Tumut has been named as a property hot-spot for investors looking outside the cooling metropolitan housing market.
Tumut, alongside Leeton, Griffith, Broken Hill, Inverell and Kempsey, has been labelled one of a number of “supercharged” small towns in the latest report from hotspotting.com.au.
With few suburbs in metropolitan areas recording steady increases, it’s no surprise buyers are looking to regional areas.
Regional NSW is currently outperforming Sydney and Melbourne.
Property expert Terry Ryder told metropolitan media that consistent growth in regional towns can be linked to a slowdown in the Melbourne and Sydney markets.
“Booms can only go on for so long until affordability eventually becomes a factor and the buying demand that’s within the market becomes exhausted,” he said.
“Many of the strongest markets now are regional areas — particularly in Victoria and NSW.
“So if you are a property investor looking for affordability and better returns, be aware that some of these regional markets are very strong at the moment.
“Regional yields are much better than the cities, so there’s good prospect for growth. The buying price is a lot better, so we call it a win-win for buyers.”
Researchers believe these “supercharged” areas are potential goldmines for savvy buyers as they have seen big increases in sales of houses and units and the strongest growth patterns of anywhere in Australia over several consecutive quarters.
Ray White principal Ray Piper said the Tumut market had moved positively in the last six months, and had picked up further in the past three to four months.
“We’ve seen properties attracting offers above the asking price, which we haven’t seen here for more than 10 years,” Mr Piper said.
“People are seeing good properties at a price they like, and are happy to pay the asking price or better.
“Six to 12 months ago we had a number of three bedroom brick houses around the $240,000-$250,000 mark … now I don’t think we’d have one below $300,000.”
In a sure sign of newfound confidence in the market, Ray White will this month send eight properties under the hammer at auction on November 17, in a selling method that has largely been confined to the metropolitan regions and other property hotspots.
Mr Piper said most of the upswing has come from outside forces, and namely the pressures in and around Sydney.
“We’ve had strong interest from around Sydney and Wollongong,” Mr Piper said.
“A couple of years ago anywhere past Goulburn was too far away for those investors.
“But places like Goulburn, Crookwell – even Boorowa – have all enjoyed strong growth. We seem to be the next in line.”
Tellingly, Mr Piper said the prospect of the Snowy Hydro 2.0 scheme was yet to have a major impact on the market.
“I would imagine that wouldn’t come until after December, when a final decision is made on the project,” Mr Piper said. “We’ve had a few speculators, but nothing major.”
Tumbarumba, meanwhile, topped the nation in rate of property turnover, where 8.5 per cent of the town’s total number of houses were sold in the past year. According to research firm Corelogic, 93 properties were sold in the Tumbarumba area over the past 12 months in a town where there are just 1099 dwellings.
The impact of Snowy Hydro 2.0 on the regional economy, meantime, will be the focus of a conference in Cooma next month.
Snowy Valleys mayor James Hayes, Tumut Chamber of Commerce president Lorraine Wysman and Eden-Monaro MP Mike Kelly will be among the guest speakers of the two day conference in Cooma.
Topics to be discussed will range from maximizing the regional development opportunities associated with the project through to growth trends and managing that growth through to local workforce capabilities.