New Farm has had a A very good year for property investment returns compared to the rest of QLD, giving investors a capital gain of 17.84% to date .
The five-year average increase in median property values for New Farm,4005 has given property investors a potential capital gain of 20.00% across each of those five years.
At number 51th of QLD’s most discounted properties, New Farm is in the bottom 10% of the state/territory when listing in order of most discounted to least.
In the last year 75 properties changed hands in New Farm, which puts it as the 343th most active market in QLD when comparing the number of sales per suburb.
With the median price for a house in New Farm being $1800000 and the advertised rent reaching $895 the gross rental yield for property investors calculates out to be 2.59%
New Farm is in the TOP 20% in QLD when comparing median price capital growth over the last year. New Farm gave property investors a very good capital gain figure when compared to the rest of the state, with 13.27%.
Across a shorter period, New Farm, 4005 has seen a median price increase of 8.47% over the last quarter.
State is the 4th most discounted Australian state or territory in this month’s figures with an average Vendor Discount of -4.79% offered to property buyers. Sellers in New Farm itself are offering an average vendor discount of -5.76% to real estate investors.
New Farm is 333th on a list of best yielding suburbs for rents in QLD with a 3.45% return
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New Farm is an inner city suburb of Brisbane with excellent public transport option and an abundance of restaurants and shops. Formerly dominated by Italian migrants, the suburb has since undergone gentrification and has become one of the most desirable suburbs in Brisbane.
Josh Brown, research analyst with PRDnationwide says the suburb is particularly attractive to younger residents because they are well-positioned and are close to the Brisbane CBD.
“There’s been a lot of developments in these areas and they’ve become trendy suburbs with lot of cafes and bistros and they’re close to shopping district and features that appeal to young professionals,” he says.
Median house price stayed stagnant up until around 2002 when it jumped to more than double in 2005. Price peaked at $1,140,000 around June 2008. It fell sharply in 2009 but it has bounced back since to its current level.
Looking ahead, Brown says future growth in house price might be slower than the rate it has recorded over the past 30 years because growth has already been substantial growth and there’s already significant amenity in the area.
“Unless there’s a large scale development going into the area that doesn’t impede the existing residence that can affect value, then growth would be lower than the previous decades.”