SHORT SUPPLY DRIVES NEW FARM BOOM

INNER ring capital city property markets are booming in the second quarter and Brisbane is no exception, according to Raine & Horne.

The real estate company has reported strong sales growth in New Farm, as well as Coogee in Sydney and Karama in Darwin.

CEO and executive chairman Angus Raine says a number of factors are creating favourable selling conditions this season.

"The February decision to cut rates by 25 basis points has given some inner ring markets an additional edge, while a relatively early Easter and the impending school holidays is creating buyer urgency," Raine says.

"Our offices around the country are also reporting a significant shortage of stock for sale this autumn, with listings down by 10 per cent nationally compared to this time last year, which is great news for those owners considering a property sale."

A four bedroom grand colonial style home in New Farm recently fetched $1.31 million at auction, after attracting 60 interested parties and six registered bidders.

Raine & Horne New Farm principal Lee Paul says the shortage of stock in the area will continue to bolster prices.

"Inner city New Farm is always a sought-after location thanks to its proximity to the Brisbane CBD, which is just two kilometres away," Paul says.

"Therefore when a house comes onto the market, it's hugely popular with families seeking a property close to the city.

"It will be a sellers' market this autumn and owners who take their property to market can expect to be rewarded with a rapid sale and a good price."

Paul says the shortage of houses in the suburb is a key selling point, with apartments making up 76 per cent of properties.

Suburbs within 12 kilometres of the Sydney CBD are piquing buyer interest, with a Coogee apartment going under the hammer for $1.43 million.

Karama and Malak in Darwin have been named as suburbs to watch, with thousands of workers expected to flood in for the next stage of a large LNG project.