Tamworth Property Factsheet 1st Half of 2019
In Q1 2019, Tamworth* recorded median prices of $350,000 (house) and $275,000 (unit). This represented annual (Q1 2018 – Q1 2019) price changes of -7.9% and 36.1% for houses and units respectively. The 2nd Half 2018 Tamworth Research Factsheet, by comparison, reported annual (Q3 2017 – Q3 2018) price movements of 10.3% for houses and -4.3% for units. This suggests that houses have recently become more affordable, whilst units have increased in value. Note that the recent large shift in median unit price is in part due to a small pool of sales data, with just 23 sales recorded in Q1 2019 across Tamworth*.
The wider Tamworth Local Government Area (LGA), by comparison, recorded a median house price of $332,500 and a median unit price of $247,500 for Q1 2019, with annual (Q1 2018 – Q1 2019) price change of -9.9% and 22.5% respectively. This suggests that Tamworth* is a premium market, given that buyers are willing to pay a higher price to gain access to it. Additionally, its short-term capital growth performance was also superior when compared to the wider LGA.
Tamworth* recorded a median house rental price of $350 per week in Q1 2019, and a median unit rental price of $278 per week. This represents annual (Q1 2018 – Q1 2019) median rental growth of 2.9% (house) and 11.0% (units). A large increase in rental activity was recorded in the unit market, up 113.0% over the same period. At the same time, house activity slowed by -7.8%. Rental yields of 5.0% (house) and 5.6% (unit) far exceeded those found within the Sydney Metro area, highlighting the real value of Tamworth* as an alternative investment location.An estimated $113.2M worth of projects are set to commence across Tamworth in the 1st half of 2019. The dominant focus is commercial development ($100.5M or 88.2%), with residential ($6.7M or 5.9%), infrastructure ($5.7M or 5.0%), as well as industrial ($293K or 0.3%) projects. A mix of project development types is key to Tamworth’s ongoing development. In particular, investment into commercial projects should result in the economic performance of Tamworth* improving, resulting in local jobs and wealth creation.