Property investors who have had real estate in Redfern, 2016 should be pleased with this NSW suburb’s performance compared to the rest of the country. Over the last year it has seen median house prices increase in value by 22.30%
Taking the average capital gain, or increase in median house value, Redfern,2016 has racked up an average of 22.30% over the period. This ranks it number 78th in the whole country for real estate investors looking at median house price increases.
Sellers are offering property buyers an average discount of -4.77% to buyers in Redfern at the moment, which is less than average for the rest of NSW.
Using the current median advertised rental of $800 and the average annual increase in value of a median property of 11.16%, investors should hope to achieve an overall return of 2.45%
At number 377th in the list of Australian suburbs ordered by increase in median house value over the last year, Redfern, 2016 is in the top 30% with a property value increase of 12.43% recorded in median house prices.
Taking the average capital gain, or increase in median house value, Redfern,2016 has racked up an average of 12.43% over the period. This ranks it number 476th in the whole country for real estate investors looking at median house price increases.
The most recent median price for Redfern is $950000, with sellers offering an average of -3.60% off the asking price.
At number 67 in a list of fastest selling suburbs, Redfern is in the TOP 10% of suburbs in Australia with an average of days on market 30.78 for properties listed there.
Using the current median advertised rental of $650 and the average annual increase in value of a median property of 8.58%, investors should hope to achieve an overall return of 3.56%
Redfern is slowly shaking off its image as one of Sydney's less desirable suburbs, as significant urban regeneration continues to transform the area.Full summary
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Redfern is slowly shaking off its image as one of Sydney's less desirable suburbs, as significant urban regeneration continues to transform the area.
The ongoing gentrification of this strategically placed suburb with a reputation problem is likely to produce good long-term returns – especially as it offers easy access to Sydney’s CBD, the inner west and the eastern suburbs.
While the suburb is just one stop from Central Station, the CBD is also within easy walking distance – as are Darlington and, to a lesser extent, Newtown. To the immediate east lie Surry Hills, Moore Park and Centennial Park.
Redfern is popular with an eclectic mix of young professionals, students and alternative types. It's an affluent crowd, however, with an estimated average weekly income of $2.061 – more than $650pw higher than the NSW average. Population growth is also high, with SQM Research projecting 2% growth per year for the next few years.
In line with its eclectic reputation, there are a wide range of amenities in Redfern, particularly trendy bars, cafes, independent stores and boutiques. A weekend farmers market takes place at the Old Eveleigh Train Yards. The suburb is also within easy reach of the Surry Hills Shopping Centre for more conventional fare.
Also boosting Redfern is the amount of urban redevelopment money being ploughed into the suburb. Substantial urban improvement works and redevelopment is ongoing in a bid to improve its chequered reputation – particularly in the area around Redfern Station – by creating “social, affordable and private housing throughout the area as well as new facilities, parks, community and recreational spaces”.
This ongoing work should see the impressive growth of the suburb continue. Nevertheless, the east of the suburb tends to be more gentrified than the west, so risk-averse investors may wish to stay on this side of the tracks. New developments in central streets George Street, Wells Street and Pitt Street may also offer good opportunities for investors looking for low-maintenance properties with maximum depreciation.
All in all, Redfern’s a solid contender for the investor seeking an affordable unit in a city centre location.