Tumut Property Market Update 2nd Half 2023
In Q3 2022, Tumut recorded a median house price of $397,000 and a median land price of $192,000. This is an annual (Q4 2021 – Q4 2022) median price growth of 12.5% for houses and 91.5% for land. That said, on a half yearly basis (Q2 2022 – Q4 2022) median prices declined by -6.6% for houses and by -23.5% for vacant land. Total sales softened between Q4 2021 – Q4 2022, by -27.9% (to 49 sales) for houses, while total sales for units increased 30.0% over the 12-month period (to 13 sales). There are new opportunities for buyers in Tumut, as prices have become more affordable in recent months.
Average vendor discounts between Q4 2021 and Q4 2022 have shifted slightly for houses, to a higher discount of -3.3% (from -2.2%). Vacant land on the other hand swung to a premium of 2.1% in Q4 2022. House market conditions in Tumut are continuing to favour buyers, where sellers are willing to negotiate below their initial listing price. The land market can at times fluctuate, due to its smaller size, but as an overall tend to trend in as a discount for buyers.
In December 2022, house rental yields in Tumut were recorded at 4.4%, well above Sydney Metro (2.7%). In the 12 months to Q4 2022, median house rental price increased 11.1% to reach $400 per week. In this time the number of houses rented increased by 9.1% (to 24 rentals). This suggests an undersupply in the rental market. Combined with higher rental yields, this confirms Tumut as a more affordable market for investment when compared to Sydney Metro.
4+ bedroom houses have provided investors with +15.0% rental growth annually, achieving a median rent of $460 per week.
Tumut recorded a vacancy rate of 1.2% in December 2022, below Sydney Metro’s 1.8% average. The spike in late 2022 can be attributed to more investors capitalising on a tight rental market. That said vacancy rates in Tumut have trended relatively steady in the past 12 months and under the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a conducive investment environment, especially with a decline in median house sale prices in the past 6 months.
