Tumut Property Factsheet 1St Half 2019 OVERVIEW Positioned Around 130Km to the West of Canberra, Tumut* Is a Regional Town in the Riverina Region of New South Wales
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Tumut Property Factsheet 1st Half 2019 OVERVIEW Positioned around 130km to the west of Canberra, Tumut* is a regional town in the Riverina Region of New South Wales. The preferred method of sale in Tumut* is private treaty, as seen through the relatively low volume of auctions. An auction clearance rate of 84.6% in 2018 suggests auctions are viable however. CHANGE FROM HALF YEAR LAST YEAR House Sales House Median Price MARKET CONDITIONS House Rental Price Vacant Land Sales The median house price in Tumut* during Q4 2018 was $222,500, whilst the median vacant land price was $101,500. This represents annual (Q4 2017 – Q4 2018) price Land Median Price growth of -7.3% (house) and 12.8% (land). The Tumut 2nd Half 2018 Research Factsheet reported growth of 7.2% (house) and -5.2% (land) annually to Q2 2018. Unit Rental Price Comparing growth levels, houses in Tumut* have become more affordable, whilst land has strengthened in value. Sellers can capitalise on vacant land value upswing, whilst buyers have an opportunity to purchase homes in a cooler market. FUTURE DEVELOPMENTS** The Snowy Valleys Local Government Area (LGA) saw a median house price of A number of projects are scheduled for $220,000 and a median vacant land price of $107,500 as of Q4 2018, representing commencement in Tumut*, collectively annual (Q4 2017 – Q4 2018) price growth of -7.4% and -2.3% respectively. Tumut* is estimated at approx. $900K. Funding for largely in line with these prices, featuring a slightly more premium house market all of these projects was announced in median and a slightly cheaper vacant land market median. This again reinforces the November 2018, as part of the second opportunity presented in Tumut* for house sellers and land buyers alike. round of the NSW Government’s Stronger Country Communities Fund. Average vendor discounting for houses and vacant land has slightly tightened for houses and vacant land, to -5.5% and -5.3% respectively in Q4 2018. This is a One major project set to be completed as tightening of +0.6% (house) and +0.8% (land) on 12 months prior. This means that a result of this funding is the Talbingo sellers are now achieving a sale price closer to their list price. This said, discounts Walking Track. $350K has been awarded are still available which should encourage buyers to enter the market. to go towards the track, which will run from the centre of Talbingo out to the Tumut* recorded a median house rental price of $270 per week in Q4 2018, whilst Snowy Mountains Highway. This project units showed a median rental price of $215 per week. This represents price growth of is set to provide another tourist attraction 3.8% and 7.5% respectively in the 12 months to Q4 2018. Healthy yields of 4.9% within Tumut*, while also enhancing the (house) and 4.7% (unit) are outperforming Sydney Metro (2.9% for house and 3.8%, lifestyle benefits to residents of the area. for units), making Tumut* an alternative affordable investment opportunity. Another major project set to benefit Tumut* is the $250K of upgrades set for Twickenham Oval. A large portion of the SNOWY VALLEYS LGA GROWTH funds will be spent on providing female 120 $300,000 change rooms and toilets. By providing such facilities, Tumut* opens itself up as 100 $250,000 a viable venue for more visiting sports teams as well as directly providing better 80 $200,000 infrastructure for residents of Tumut*. These projects will enhance liveability 60 $150,000 within the Tumut* area, potentially offering a positive influence on the 40 $100,000 Median Price property market in the near future. Number Sales of Number 20 $50,000 *Tumut market data encapsulates aggregate property market conditions in the following suburbs: Adelong, Batlow, Tumut, Gundagai and Talbingo. 0 $0 **Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value. Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Source: APM Pricefinder, realestate.com.au, Tumut and Adelong Times. © Copyright PRDnationwide 2019. House Vacant Land Median House Price Median Vacant Land Price AVERAGE VENDOR DISCOUNT AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT TheAverage averagevendor vendordiscount discountreflects reflects the House Vacant Land theaverage averagepercentage percentagedifference differencebetween 0.0% betweenfirst listed theprice first listand pricefinal andsold theprice . A finallower soldpercentage price. A lowerdifference percentagesuggests -2.0% differencebuyers are (closerwilling toto 0) purchasesuggests close to 4.0% - buyersthe first areasking willing toprice purchaseof a closeproperty . 5.2% 5.3% 5.5% - - - 6.1% 6.1% 6.2% to the first asking price of a property. - - 6.6% - 6.9% 7.0% - - -4.0% - MARKET COMPARISON GRAPH 9.6% - -6.0% TheKEY market FACTS comparison UNIT graph provides a comparative trend for the median -8.0% price of houses and units over the past 10 years. Suburbs profiled are chosen based on their proximity to the main -10.0% suburb analysed in this Factsheet, Change from Listing to to Listing Price Sale from Change which is Tumut. The main suburb is -12.0% shown as a dotted black line in the Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 graphs below. HOUSE MARKET COMPARISON $300,000 $250,000 $200,000 $150,000 $100,000 Median House House Median Price $50,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tumut Adelong Batlow Talbingo UNIT MARKET COMPARISON $250,000 $200,000 $150,000 $100,000 $50,000 Median Vacant Land Price Land Vacant Median $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tumut Adelong Batlow Source: APM Pricefinder. © Copyright PRDnationwide 2019. AVERAGE NUMBER OF DAYS ON THE MARKET** 120 KEY HOUSE FACTS Q4 2018 100 Median Sale Price: $222,500 Annual Growth: -7.3%* Average Days on Market: 101 80 % Change Between First Listed Price and Sold Price: -5.5% 60 KEY UNIT FACTS Q4 2018 109 104 102 101 95 92 88 40 86 KEY FACTSMedian UNIT* Sale Price: $101,500 Average Days Market on Days Average : 12.8%* Median SaleAnnual Price Growth : $785,000 Average Days on Market: 46 50 50 Annual Area Growth: 11% 46 20 44 Average %Days Change on Market: Between 36 First Listed Price : -5.3% % Changeand between Sold Price First Listed Price and 0 Sold Price: -0.1% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 House Vacant Land Overall Market Trend SALES AND MEDIAN PRICES** 90 $300,000 80 $250,000 70 60 $200,000 50 $150,000 40 80 75 Price Median 67 Number of of Sales Number 30 $100,000 51 53 53 20 29 $50,000 25 25 10 20 22 21 0 $0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 House Sales Vacant Land Sales Median House Price Median Vacant Land Price *Annual growth represents price growth for property transactions between Q4 2017 to Q4 2018 (inclusive). **Tumut market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Adelong, Batlow, Tumut, Gundagai and Talbingo. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2019. SALES PRICE POINT COMPARATIVE ANALYSIS HOUSE PRICE POINT 2017 HOUSE PRICE POINT 2018 24.3% 22.6% 27.6% 27.6% Less than $174,999 $175,000 to $199,999 $200,000 to $224,999 $225,000 to $249,999 $250,000 to $274,999 6.3% 8.8% $275,000 to $299,999 3.7% 11.8% 5.7% $300,000 to $324,999 9.6% 9.2% $325,000 and above 8.9% 6.1% 8.5% 9.2% 10.0% LAND PRICE POINT 2017 LAND PRICE POINT 2018 1.8% 15.0% 18.3% 12.7% 16.4% Less than $74,999 $75,000 to $99,999 7.3% 3.6% 11.7% $100,000 to $124,999 $125,000 to $149,999 5.5% $150,000 to $174,999 5.0% 3.6% 28.3% $175,000 to $199,999 $200,000 to $224,999 1.7% $225,000 and above 20.0% 49.1% KEY IMPLICATIONS - HOUSES KEY IMPLICATIONS – VACANT LAND 2018 saw the dominant portion of houses sold in Tumut* The dominant proportion of vacant land sales which fall into the $325K+ range, with 24.3% of total sales. In occurred in Tumut* during 2018 were in the $100K-125K 2017, this title was jointly held by the less than $175K price range, with 49.1% of total sales. This represents and $325K+ price brackets, each at 27.6%. Both of these growth of +19.1% compared to 2017. In contrast, the brackets slightly shrunk during 2018, yet still remained largest price point in 2017 was $75K-100K, with 28.3% of the largest 2 price brackets. This reveals a clear demand sales. In 2018, total sales within this price range declined for both premium and affordable housing stock in Tumut*. by -24.7% to just 3.6% of total sales. This indicates a clear upward movement into the next price bracket. As a result of these brackets shrinking, middle range options have begun to increase in total sales. This shift is 2018 thus saw a clear decrease in the availability of more providing more options available near the median price in affordable land relative to sales which occurred in 2017. Tumut*. Buyers at all price points are thus able to seek Buyers should thus act quickly to secure more affordable out property, while it is slowly becoming more difficult to vacant land options, or expect to choose from a wider access the most premium and most affordable options.