Tumbarumba Property Market Update 1st Half 2024
In the 2nd half 2023, Tumbarumba recorded a median house price of $492,500, and a median land price of $90,000. This represents annual (2H 2022 – 2H 2023) median price growth of 49.2% for houses and a price softening of -48.7% for vacant land Total sales declined between 2H 2022 – 2H 2023, by -29% (to 20 sales) for houses, and only 3 land sales were recorded. There is a significant undersupply of houses in Tumbarumba, with properties in high demand. Houses suggest real returns on investment, especially with an absence of new houses in the area. Thus, now is an ideal time for owners to transact.
Average house vendor discounts between 2H 2022 and 2H 2023 have widened to a larger discount, of -5.9%. House market conditions continue to favour buyers, as sellers are willing to accept below the initial listed price. 2H 2023 recorded the highest discount in the past 3 years, despite high median house sales price growth. This is good news for buyers, especially in an undersupplied market.
House rental yields in Tumbarumba was 4.4% in December 2023, well above Sydney Metro’s average of 2.8%. This was paired with an 11.2% increase in median house rental price in the past 12 months to Q4 2023, to $378 per week, and a significant decline in the number of houses rented (only 2 houses). The unit rental market is small, with only 5 units rented in the past 18 months, and the last known unit rented at $230 per week. Overall, this suggests a highly demanded rental market, and a more affordable investment option than Sydney.
2 bedroom houses have provided investors with +26.3% rental growth annually, achieving a median rent of $440 per week.
Tumbarumba recorded a vacancy rate of 0.0% in December 2023, which suggests there are no rental vacancies at all. Vacancy rates in Tumbarumba did fluctuate over the past 12 months, however always trending below 1.5%, which is well below the Real Estate Institute of Australia’s ‘Healthy” Benchmark of 3.0%. This suggests there is quicker occupancy of rental properties, which is conducive for investment.
