Tamworth Property Market Update 2nd Half 2024
Tamworth in New South Wales is located approximately 420km north of Sydney on the western side of the Great Dividing Range. Tamworth is known for being the home of country music in Australia and is a very popular tourist destination. With plenty of amenities mixed with a country lifestyle, Tamworth is an ideal place to call home.
Property Trends
In Q3 2024, Tamworth, which in this report encapsulates data for the postcode 2340, recorded a median house price of $550,000, and a median unit price of $450,000. This represents annual (Q3 2023 – Q3 2024) price growth of 7.8% for houses and 25.0% for units. Comparing Q3 2023 and Q3 2024, sales increased by 3.0% for houses (to 276 sales in Q3 2024) and by 12.5% for units (to 27 sales in Q3 2024). The property market is in high demand, which creates a buffer against higher interest rates - hence price growth. With very little new stand-alone properties planned, further price growth is expected.
Project Development
Tamworth will see approximately $66.7M of new projects commencing construction in 2024. Most of these developments being commercial and infrastructure projects. It will also see the supply of 7 units and 211 lots. Although this will assist with some demand, it is not enough. With no new incoming ready-to-go supply planned, an undersupply is expected. This will continue to push house and unit prices in Tamworth higher.
Rental Market & Growth
House rental yields in Tamworth were 4.4% in September 2024, roughly on par with Tamworth's LGA (4.7%), but significantly higher than Sydney Metro's (2.8%). This was paired with a 6.8% increase in median house rent price in the past 12 months to Q3 2024, at $470 per week. The number of houses rented declined by -3.8% in the past 12 months, to 298 rentals in Q3 2024. The same pattern of higher rent can also be seen in the unit rental market. This suggests an attractive and more affordable rental market for investors (compared to Sydney Metro).
Vacancy Rates & Property Investment
Tamworth recorded a vacancy rate of 0.9% in September 2024, lower than the Tamworth LGA’s 1.3% average, and Sydney Metro’s 1.6% average. Vacancy rates in Tamworth have shown a declining pattern in the past 12 months, signalling a tighter rental market. Further, a 0.9% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes. This is a conducive environment for investors.
