Gundagai Property Market Update 1st Half 2025
Gundagai is a historic town in the rolling hills of New South Wales about 375km southwest of Sydney. The town is rich in culture and natural history, and is home to well-preserved colonial architecture and the iconic Dog in the Tuckerbox. With a prefect mix of country charm mixed with the natural beauty and modern conveniences, Gundagai is an ideal family location.
Property Trends
In Q4 2024, Gundagai recorded a median house price of $472,500 and a median vacant land price of $262,500. This represents 12 months (Q4 2023 - Q4 2024) growth of 2.2% for houses and a softening of -12.5% for vacant land. Comparing Q4 2023 and Q4 2024, total sales increased by 25.0% (to 15 sales) for houses, however fell by -12.5% (to 3 sales) for vacant land. There is an undersupplied house market in Gundagai, creating a buffer against higher interest rates. Median house price also increased in the past 6 months to Q4 2024, by 4.5%. Without any new residential projects planned in recent and coming years, house prices are likely to further increase.
Project Development
Gundagai will see approx. $754.0M of new projects commencing from 2023-2026. Clara Energy Project Rosedale ($600.0M) during this time, to deliver renewable energy from both solar and hydrogen to the area. At present there are no residential stock planned, causing a further undersupply in the market and pushing up house prices even further.
Rental Market & Growth
House rental yields in Gundagai was 3.4% as of December 2024, below Cootamundra-Gundagai LGA (4.5%) but above Sydney Metro (2.7%). The median house rental price remained stable in the past 12 months to Q4 2024, at $440 per week. That said, this represents a rental price growth of 10.0% in the past 6-months. During this time the number of houses rented decreased by -30.0% (to 7 houses). This indicates a highly demanded rental market in Gundagai, benefiting investors.
Vacancy Rates & Property Investment
Gundagai recorded a vacancy rate of 0.4% in December 2024, well below the Cootamundra-Gundagai LGA average of 1.4% and Sydney Metro’s 2.1%. Vacancy rates have decreased rapidly in the past 12 months after hitting a peak of in 4.8% April 2024, which is a significant tightening in the rental market. Furthermore, a 0.4% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties in Gundagai. This creates a conducive and sustainable environment for investors.
