Tumut Property Market Update 1st Half 2024
In Q4 2023, Tumut recorded a median house price of $425,000, and a median vacant land price of $185,000. This represents annual (Q4 2022 – Q4 2023) growth of 7.1% for houses and a minor softening of -3.6% for vacant land. During this time total sales declined for houses, by -9.6% (to 47 sales), but grew by 36.4% for vacant land (to 15 sales). There is an undersupply of houses in Tumut, which created a buffer against cash rate hikes. The vacant land market is slightly saturated, however quite expected due to the increase in sales. It is currently more affordable than 12 months prior, in good news for buyers wishing to build.
Average vendor discounts between Q4 2022 and Q4 2023 have remained relatively stable, now at -3.4%. The peak for a discount seems to have passed, which occurred in mid-2023 (-5.8%). House market conditions in Tumut continue to favour buyers, however there is a slight shift to sellers. Thus, now is an ideal time to enter before there is less discount. Average vendor discount for vacant land have widened to -4.2%, creating an opportunity for buyers.
House rental yields in Tumut held steady in the past 12 months, to sit at 3.8% in December 2023, higher than Sydney Metro’s 2.8%. Median house rental price in Tumut has remained steady, at $400 per week, even with a 9.4% in the number of houses rented (to 35 rentals). A higher demand was not a surprise, as there has been a decrease in house sales. However, a steady rental price suggests a resilient rental market, in good news for investors.
2 bedroom houses have provided investors with +19.9% rental growth annually, achieving a median rent of $350 per week.
Tumut recorded a vacancy rate of 0.9% in December 2023, well below Sydney Metro’s 1.7% average. Vacancy rates in Tumut held steady over the past 12 months, with fluctuations due to investors entering/exiting the market and an undersupply in houses available for sale. A 0.9% vacancy rate is well below the Real Estate Institute of Australia’s benchmark of 3.0%, thus indicating a quicker occupancy of rentals. This suggests a positive environment for investors, despite an increase in median house sale prices in the past 12 months.
