Research deems Newtown houses ‘undervalued’ and poised for price growth

Houses in Newtown have been deemed “undervalued” in new property research, with homes priced an average $293,000 below neighbouring suburbs offering similar housing and amenities. The research from property analytics group SuburbData showed the suburb’s median price is sitting noticeably below what its supply-and-demand fundamentals suggest it should be worth. This did not mean Newtown was considered “cheap”. The research defined an undervalued suburb as one where homes trade at a discount to comparable nearby areas. SuburbData noted discounts like this often followed a period of weak or subdued growth, with a later pick up in buyer demand and reduction in available stock. That recent change in the supply and demand dynmic suggested prices may soon recover. MORE: Maccas savaged for new move in Newtown battle Newtown homeowners Ben and Kirsty Winning have been in their Newtown home six years and will sell at auction this weekend. Picture: Rohan Kelly Key signs of Newtown being “undervalued” were lower prices than similar neighbouring suburbs, a smaller gap between house and unit prices, signalling better value for house buyers, and lagging price growth compared with surrounding area...