Gundagai Property Market Update 2nd Half of 2022
In Q2 2022, Gundagai recorded a median house price of $405,850, and a median land price of $243,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 102.9% for houses and 251.9% for land. Total sales decreased between Q2 2021 – Q2 2022, by -22.7% (to 34 sales) for houses and by -15.0% (to 17 sales) for land. The Gundagai market is undersupplied, as price growth is alongside lower sales volume. A deep supply and demand imbalance can provide a buffer to rising cash rate. Now is the time for owners to capitalise on their investments, and developers to enter the market.
Average vendor discounts between Q2 2021 and Q2 2022 have tightened for both property types, to -1.9% for houses and -1.3% for land. Market conditions in Gundagai have shifted to favour sellers, where buyers must offer just below the initial listing price. The past 6 months saw the tightest discount seen in Gundagai.
Over the past 12 months, house rental yields in Gundagai increased to sit at 6.0% in June 2022. This was paired with a 102.9% increase in median house rental price and a -22.7% decrease in the number of houses rented, which represents a deeply undersupplied rental market. Further, average days on the market declined by -8.8% in the past 12 months to June 2022. This represents a strong rental market for investors.
4+ bedroom houses have provided investors with +64.4% rental growth annually, achieving a median rent of $518 per week.
Gundagai recorded a vacancy rate of 0.9% in June 2022, which is below Sydney Metro’s 1.6% average. Vacancy rates in Gundagai have held relatively steady over the past 12 months and sitting within the 1.0% band over the past 24 months. These key indicators create a conducive and sustainable environment for investors, despite the significant increase in median sale prices of property over the past 12 months.
