Tumbarumba Property Market Update 2nd Half 2023
In 1H 2023, Tumbarumba recorded a median house price of $370,000 and a median vacant land price of $308,930. This is an annual (1H 2022 – 1H 2023) price growth of 10.4% for houses and a significant increase for vacant land. Total sales declined between 1H 2022 – 1H 2023, by -51.6% (to 15 sales) for houses and -82.8% (to 4 sales) for vacant land. Thus, there is an undersupply of all property types, as price growth is alongside lower sales volumes. The supply imbalance has created a buffer against higher interest rates, thus an opportune time for sellers to capitalise on their investment.
Average vendor discounts between 1H 2022 and 1H 2023 have shifted to a larger discount of -3.8% for houses. The house market conditions in Tumbarumba continue to favour buyers, as sellers are willing to accept below the first list price. 1H 2023 recorded the highest average vendor discount over the past 24 months, thus an opportune time for first home buyers.
House rental yields in Tumbarumba was 4.4% in June 2023, higher than Snowy Valleys LGA (3.9%) and Sydney Metro (2.8%). Median house rental price increased by 20.3% in the 12 months to 1H 2023, to $385 per week; and the number of houses rented increased by 7.7% (to 14 rentals). Unit median prices increased by 4.5%, to sit at $230 per week. Overall, this represents a resilient rental market in Tumbarumba, which has a more affordable entry price compared to Sydney Metro.
2-bedroom houses have provided investors with 41.2% rental growth annually, achieving a median rent of $360 per week.
Tumbarumba recorded a vacancy rate of 1.4% in June 2023, below Sydney Metro’s 1.7% average. Vacancy rates in Tumbarumba have fluctuated in the past 12 months, however overall, an increasing in trend. This could be due to investors taking advantage of the tight rental market. That said vacancy rates in Tumbarumba ¥ are still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus quicker rental occupancy and a conducive environment for investors.
