Tumut Property Market Update 2nd Half of 2022
In Q2 2022, Tumut recorded a median house price of $425,000, and a median land price of $250,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 41.7% for houses and significantly for land. Total sales decreased between Q2 2021 – Q2 2022, by -18.2% (to 54 sales) for houses and by -9.5% for land (to 19 sales). An undersupply is evident, as high price growth is alongside lower sales volumes. Now is an ideal time for owners to capitalise on their investment, and for developers to offer ready-to-sell stock. An undersupplied market can create a buffer against rising cash rates.
Average vendor discounts between Q2 2021 and Q2 2022 have widened for houses, to -2.8%, and tightened to -3.4% for land. Market conditions in Tumut are continuing to favour buyers, where sellers are willing to negotiate below their initial listing price. Now is the time to enter the market.
House rental yields in Tumut was 4.9% in June 2022, much higher than Sydney Metro’s 2.5%. This was paired with an 11.8% increase in median house rental price (to $380 per week) in the 12 months to Q2 2022 and a decrease of -16.7% (to 30 rentals) in the number of houses rented. This suggests an undersupply in the rental market. Combined with in Tumut being a more affordable market compared to Sydney Metro, this creates an incentive for investors to enter the market.
2-bedroom houses have provided investors with +12.3% rental growth annually, achieving a median rent of $292 per week.
Tumut recorded a vacancy rate of 0.9% in June 2022, which is below Sydney Metro’s 1.6% average. Vacancy rates in Tumut have held steady over the past 12 months, trending within the 1.0% band. This indicates quick rental occupancy and stability in rental demand. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
