New Norfolk Property Market Update 1st Half of 2020
In Q4 2019, New Norfolk recorded a median house price of $316,000, and a median vacant land price of $85,000. This represents annual (Q4 2018 – Q4 2019) median price growth of 19.2% for houses and 24.6% for land. Total house sales markets slowed annually, down by -31.3% to 22 sales while land sales increased by 20.0% for to 6 sales in Q4 2019. Limited land sales make this data volatile, however the market presents excellent value. There is a shortage of houses on the market, now is the time to capitalise on price growth.
Average vendor premiums between Q4 2018 and Q4 2019 have slightly increased for houses to 4.1% and to 2.1% for vacant land. Market conditions in New Norfolk continue to favour sellers, where buyers are required to negotiate above the initial listing price. This makes now an ideal time to sell in New Norfolk.
Over the past 12 months, house rental yields in New Norfolk increased to reach 5.6% in December 2019. This suggests the house rental market is in a healthy position despite a slight softening in the number of houses rented (by -20.0% to 16 rentals in the 12 months to Q4 2019).
4+ bedroom houses provided investors with +18.0% rental growth annually, achieving a median rent of $410 per week.
New Norfolk recorded a vacancy rate of 0.3% in December 2019, which extremely tight and is even lower than Hobart’s 0.7% average. New Norfolk’s vacancy rate is significantly under Real Estate Institute of Australia’s healthy benchmark of 3.0%, which confirms there is a very strong rental demand for properties in New Norfolk. This is a point of confidence for investors, as it suggests quick occupancy for rental properties, and one that should be taken advantage of.