Upper Hunter Property Market Update 2nd Half 2025
Upper Hunter, in New South Wales, is a picturesque and vibrant area known for its rich landscapes and renowned wineries. The area is surrounded by rolling hills, charming small towns and national parks. With plenty of outdoor activities to enjoy, Upper Hunter is an ideal location for those looking for a rural escape.
Property Trends
In Q2 2025, Upper Hunter recorded a median house price of $580,000 and a median unit price of $450,000. This represents annual (Q2 2024 – Q2 2025) growth of 7.4% for houses and a significant 35.5% jump for units. Comparing Q2 2024 and Q2 2025, sales declined by -6.1% (to 153 sales in Q2 2025) for houses and by -45.2% (to 17 sales in Q2 2025) for units. There is a highly demanded market, with houses and units currently undersupplied. This suggests that now is an ideal time for house-owners to capitalise on their investments. There is a very limited number of new stocks coming onto the market, indicating potential price increases. First home buyers must act fast.
Project Development
Upper Hunter will see approximately $1.7B of new projects commencing in 2025. The Edderton Joint Venture Solar Farm & Battery Storage System ($850M) is the major commercial project commencing construction in 2025. This will stimulate the local economy through more job creation, which can increase demand for housing. With limited ready-to-go stock (only 19 townhouses and 9 units) planned, Upper Hunter will still see an undersupply in housing. This will push property prices up further.
Rental Market & Growth
House rental yields in Upper Hunter were 4.2% as of June 2025, above that of Hunter Region (3.6%) and the Sydney Metro (2.7%). Furthermore, median house rental price increased by 7.5% in the past 12 months to Q2 2025, at $570 per week. During this time, the number of houses rented increased, by 23.7% (to 141 houses in Q2 2025). There is a highly demanded house rental market in Upper Hunter, which suggests there is more room for investors in the area.
Vacancy Rates & Property Investment
Upper Hunter recorded a vacancy rate of 1.1% in June 2025, on par with the Hunter Region average and slightly below Sydney Metro’s 1.6%. Vacancy rates have fluctuated significantly in the past 12 months, witnessing a sharp fall from 2.1% in December 2024. Further, a 1.1% vacancy rate is below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rentals properties. This indicates a conducive environment for investors, even with higher house and unit prices in Q2 2025.
