Why you should invest in Newcastle – part 3
Located 160km north of Sydney’s CBD, the harbour city of Newcastle has so far escaped the astronomical prices that Sydney’s real estate market has become famous for.
However, with $6.5 billion in NSW Government funding set to reinvent this once industrial port city, Newcastle is on the verge of significant property price growth.
In this three-part series, we explore the reasons Newcastle is becoming the next investment hotspot – and why you should keep this city firmly on your radar.
Missed Part 1? Read it here: World class infrastructure: the future looks bright for Newcastle
Missed Part 2? Read it here: World class infrastructure: the future looks bright for Newcastle
Part 3: Solid growth prospects: Newcastle is delivering
As real estate prices in some capital cities continue to skyrocket, savvy investors have been turning to regional areas to stretch their investment dollars further. Nowhere is this more evident than in Newcastle, where strong growth is already afoot. In fact, property experts have identified Newcastle as being one of the five best locations to invest in an apartment in Australia.
Significant growth ahead
According to BIS Shrapnel’s Australian Housing Outlook 2016–2019, Newcastle experienced solid price growth over the past five years to June 2016, averaging 6.1% per annum (for houses and units combined).
Looking ahead, median house prices in Newcastle are forecast to continue rising by a cumulative 12% by June 2019, or around 4% per annum, to a median price of $550,000.
With Newcastle’s median house price just 48% of Sydney’s at June 2016, the anticipated population growth in Newcastle will add demand to the local residential market.
Newcastle’s population is tipped to grow by 65,000 over the next 15 years, driven in part by people fleeing the rising costs and congestion in Sydney. Newcastle also offers first home buyers a more realistic alternative to the Sydney market.
In terms of rental properties, in August 2017, vacancy rates were below the 3% balanced market rate at 2.7%, according to REINSW. In suburbs around the University of Newcastle, it has been reported that vacancy rates are close to 0%, with students struggling to find rental accommodation.
Infrastructure and innovation behind growth
The momentum of Newcastle’s growth is also being driven by the city’s focus on infrastructure development and innovation.
The NSW Government has committed more than $650 million to its Revitalising Newcastle program. The program aims to transform the city centre by improving transport, renewing public spaces, creating job opportunities and building affordable housing to cater to a growing population and tourism industry.
And the recent opening of the $90 million Newcastle Courthouse and NeW Space, a $95 million city campus for the University of Newcastle, in addition to plans to install free WiFi and smart technology throughout the CBD, are strong signs that Newcastle is ready to shake off its industrial past.
What does this mean for you?
With attractive property prices and strong growth forecasts, Newcastle represents a truly exciting investment opportunity. But the time to get in is now, before the completion of major infrastructure programs drives property prices further.
Want to know more?
We have a number of exciting investment opportunities coming up in Newcastle soon. Please contact us today to find out how we can help you build wealth through smart property investment.
