New Norfolk Property Factsheet 2nd Half 2018
Compared to the Derwent Valley Local Government Area (LGA), houses in New Norfolk can be secured at a more affordable price, which is good news for first home buyers looking to enter the market. Now is the time to secure a dream property in this lucrative property market.
The New Norfolk property market is booming having recorded a median house price of $217,500, which represented an annual price change of 1.2% for the past 12 months to Q2 2018. At the same time, the median price for vacant residential land was $84,000, with annual growth of 20.0%. Over the same period of time (Q2 2017 - Q2 2018), house prices in the Derwent Valley LGA grew by 16.3% to $250,000, while land prices softened by - 1.2% to $84,000.
Over the past 12 months to Q2 2018 average vendor discounting for houses tightened and pivoted to 1.0%, suggesting sellers are achieving offers above their first asking price. New Norfolk has a high demand for houses and has, for the first time in the past 24 months, become a sellers’ market. This is further confirmed with average time to sell falling by -5.7% to 43 days. Buyers need to act fast to secure attractive opportunities.
New Norfolk house median rent grew by 10.3% to sit at $320 per week, while units grew by 50.0% to $270 per week. Stock on the market increased for both houses and units, thus the increase in rental prices were due to real uplift in value rather than due to scarcity. Investors are benefiting from rental yields of 5.0% (house) and 7.0% (unit), well above Hobart City’s returns, at 4.3% and 6.1% respectively.