Giving property investors a an average capital gain of 3.40% for the last year, Newtown, 2042 is the 2413th highest performer in Australia in this respect.
Over the longer term, Newtown has seen property prices show investors a 33.80% return over the last 3 years. This is worse than over the last 12 months
Property investors looking for a bargain in Newtown should be aiming for at least -6.35% off the asking price, which is the average vendor discount being achieved at the moment.
Newtown, 2042’s gross rental yield is 2.84%
Property investors who have had real estate in Newtown, 2042 should be relatively unhappy with this NSW suburb’s performance compared to the rest of the country. Over the last year it has seen median house prices decrease in value by -4.71%
While Newtown,2042 ranked number 440th in NSW for increase in median house value (annualised) increase, it is ranked 318th over the last 5 years.
Property buyers and investors in Newtown 2042 should be seeing an average reduction in asking price of around -4.92% . This means that Newtown is holding prices well when compared to other suburbs in NSW.
A $520 per week rent on the median house gives suburb investors a gross yield of circa 3.66%, without taking into account capital value appreciation, which has been averaging out at 8.11%.
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