New Norfolk Property Market Update 2nd Half of 2019
In Q2 2019, New Norfolk recorded a median house price of $220,000, and a median vacant land price of $70,000. This represents annual (Q2 2018 – Q2 2019) median price growth of 7.4% for houses and 12.5% for land. Total sales in both markets slowed annually, down by -11.8% for houses to 30 sales and by -52.4% for land to 10 sales in Q2 2019. Limited land sales make this data volatile; however, the market still clearly presents excellent value to buyers.
Average vendor premiums between Q2 2018 and Q2 2019 have tightened for houses to 2.5% and widened to 0.5% for vacant land. Market conditions in New Norfolk continue to favour sellers, where buyers are required to negotiate above the initial listing price. That said there is now further discount in the vacant land market, thus a good time to buy.
Over the past 12 months, house rental yields in New Norfolk increased to reach 5.3% in June 2019. There has been a slight decline in total house rental market activity across the same time period, down by -33.3%. This suggest there is an undersupply of house rental properties, an ideal time for investors to enter the market.
4+ bedroom houses have provided investors with +23.5% rental growth annually, achieving a median rent of $420 per week.
New Norfolk recorded a vacancy rate of 0.2% in June 2019, indicative of an exceptionally high demand rental market. This has been the case over the past 2 years, with New Norfolk recording a lower vacancy rate than Hobart Metro.