Gundagai Property Market Update 2nd Half 2025
Gundagai is a historic town in the hills of New South Wales, about 375km southwest of Sydney. It is rich in culture and natural history and is home to well-preserved colonial architecture and the iconic Dog on the Tuckerbox. With a prefect mix of country charm, natural beauty and modern conveniences, Gundagai is an ideal family location.
Property Trends
In 1H 2025, Gundagai recorded a median house price of $480,000 and a median land price of $210,000. This represents annual (1H 2024 – 1H 2025) price growth of 8.5% for houses and 20.0% for land. Comparing 1H 2024 and 1H 2025, sales declined by -33.3% (to 20 sales in 1H 2025) for houses and by -40.0% (to only 6 sales in 1H 2025) for land. This confirms a highly undersupplied market, which created a buffer against higher interest rates and has further benefited from the latest cash rate cuts. Now is an ideal time for owners to capitalise on their investments. Without any new residential stock planned between 2022 and 2027, the current undersupply in the housing market will continue.
Project Development
Gundagai will see approx. $770.5M of new projects commencing from 2022–2027. The Clara Energy Project Rosedale ($600.0M) is a key commercial project during this time, to deliver renewable energy from both solar and hydrogen to the area. This will stimulate the local economy through job creation, which can attract more people to live in Gundagai. At present there are no residential stock planned, causing a further undersupply in the market and pushing up prices even further.
Rental Market & Growth
House rental yields in Gundagai were 3.7% as of June 2025, below the Cootamundra-Gundagai LGA (4.6%) but higher than Sydney Metro (2.7%). Further, median house rental price increased by 15.6% in the past 12 months to the 1st half of 2025, at $465 per week. In the same timeframe, the number of houses rented decreased by -76.5% (to 8 houses in the 1st half of 2025), which suggests an undersupply. This indicates a highly demanded and competitive house rental market in Gundagai, which is beneficial to investors.
Vacancy Rates & Property Investment
Gundagai recorded a vacancy rate of 0.0% in June 2025, well below the Cootamundra-Gundagai LGA average of 0.5% and Sydney Metro’s 1.6%. Vacancy rates have fluctuated in the past 12 months, but overall showed a significant declining pattern, down from 3.8% in June 2024. This indicates an even tighter rental market. Further, a 0.0% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in Gundagai.
