Gundagai Property Market Update 2nd Half 2023
In the 2nd half of 2022, Gundagai recorded a median house price of $390,000. This is an annual (2H 2021 – 2H 2022) median price growth of 21.9%. That said, over the 6 months to 2H 2022 (1H 2022 – 2H 2022) median house price softened by -1.3%. This is a reflection of increasing interest rates, consumer uncertainty, and economic conditions. Median vacant land price in Gundagai was $197,500 in 2nd half of 2022, which interestingly reflected a 58.0% annual and 9.5% 6-monthly median price growth. There has been a steady growth in the number of vacant land sales, more so than house sales.
Average vendor discounts between 2H 2021 and 2H 2022 have tightened for houses, to -1.9%. Interestingly it has swung to a premium for vacant land, to 4.0%. The house market conditions in Gundagai are advantageous for both buyers and sellers, as buyers can benefit from a discount, but sellers can achieve a final price closer to their first list price. Vacant land market now favours sellers, as buyers need to offer above the first list price.
In December 2022, house rental yields in Gundagai¥ were recorded at 5.0%, well above Sydney Metro (2.7%). In the 12 months to 2H 2022, median house rental price increased 49.3% to reach $515 per week. In this time the number of houses rented declined by -77.7% and average days to let remained at 9 days. Overall, this represents an undersupplied rental market, and an attractive more affordable investment option for investors.
4+ bedroom houses have provided investors with +62.5% rental growth annually, achieving a median rent of $320 per week.
Gundagai recorded a vacancy rate of 0.7% in December 2022, which is below Sydney Metro’s 1.8% average. Vacancy rates in Gundagai have held relatively steady over the past 12 months, showing a sharp decline in late 2022 after a brief increase in mid-2022. Further, it is still at a lower rate than pre-COVID-19 levels. These key indicators create a conducive and sustainable environment for investors, especially given softer house prices in the past 6 months.
