Local Hotspot: Newtown

November 24th, 2023 - by Brad Gillespie

With its character-filled streets, amazing cafe and restaurant scene and artistic vibe, Newtown is in high demand.

In fact, over the past couple of years, it has been one of Sydney’s genuine property hotspots.

We take a closer look at one of the inner city and inner west’s most desirable suburbs.

Spotlight on Newtown

When it comes to creativity, Newtown has it all: an eclectic vibe; a great cafe, restaurant and bar scene; plenty of quirky shops and bookstores; performance spaces; art galleries; street art; and an iconic main street (King Street) with an independent cinema.

It’s also centrally located and has excellent transport links with its own station and great bus connections.

One of the reasons for Newtown's young and funky vibe is that around 41% of residents are university students. It’s also home to Newtown School of Performing Arts, making it a vibrant education mecca.

As a suburb, it’s popular with professional singles, couples and young families, too. And it’s also a haven for property investors, given that 57.6% of its inhabitants are renters.

Record-breaking sale shows Newtown’s emerging prestige market

In August this year, Domain called Newtown “one of Sydney’s most desirable suburbs” after two terrace houses sold for $5.87 million and $6.85 million, respectively.

Two months ago, we co-listed 198-200 Australia Street, Newtown, with Ben Collier of The Agency. This designer five-bedroom warehouse conversion known as ‘The Bakery’ set a new Newtown suburb record when it sold for $13.5 million.

This more than doubled the previous suburb record we achieved when we sold the same property in September 2020 for $5.8 million. The sale also beat the suburb records for neighbouring Erskineville, Alexandria, Surry Hills, Glebe and Annandale.

Beyond being an incredible result in and of itself, the sale demonstrates the broadening of Sydney’s prestige property market into areas including Newtown. It also shows the evolution of Newtown’s desirability to a range of demographics.

But it isn’t only about the prestige market. The good news is that you can still buy a small house or an excellent apartment for around $1.5 million in Newtown (roughly the same as the median Sydney house price).

The data on Newtown

Over the past 12 months, the median Newtown house price rose 3.2% to $1,755,000.

According to PropTrack data, Newtown’s popularity has been increasing, with 22 enquiries per house (a rise of 19% year-on-year) and nine enquiries per apartment (a massive 30% rise).

Although apartment values plateaued at $705,000 (down -4.5 % over the past year), yields are still strong, according to realestate.com.au, at 4.3%. That’s due in part to the median weekly rent rising 7.5% over the past year to $860 a week. Apartment rents have lifted 12% over the past 12 months to $550 a week.

In October, 1,597 renters competed for the 74 apartments on offer, with the median days on market for a rental just 14.

Breaking down the property types further, the story gets even more interesting, as this price growth chart shows:

Property type Median price* % growth over the past year*
One-bedroom apartments $625,000 -2.3%
Two-bedroom apartments $1,010,000 3.1%
Two-bedroom houses $1,516,000 0.4%
Three-bedroom houses $1,940,000 6.3%
Four-bedroom houses $2,307,499 -8.4%

* data from realestate.com.au 20 November 2023

Recent listings in Newtown

163 Wilson Street This truly unique three-bedroom character-filled home is zoned mixed-use. That’s because it features a versatile 35sqm gallery space in the old “Sal’s Corner” shop on the ground floor. The property is being auctioned on Saturday, 25 November 2023, with a price guide of over $2 million.

3/1 Gladstone Street A striking three-bedroom townhouse with parking that spans four levels, including a whole-floor master suite with study. This incredible property sold for $1,620,000 in June 2023.

20 Fulham Street This fully renovated four-bedroom, two-bathroom home in a sought-after street sold for $1,965,000 in March 2023.

34 Munni Street This stunning architect-designed three-bedroom, two-bathroom house called “Waring House” sold for $2.2 million in February 2023.

8/1A Gowrie Street This 72 sqm one-bedroom loft-style apartment in the “Attica” boutique warehouse conversion sold for $846,000 in February 2023.

Want more?

Thinking of buying, selling or investing in Newtown or Sydney’s inner city or inner west? Get in touch with my team today.