Tumbarumba Property Market Update 2nd Half 2024
Tumbarumba, nestled in the Snowy Mountains, offers a tranquil lifestyle with stunning natural scenery and a close-knit community. The town is perfect for outdoor enthusiasts, with access to national parks, vineyards, and year-round recreational activities.
Property Trends
In the 1st half 2024, Tumbarumba recorded a median house price of $375,000, and a median vacant land price of $245,000. This represents annual (1H 2023 – 1H 2024) median price growth of 29.3% for houses and significant growth (more than double) for vacant land. Comparing H1 2023 – 1H 2024, total house sales declined by -10.0%, to 18 sales in 1H 2024. The vacant land market remains small, at 6 sales in 1H 2024. This suggests that there is an undersupply for houses and high demand for vacant land. Now is an ideal time for owners to capitalise on their investments, and with no new housing stock planned; for buyers to enter the market.
Project Development
Tumbarumba will see approximately $7.8M of new projects commencing construction between 2020 and 2024, with a focus on commercial and infrastructure projects. There are no residential projects planned in 2024. With no new incoming ready-to-go supply planned, an undersupply is expected. This will push up house and vacant land prices, thus the current softening in median house price (as of Q2 2024) is only temporary.
Rental Market & Growth
House rental yields in Tumbarumba was 3.8% in June 2024, higher than Sydney Metro (2.8%). This was paired with a 4.3% increase in median house rental price in the past 12 months to Q2 2024, now at $382 per week (in Q2 2024). During this time the number of houses rented declined by -14.3%, to 6 house rentals in Q2 2024. The house rental market is undersupplied, creating a more affordable investment option than Sydney.
Vacancy Rates & Property Investment
Tumbarumba recorded a vacancy rate of 0.0% in June 2024, well below Sydney Metro’s 1.7% average. A 0.0% vacancy rate suggests that all available rentals are rented. Vacancy rates in Tumbarumba have fluctuated over the past 12 months, due to the small size of its rental market. That said, the average vacancy rate is 0.7%, well below the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%. This suggests quicker occupancy of rental properties, thus a conducive and sustainable investment market in Tumbarumba. Further, Tumbarumba has a more affordable entry price than Sydney.
