Sydney was once the property capital of New South Wales. It was seen as the best place for real estate and interesting properties for a number years. While there are still many that will stay put and continue to put their money into this major city, hedging their bets if you will, others have begun to see the light in a sunny destination a little further up the coast. Newcastle is a harbour city that is starting to gain interest, taking attention away from Sydney and providing a new opportunity for keen investors.
The first appealing element to Newcastle over Sydney is simple – it is all about the most recent numbers.
Newcastle property growth is not that big a gamble for cautious new investors when we look at the important numbers here. In 2016, the city saw house prices rise by 9.3% as the city rose in value. This represented a significant increase on the previous year, and those with their eyes out for the next big thing soon saw which way the wind was blowing. Furthermore, Sydney only saw an increase of 2.1%, suggesting that the bubble had indeed burst. At the end of 2016, the median house price in Sydney was as high as $1.07 million, far too much for any first-timer or anyone keen to take a risk on something new. Newcastle, meanwhile, was around half that at $530,000. This cemented the city as a much more enticing prospect to anyone looking to make an investment – without too much at stake. This figure was mildly higher then the regional average of $440,000. Therefore this is not only an affordable area by comparison, it is one with a clear buzz surrounding it.
There are a number of factors about Newcastle that makes it so appealing right now for investors.
There is the sense that a property bought here will soon rise in value, with guaranteed Newcastle property growth, and that investors will enjoy a great return. There are a number of reasons for this. Many investors are keen on the potential of Newcastle because of its rental returns and the ongoing developments within the city. Many highlight the current building boom for inner city apartments, which are a must-have investment in the areas. Not only are there the properties to attract buyers, there is a focus on the improvement of infrastructure. Improvements to a new light rail system and significant rezoning ventures across the city all add to the appeal. Then there is the issue of the location. Newcastle is also a waterside location, with some great properties and views, and it is just 160km away from Sydney. Close enough for trip to the major city and its perks; far enough away to have its own identity and charm.
We also cannot forget that Newcastle has the second largest population in New South Wales, so there are plenty of potential renters in need of an affordable home. This means plenty of opportunities for a great investment while the chance remains. Those that buy into the Newcastle market can tap into the potential for Newcastle property growth while it remains affordable and profitable. This is clearly a city on the up, and many investors are catching on.