Investment property in Newtown has done around average for investors when compared to the country as a whole over the last 12 months, with an increase in the median house price of 5.61%
Comparing Newtown,2042 ‘s 5year and quarterly average capital gain offered to property investors, it performed less well across the longer period
Our latest figures would indicate that property sellers in Newtown are currently offering property investors an average price cut of -1.32% below the asking price at the moment.
At number 218 in a list of fastest selling suburbs, Newtown is in the TOP 10% of suburbs in Australia with an average of days on market 39.6 for properties listed there.
With the median price for a house in Newtown being $1355000 and the advertised rent reaching $750 the gross rental yield for property investors calculates out to be 2.88%
Newtown is in the TOP 20% in NSW when comparing median price capital growth over the last year. Newtown gave property investors a very good capital gain figure when compared to the rest of the state, with 17.69%.
Newtown,2042 was ranked 379 in Australia by increase in median property value over the quarter.
State is the 7th most discounted Australian state or territory in this month’s figures with an average Vendor Discount of -4.41% offered to property buyers. Sellers in Newtown itself are offering an average vendor discount of -6.88% to real estate investors.
A $500 per week rent on the median house gives suburb investors a gross yield of circa 3.40%, without taking into account capital value appreciation, which has been averaging out at 9.26%.
Rich Harvey of www.propertybuyers.com.au has two words to describe Newtown: trendy and hip. “You’ve got the most diverse demographic in the suburb,” says Harvey. “You’ve got couples, singles, gays, students, recent migrants, as well as budding artist and writers. It’s really dynamic and vibrant.”Full summary
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Rich Harvey of www.propertybuyer.com.au has two words to describe Newtown: trendy and hip. “You’ve got the most diverse demographic in the suburb,” says Harvey. “You’ve got couples, singles, gays, students, recent migrants, as well as budding artist and writers. It’s really dynamic and vibrant.”
King Street, which is the main thoroughfare, has the highest concentration of shops and cafes in the area. The suburb is located close to Sydney University and Prince Alfred Hospital and has excellent transport via its own train station and regular bus services to the Sydney CBD.
“Some properties in Newtown have hit a premium, but I don’t think it’s going to dip that much because Newtown has a certain appeal to this demographic. A lot of people still prefer to live in Newtown than Enmore or Sydenham; even these suburbs are very close to Newtown because of its history and character,” says Harvey.
Newtown’s residents are mostly young, with an average age of 32 according to the ABS Census. A large proportion (54%) of residents rent, while a third are currently paying their mortgages and 16% fully-own their homes. Residents are also quite affluent, earning an average of $2,243 per week, compared to $1,367 across NSW.
While pricing for houses has hit a premium in Newtown, units are the affordable option at median price of just over $400,000.
At the current pricing for units, Jeremy Sheppard of DSRscore.com.au says Newtown is ripe for the picking, as it’s showing all the characteristics of a suburb about to emerge from a flat period while remaining relatively affordable.
Where to buy: Along Georgina St
Avoid: Close to the train line and near Stephens cemetery