Tumbarumba Property Market Update 1st Half 2023
In the 2nd half of 2022, Tumbarumba* recorded a median house price of $355,000 and median land price of $140,000. This represents annual (H2 2021 – H2 2022) median price growth of 10.9% for houses and a -50.9% price decline for land. Total sales declined between H2 2021 – H2 2022, by -43.8% (to 18 sales) for houses. It is evident that properties are in high demand in Tumbarumba. Key indicators suggest an undersupply for both property types, particularly in the housing market, as price growth is alongside lower sales volumes. The supply imbalance has created a buffer against rising cash rate.
Average vendor discounts between 2H 2021 and 2H 2022 have tightened for houses, to -1.2%. Interestingly it has slightly widened for vacant land, to -3.4%. The house market conditions in Tumbarumba* provide an advantage for both buyers and sellers, as buyers can benefit from a discount but sellers can achieve a final price closer to their first list price. Vacant land market continues to favour buyers.
In December 2022, house rental yields in Tumbarumba¥ were recorded at 5.9%, well above Sydney Metro (2.7%). In the 12 months to 2H 2022, median house rental price grew by 3.0% to reach $340 per week. In this time the number of houses rented declined by -52.4% and average days remained low at a low 27 days. Overall, this represents an undersupplied rental market; and an attractive more affordable investment option for investors.
2 bedroom houses have provided investors with +14.9% rental growth annually, achieving a median rent of $285 per week.
Tumbarumba¥ recorded a vacancy rate of 0.4% in December 2022, below Sydney Metro’s 1.8% average. Vacancy rates in Tumbarumba¥ have fluctuated in the past 24 months, due to the size of the rental market. That said vacancy rates in have trended below 2.0% over the past 24 months, which is under the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This indicates a conducive and sustainable environment for investors, especially due to the undersupply in rentals.
