Tumut Property Market Update 2nd Half 2024
Tumut, nestled in the picturesque Snowy Mountains, offers a peaceful lifestyle with stunning natural scenery and outdoor activities year-round. The town boasts a strong sense of community, excellent local amenities, and close proximity to both Sydney and Canberra.
Property Trends
In Q2 2024, Tumut recorded a median house price of $450,000, and a median land price of $190,000. This represents annual (Q2 2023 – Q2 2024) median price growth of 5.9% for houses and 5.6% for vacant land. Comparing Q2 2023 – Q2 2024, houses sales increased by 17.5% (to 67 sales in Q2 2024) whilst land sales decreased by -9.1% (to 10 sales in Q2 2024). Confidence has returned to the Tumut house market, as prices have continued to grow even with a higher number of sales. The land market is experiencing an undersupply in Q2 2024, evident through low sales. Overall, this suggests that now is an ideal time for owners to capitalise on their investments.
Project Development
Tumut will see approximately $53.8M of new projects commencing construction between 2020 and 2024. There are two residential projects planned: the Lot 9 Fitzroy Street ($2.4M), due to add 6 dwellings; and 140 Lambie Street Units ($750K), due to add 3 units/apartments to the market. With a very limited number of new ready-to-go supply planned, an undersupply is expected. This will continue to push up house prices higherTumut will see approximately $53.8M of new projects commencing construction between 2020 and 2024. There are two residential projects planned: the Lot 9 Fitzroy Street ($2.4M), due to add 6 dwellings; and 140 Lambie Street Units ($750K), due to add 3 units/apartments to the market. With a very limited number of new ready-to-go supply planned, an undersupply is expected. This will continue to push up house prices higher.
Rental Market & Growth
House rental yields in Tumut were 3.9% in June 2024, higher than the Sydney Metro average of 2.8%. This was paired with a 5.0% increase in median house rental price in the past 12 months to Q2 2024, now at $420 per week. Further, the number of houses rented increased by 27.6% in the same timeframe, to 37 rentals in Q2 2024. This suggests a highly demanded house rental market, which is beneficial for investorsHouse rental yields in Tumut were 3.9% in June 2024, higher than the Sydney Metro average of 2.8%. This was paired with a 5.0% increase in median house rental price in the past 12 months to Q2 2024, now at $420 per week. Further, the number of houses rented increased by 27.6% in the same timeframe, to 37 rentals in Q2 2024. This suggests a highly demanded house rental market, which is beneficial for investors.
Vacancy Rates & Property Investment
Tumut recorded a vacancy rate of 1.2% in June 2024, which is well below Sydney Metro’s 1.7% average. Vacancy rates in Tumut have fluctuated over the past 12 months, due to the level of investors opting in/out of the area and the small size of the rental market. That said, a 1.2% vacancy rate is still significantly below the Real Estate Institute of Australia’s ‘Healthy’ Benchmark of 3.0%, and below the Snowy LGA vacancy rate of 3.1%. This indicates a quicker occupancy of rentals, which confirms there is a conductive environment for investors in Tumut.
