Tumbarumba Property Market Update 2nd Half of 2022
In H1 2022, Tumbarumba recorded a median house price of $290,000, and a median land price of $95,000. This represents annual (H1 2021 – H1 2022) median price growth of 9.4% for houses and 111.1% for land. Total sales declined between H1 2021 – H1 2022, by -40.6% (to 19 sales) for houses and by -33.3% (to 4 sales) for land. It is evident that properties are in high demand in Tumbarumba. Key indicators suggest an undersupply for both house and land, as price growth is alongside lower sales volumes. This level of demand and supply imbalance can create a buffer against rising cash rates.
Average vendor discounts between H1 2021 and H1 2022 have tightened to -2.9% for houses. Market conditions in Tumbarumba have now shifted closer to the vendors asking price, where buyers need to offer closer to the first listing price to secure their property.
In June 2022, house rental yields in Tumbarumba (2653) were recorded at 3.7%. In the 12 months to H1 2022, the median house rental price remained the same at $320 per week. Combined with a stable median house rental price growth, investors can be confident of a resilient market due to scarce supply in the area, with only 13 houses rented in H1 2022.
2+ bedroom houses have provided investors with +13.3% rental growth annually, achieving a median rent of $255 per week
Also in June 2022, Tumbarumba recorded a vacancy rate of 0.7%, below that of Snow Valleys LGA (0.9%) and well below Sydney Metro (1.6%). Vacancy rates in Tumbarumba have remained well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. Low vacancy rates remain a feature for Tumbarumba, however, have recently trended upwards after reaching 0.0% in December 2021. Still, with a lower median entry price compared to other areas and in particular Sydney Metro, these key indicators suggest a conducive environment for investors.
