PRD Tumut Property Market Update 2nd Half of 2019
In Q2 2019, Tumut recorded a median house price of $279,000, and a median vacant land price of $135,000. This represents annual (Q2 2018 – Q2 2019) median price growth of 8.3% for houses and 12.5% for vacant land. At the same time, total sales slowed for Q2 2019, by -16.3% for houses (to 67 sales) and by -45.5% for vacant land (to 12 sales). Increasing property values and less competition in Tumut creates an ideal environment for buyers to act.
Average vendor discount between Q2 2018 and Q2 2019 slightly tightened for houses from -5.2% to -5.0%, while vacant land recorded a neutral market (0.0%). That said, vacant land’s 18-month average of -6.2% discount is a good indicator, given limited sales volumes. Market conditions in Tumut continue to favour buyers, as sellers are willing to negotiate below their initial listing price.
Over the past 12 months, house rental yields in the Tumut have remained steady, sitting at 4.8% in June 2019. This suggests the house rental market remains in a healthy position, despite a slight slip in demand for rental properties in Tumut across the same time period (-2.9% in the 12 months to Q2 2019).
2 bedroom houses have provided investors with +50.0% rental growth annually, achieving a median rent of $345 per week.Tumut recorded 1.9% vacancy rate in June 2019, below Sydney Metro’s (3.5%). This is good news for investors for alternative investment, as Tumut has a more affordable entry price compared to Sydney Metro, yet a lower vacancy rate.