Tumut Property Market Update 1st Half of 2022

In Q4 2021, Tumut recorded a median house price of $365,000, and a median vacant land price of $151,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 21.7% for houses and 20.8% for land. Between Q4 2020 – Q4 2021 total sales in both markets slowed, by -13.1% for houses (to 73 sales) and -34.8% for land (to 15 sales). The market is undersupplied, as the imbalance between high demand and low stock have resulted in double digit price growth. Now is an ideal time for owner occupiers and downsizers to capitalise on their investment, and for developers to offer ready-to-sell stock.

Average vendor discounts between Q4 2020 and Q4 2021 have tightened for houses, to -2.2%, and slightly widened for land, to -7.4% for land. Market conditions in Tumut is unique, as house buyers must offer closer to the first list asking price. However, land buyers can still benefit from a discount. Now is the time to transact.

In December 2021, house rental yields in Tumut were recorded at 4.3%. In the 12 months to Q4 2021, the median house rental price increased by 2.8% to reach $370 per week, while average days on the market slightly increased to 18 days. Rental yields in Tumut are slightly lower than Snowy Valley LGA’s, however this is due to annual median house sale price growth (21.7%) outpacing median house rental price growth.

2+ bedroom houses have provided investors with +18.5% rental growth annually, with a median rent of $275 per week.

Also in December 2021, Tumut recorded a vacancy rate of 0.3%, below that of Snowy Valleys LGA (0.7%) and Sydney Metro (2.6%). Vacancy rates in Tumut remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and have trended within the 0.5% mark for the past 18 months, 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.