QLD has seen average median house prices change by 0.38% which means that New Farm, 4005 has done well for property investors by showing a capital gain of 1.66% over the last year
New Farm,4005 was ranked 641 in Australia by increase in median property value over the quarter.
When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in New Farm, 4005. Typically our figures indicate that -6.75% is being offered, which puts this QLD suburb at 1429th most discounted overall in Australia.
In the last year 70 properties changed hands in New Farm, which puts it as the 329th most active market in QLD when comparing the number of sales per suburb.
A $750 per week rent on the median house gives suburb investors a gross yield of circa 2.55%, without taking into account capital value appreciation, which has been averaging out at 5.84%.
Property value increases in New Farm have tracked just lower than the QLD average of -1.29% over the last 12 months.
While New Farm,4005 ranked number 116th in QLD for increase in median house value (annualised) increase, it is ranked 174th over the last 5 years.
LACK OF BUYER INTEREST may well be the reason that New Farm is offering property investors an average of -6.35. This rate of discount on properties puts Suburb at number 199th in terms of most discounted suburbs in QLD
Using the current median advertised rental of $420 and the average annual increase in value of a median property of 2.20%, investors should hope to achieve an overall return of 3.81%
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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.”