Tumut Property Factsheet 1st Half 2019 OVERVIEW Positioned around 130km to the west of , Tumut* is a regional town in the Region of . 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 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 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, 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% to the first asking price of a property. - 6.1% - 6.1% - 6.2% - 6.6% - 6.9% -4.0% - 7.0% 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. range of middle-market price range options.

*Disclaimer: Tumut market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Adelong, Batlow, Tumut, Gundagai and Talbingo. Source: APM Pricefinder. © Copyright PRDnationwide 2019. INVESTMENT ANALYSIS KEY HOUSE FACTS Q4 2018 Median Rent Price: $270 per week Rental Yield: 4.9% HOUSE UNIT Average Days on Market: 25 Bedroom Breakdown: 2 Bed: 19%, 3 Bed: 61%, 4+ Bed: 20% 2 Bedroom 1 Bedroom KEY UNIT FACTS Q4 2018 3 Bedroom 2 Bedroom Median Rent Price: $215 per week 4+ Bedroom 3+ Bedroom Rental Yield: 4.7% Average Days on Market: 24 Bedroom Breakdown: 1 Bed: 24%, 2 Bed: 69%, 3+ Bed: 7%

KEY COMMENTS OverviewInterest in Tumut* was recorded at an average of 148 online visits per property in December 2018. House rental demand has seen a significant upswing in Tumut*, increasing by +44.4% in the 12 months to Q4 2018. At the same time, the median house rental price grew by 3.8%. This suggests there is healthy rental demand for houses. Unit median rental prices grew 7.5% to $215 per week over the past 12 months to Q4 2018, with the number of units rented relatively stable during this time. Average days on market continue to trend low, at 25 days (house) and 24 days (units), ensuring quick rental returns for investors.

MEDIAN RENT AND AVERAGE DAYS ON THE MARKET* 80 350

70 300

60 250

50 200

40

70 150 Number of of Number Rentals 65 30 57 58

45 100 20 43 Median Rent ($) / Average Days Market on Days / Rent ($) Average Median

26 22 50 10 18 13 10 9 0 0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 House Unit House Average Days Unit Average Days Median House Rent Median Unit Rent

*Disclaimer: 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. RENTAL PERFORMANCE 2018* KEY COMMENTS Median House Rent P/W Annual Change Tumut’s* rental returns for both $400 10.0% houses (4.9%) and units (4.7%) are comparatively superior, being above 2.9% 9.0% $350 postcode 2720 (4.5% for house and 8.0% 4.6% for units) and Sydney Metro $300 (2.9% for house and 3.6% for units). 3.7% 7.0% 9.1% $250 6.0% 2-Bedroom houses provided the highest annual rental growth, at 9.1%. $200 5.0% $350 Vacancy rates in Tumut* was 1.9% in $150 4.0% $280 December 2018, well below Sydney $240 3.0% $100 Metro’s 3.6% level. This highlights a 2.0% healthier rental demand in Tumut*, $50 particularly in comparison to often 1.0% preferred Metro areas. Investors $- 0.0% seeking stable occupancy and healthy 2-Bedroom 3-Bedroom 4+ Bedroom yields should thus consider Tumut*.

VACANCY RATES 2018 RENTAL YIELD 2018

4.0% Suburb/ House Unit Postcode/ Rental Rental 3.5% LGA Yield Yield 3.0% 2.5% Tumut** 4.9% 4.7% 2.0% 1.5% Postcode 2720 4.5% 4.6% 1.0% 0.5% Snowy Valleys LGA 5.1% 5.0%

0.0% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Riverina Region 5.4% 5.9%

Sydney Metro 2.9% 3.8% Tumut** Snowy Valley LGA Sydney Metro

AUCTION CLEARANCE RATES 2018** Q4 18 COMPARISON 100.0%

Suburb/ Auction 80.0% Postcode/ LGA Clearance Rate

60.0%

Tumut** (2018) 84.6% 40.0%

Snowy Valleys 20.0% 90.0% LGA Auction Rate Clearance Auction 0.0% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Sydney Metro^ 44.3% Snowy Valleys LGA

*Rental performance graph represents aggregate house median rent prices in the following suburbs: Adelong, Batlow, Tumut, Gundagai and Talbingo. Annual change is a comparison between 2017 and 2018 median rent figures **Auction Clearance rates for Tumut are for all residential auctions held in the suburbs Adelong, Batlow, Tumut, Gundagai and Talbingo. ^Capital city data obtained by accumulating Domain’s weekly auction clearance results.. Source: APM Pricefinder, Domain, SQM Research. © Copyright PRDnationwide 2019. KEY PROJECT DEVELOPMENTS

TUMUT LAWN TENNIS CLUB TUMUT POOL HEATING RESURFACING UPGRADE

$87,000QUEEN was STREET awarded APARTMENTS to the Tumut Lawn Tennis Club in The Tumut Pool is set to receive a heating upgrade, thanks to November 2018 through the NSW Government Stronger the recently announced grant issued through the NSW Country Communities Fund. The money is set to be utilised Government Stronger Country Communities Fund. The in resurfacing three of the club’s courts. This is expected to $204,000 grant is to be used for equipment to regulate the allow the club to attract new tournaments to the area, thus pool’s temperature. This upgrade will enhance the liveability of increasing tourism and the economic development of Tumut*. Tumut* by providing upgrades to existing infrastructure.

TALBINGO WALKING TWICKENHAM OVAL CHANGE TRACK ROOMS

The Talbingo Progress Association have successfully lobbied A ladies’ change room will be added to the Twickenham Oval for $350,000 to create a walking track under the NSW with the $250,000 grant recently awarded under the NSW Government’s Stronger Country Communities Fund. The Government Stronger Country Communities Fund. The track will run from the centre of Talbingo to the Snowy change rooms will have home and away areas, each having Mountains Highway, and is expected to provide tourism three showers and toilets. In improving recreational facilities in benefits commercially and to residents of Tumut* also. Tumut* residents will enjoy greater lifestyle benefits.

*Disclaimer: Key Project Developments featured on this page are either planned, currently under construction, or have been completed. These projects are considered key to Tumut. Source: Cordell Connect Database, , Tumut and Adelong Times. ABOUT PRDnationwide RESEARCH PRDnationwide’s research division provides reliable, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across

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