q3 2023 declined by -26.0% (to 211 sales) for houses and increased by 23.8% for units (to 26 sales). An undersupply in houses creates a buffer against cash rate hikes, with the median price still increasing. The unit market is highly demanded, as the median price increased even with more sales. Tamworth is a highly resilient market, despite changing economic conditions.
Average vendor discounts between Q3 2022 and Q3 2023 have remained relatively stable, a -3.2% discount for houses and -3.7% for units. Market conditions in Tamworth continue to favour buyers, as vendors are willing to accept below the initial listing price. However, Q3 2023 average vendor discount was tighter than the past 3 quarters, thus buyers must act fast.
House rental yields in Tamworth was 4.2% in September 2023, much higher than Sydney Metro (2.9%). This was paired with a 7.5% increase in median house rental price in the 12 months to Q3 2023, to $430 per week, and an 8.9% increase in the number of houses rented (to 402 houses). The same pattern can be seen in the unit market, which suggests a highly demanded and undersupplied rental market, in good news for 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 1.4% in September 2023, which is on par Sydney Metro’s 1.3% average. Vacancy rates in Tamworth have increased slightly in the past 12 months, due to investors entering the market and capitalising on higher yields. That said, a 1.4% vacancy rate is still very low, thus quicker rental occupancy. This suggests a conducive and sustainable environment for investors, even if property sale prices have increased in the past 12 months to Q3 2023
