Why the Newcastle property market is one of the hottest in NSW
With Newcastle house prices rising twice as fast as the rest of Australia, the big question is why is the demand for Newcastle property so high? In this article, we’ll look at both push and pull factors that are drawing more people than ever to invest in the Newcastle real estate market.
What’s causing the Newcastle property market boom?
Newcastle and other regional centres like Wollongong have seen huge explosions in demand for housing and subsequent booms in property prices. In fact, Newcastle and Lake Macquarie property prices rose by nearly 25% from 2020 to 2021, with prices surging by more than 8% from May to July 2021 alone. But what has caused this recent surge in demand for the Newcastle real estate market?
Sydney house prices. Sydney’s median house prices increased by 18.4% in the year to June 2021. With median house prices of $1.41m, or a staggering 54.3% higher than the national average, many Sydneysiders have been simply priced out of the housing market in Sydney. According to NBN News, Newcastle and Lake Macquarie are top of the list for people leaving capital cities, including Sydney.
Remote working. As over 40% of Australian workers worked from home during 2020 and 2021, up from 28% pre-March 2020, many people began to question the need for living and working in big cities. Many Australians decided to leave the big smoke for greener pastures, with both Newcastle and Wollongong popular choices due to their relative proximity to Sydney. With Sydney house prices sitting around the $1.5 million dollar mark, Newcastle and Wollongong’s far lower median house prices of around $750,000 were too good to pass up now that working in the office isn’t a necessity.
Seachange. Newcastle and Lake Macquarie properties offer the classic seachange that people living in larger cities want. In 2020 a net total of 43,000 Australians moved away from capital cities to regional areas, including Newcastle. That’s more than a 100% increase on the number from 2019. People are increasingly choosing to live and work in areas that offer a better quality of life with space to move.
Waterfront properties. The demand for waterfront properties is steadily driving up the value of lakefront properties throughout the Lake Macquarie region. As the largest coastal saltwater lake in the southern hemisphere, there’s plenty of waterfront property available for those who can afford it. One lakefront property at Coal Point rose in value by almost 50% over the space of a few years to just under $3 million in 2021.
Urban renewal. In recent years Newcastle has been the home of a number of urban renewal initiatives which has seen the area become more desirable to live and work. The Newcastle Smart City Strategy, for instance, has helped Newcastle become a “smart city” with the aim of drawing more innovation, creativity, and high-value professional people along with improved liveability. Meanwhile, the Port of Newcastle and Cruise facility upgrades are set to boost the industrial and tourism sectors of the harbourside city.
Thinking of investing in the Newcastle real estate market?
There’s no doubt that the Newcastle and Lake Macquarie region offers an idyllic lifestyle, and properties for sale and rent are both in consistently high demand. There’s never been a better time to own property in Newcastle and Lake Macquarie with booming urban renewal and demand for desirable properties to rent and buy throughout the region growing steadily over recent years.
If you want to get in on the Newcastle property boom we can help make it happen fast. At BuidFast we specialise in Complying Development Certificates (CDC) approved properties which skip the red tape of council approval with fast, fuss-free new build properties ready for tenants.
We help obtain CDC’s to avoid council altogether, having a menu of CDC plans already designed to suit any complying block of land and by utilising a tested network of efficient professionals & contractors. View our range of timeless, in-demand new home designs and get inspired. Your Newcastle property could be tenant-ready in just 9 months.