Tumut Property Market Update 2nd Half of 2021

In Q2 2021, Tumut recorded a median house price of $300,000, and a median vacant land price of $76,000. This represents annual (Q2 2020 – Q2 2021) median price growth of 14.5% for houses and a price softening of -5.0% for land. Between Q2 2020 – Q2 2021 total sales increased, by 19.0% for houses (to 69 sales) and significantly by 500.0% for vacant land (to 30 sales). Price growth combined with higher sales volumes suggest real returns in capital investment, signalling an ideal time for house owners to transact. High demand for vacant land is due to an absence in residential projects.

Average vendor discounts between Q2 2020 and Q2 2021 have tightened for houses, to -2.1%. Tumut market conditions offers unique opportunities, as sellers can now achieve final sale prices closer to their first list price, whilst buyers can still benefit from a discount.

In June 2021, house rental yields in Tumut were recorded at 4.3%. In the 12 months to Q2 2021, the median house rental price increased by 9.7% to reach $340 per week. That said average days on the market increased sharply by 47.4% (to 28 days). Despite an increase in the number of days to let, investors can remain confident in strong median rental prices.

3-bedroom houses have provided investors with +16.7% rental growth annually, with a median rent of $350 per week.

Also, in June 2021, Tumut recorded a vacancy rate of 0.7%, on par with the Snowy Valleys LGA (0.6%) and well below Sydney Metro (2.8%). Vacancy rates in Tumut have recorded historical low figures in the past 12 months and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 conditions. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Tumut.