Tamworth Property Market Update 1st Half 2025
Tamworth is a vibrant regional city located in the New England Region of New South Wales. It is known as the country music capital of Australia and boasts a rich history in a beautiful rural atmosphere. With plenty of amenities like schools, parks and shopping areas, Tamworth is an ideal location for those looking to build a fulfilling lifestyle.
Property Trends
In Q1 2025, Tamworth recorded a median house price of $540,000 and a median unit price of $380,000. This marks annual growth of 15.6% for units, while house prices remained stable. Comparing Q1 2024 and Q1 2025, house sales decreased by -13.9% (to 230 sales) while unit sales increased (to 33 sales). There is an undersupplied house market and a highly demanded unit market, creating a buffer against higher interest rates and signalling a good time for owners to sell. Units experienced stronger price growth than houses, as buyers gravitated toward more affordable options and higher rental yields.
Project Development
Tamworth is expected to see approximately $676.3M in new projects commencing construction in 2025. The Calala Battery Energy Storage System ($518.0M) is a key commercial initiative likely to stimulate local job creation. New residential stock includes 21 dwellings and 87 lots, but this pipeline still falls short of demand—likely contributing to further undersupply and upward pressure on property prices.
Rental Market & Growth
House rental yield in Tamworth (postcode 2340) was 3.2% as of March 2025, lower than Tamworth LGA (4.5%) but higher than Sydney Metro (2.7%). Unit rental yield was 5.2%, outperforming both Tamworth LGA (5.1%) and Sydney Metro (4.4%). Median house rental price rose by 4.4% over the 12 months to Q1 2025, reaching $470 per week, while unit rent increased by 6.1% to $350 per week. Units remain an attractive opportunity for investors given their affordability and strong yield performance.
Vacancy Rates & Property Investment
Tamworth (postcode 2340) recorded a vacancy rate of 1.3% in March 2025, aligning with the Tamworth LGA average (1.4%) and Sydney Metro (1.3%). Vacancy rates have declined over the past 12 months, pointing to a tightening rental market. A 1.3% rate sits well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating strong demand and quicker occupancy—favourable conditions for property investors.
