As we analyse the current property market trends, it is evident that certain areas have emerged as undeniable property hot spots. These locations exhibit a combination of factors such as growing infrastructure, increasing job opportunities, and a vibrant community atmosphere.
From our perspective, we anticipate that investors and owner-occupiers in the residential and new development property market will be keenly interested in directing their investments towards these promising regions. These hot spots offer not only the potential for substantial returns but also the prospect of long-term value appreciation.
As we guide our clients through their real estate journey, we believe that focusing on these areas will not only align with their financial goals but also position them at the forefront of the next wave of real estate success.
Newcastle | Off-the plan apartment market
The new development and off-the plan apartment market across Australia is performing generally well and maintaining prices compared with older style homes and units. This is largely due to the rise in construction costs and the reluctance of building companies to take on construction projects on small margins. Whilst some material costs have come back to pre-covid levels the cost of plaster products, aluminium windows and doors, glass freight and electrical equipment is still rising.Overall construction costs in all capital cities have increased between 10 and 14% for the year ending in March 2023.
This coupled with the fact that all capital cities and most regional hubs are still grappling with systemic undersupplied housing markets. With reduced stock under construction and coming through the planning pipeline it is widely expected that a chronically under supplied housing market will be the norm for the foreseeable future. In addition to this with the median cost of a new house and land package out of reach for most first home buyers it is expected that many will choose an apartment as their first home due to the increased affordability and ability to buy up to $800,000 and receive government grants and incentives.
The Newcastle apartment market has boomed in recent years with the new developments such as the East End by Iris Capital and the Honeysuckle precinct going through rapid transformation and capital growth. Given the proximity to the beach and the harbour, prices still remain affordable and investors are seeing value when compared with the prices of the Eastern suburbs of Sydney.
Newcastle West is also going through massive transformation, expect to see rapid gentrification that will enhance the lifestyle benefits of its residents and attract higher quality service and entertainment type businesses closest to the highest pockets of density. Currently in Newcastle West you can still purchase an off-the plan, one bedroom apartment with parking for around the mid $500’s and a two bedroom apartment with ensuites starting from the mid to high $700’s.
Raymond Terrace | $2B M1 Motorway extension
A new infrastructure program can do more than just bring jobs and strong employment to an area. For instance the M1 extension to Raymond Terrace will allow residents to get to the M1 quickly and easily allowing for better access to the north west along the Hunter Expressway and south to the Central Coast and Sydney. The extension will also alleviate congestion along busy Hexham Road and allow trucks to transfer north without using the New England Highway and the Hexham Bridge. With interchanges at Black Hill, Tarro and Tomago the benefits this project will bring to these communities will enhance travel times and connection to services.
Currently Raymond Terrace is one of the most affordable areas to live within a 25km radius of Newcastle which is why we expect excellent long term growth for these areas and a solid short term gain from when works begin to completion of the capital project. Currently R3 Medium Density land is abundant and affordable in the Raymond Terrace area. With this in mind, we see strong opportunities for developers to acquire and land bank sites for the future whilst lodging and gaining planning permission through council.
Lake Macquarie region | Beachside or lake view land subdivisions
The coastal regions of Newcastle and Lake Macquarie are witnessing a surge in demand for properties in close proximity to the water with beach access or views. The scarcity of such opportunities, coupled with the high demand and recent sales results in Catherine Hill Bay further highlight the desire of many individuals who are actively seeking beachside property in the Lake Macquarie region.
For many residents of the Newcastle district, the dream of owning beachfront land remains unattainable as these properties are few and far between and quite often financially out of reach. Obtaining beachfront or lakeside property at a reasonable value proposition requires savvy market awareness and a proactive approach. To capitalise on such opportunities, potential buyers must stay informed and have an understanding of what constitutes good value and be able to make quick decisions when these premium properties become available.
The Lake Macquarie region’s desirability is further amplified by recent investments in infrastructure, such as road improvements and upgrades to sporting facilities. These developments contribute to the growing appeal of the area as a prime residential destination which has played a part in Lake Macquarie being ranked as the fourth most desirable region in Australia and the number one choice in New South Wales for individuals seeking to relocate from major cities by the Regional Australia Institute. This recognition, coupled with the escalating cost of living in Sydney, has spurred a noticeable trend of people seeking a change in lifestyle by moving to Lake Macquarie which is expected to continue with projections indicating a population surge to 252,791 residents by 2041. This anticipated growth enhances the region’s attractiveness and reinforces the investment potential for those considering property acquisitions in the area.
Speak with our Division team today to learn more, we are always happy to help.
