Is Newcastle the next hotspot in NSW’s booming economy?
Sydney’s booming property market is in the news headlines every single day. It has been a hotspot with soaring property prices for 5 years and counting. Whilst Sydney’s boom has been the major factor behind NSW’s economic performance, NSW’s other cities such as Newcastle & Wollongong have also had a significant impact, which has led to first home buyers thinking whether these regional cities are suitable for them.
Today we take a closer look at the NSW city of Newcastle.
Disclaimer: This article is general nature and should not be relied upon. FHBA is not qualified or licensed to recommend locations for your first home. If you do not know where you want to buy your first home you should speak to a licensed real estate professional such as a Buyers Advocate.
Some interesting facts and features of Newcastle:
- Coastal city approximately 162km’s from the Sydney CBD
- Second most populated area/city in the state of NSW with a population of over 300,000 people
- Famous for its coal, Newcastle is one of the the largest coal exporting harbours in the world
- It is surrounded by other popular areas such as Lake Macquarie, Maitland & the Hunter Valley
- Home to some of NSW’s best beaches for surfing, swimming & sunbathing; such as Bar Beach, Merewether Beach and many more…
Map of Newcastle and it’s surrounding areas
Newcastle’s property market
- The Median price for the Newcastle area is $530,000 – according to data from the Domain Group
- According to the Domain Regional House Price Report, Newcastle experienced house price growth in excess of 10% in 2016
- The First Home Owner Grant (FHOG) in NSW is currently $10,000 for first home buyers buying brand new property only
We look at three possible reasons why Newcastle is considered to be a hotspot in NSW:
1. New Light Rail Construction
“The 2.7km light rail project in the Newcastle CBD will provide a lot of benefits for the Novocastrians (people from Newcastle) as it will result in reduced congestion by operating with a capacity to carry approximately 1,200 passengers per hour.” said FHBA Co-Founder Daniel Cohen. “Not only will it provide benefits for future passengers, but this initiative by the Baird Government will create up to 6,500 jobs for the Newcastle region.”
Artists impression of the Newcastle Light Rail Link set for completion in 2019 (Source: Newcastle Herald)
2. Rezoning across the Newcastle City
Newcastle and its surrounding areas have traditionally be known for having larger than average lot sizes. “You are now seeing the Newcastle and Lake Macquarie Council rezoning parts of the area by allowing more subdivisions and by approving for granny flat development applications.” said fellow FHBA Co-Founder Taj Singh. “Whilst subdivision potential may mean prices in the area increase, it can also be seen as good news for first home buyers, as subdivisions will allow first home buyers to get access to smaller sized entry level blocks.”
In addition, areas such as Cameron Park & Maitland are in the midst of a construction boom which is contributing to the growth in jobs and GDP in the Newcastle region.
3. Population Growth prospects
With Sydney and the Central Coast region already experiencing fast growth in house prices, the Newcastle & Lake Macquarie region is seen as the next best opportunity for those aspiring first home buyers looking to go North of Sydney. “The construction boom and the increased land release taking place North of the Central Coast can be seen as evidence that the developers and the Government are expecting the population to grow in the Newcastle region.” added Taj Singh.
Speculation about a rail upgrade from Sydney to Newcastle or a bullet train from Sydney to Brisbane via Newcastle in the future may also help underpin the region of Newcastle.
Where can I find homes in/near Newcastle?
Brand New FHOG Eligible Homes
The map below shows our range of brand new property opportunities for aspiring first home buyers looking to buy in Newcastle and surrounding areas (all with FHOG eligibility!). Simply click on the map for more details on each option. Be sure to make an enquiry if you are interested and want to know more about these or other options!
Over the next few months, we will be launching a new first home buyer assistance program dedicated to first-timers looking to buy an established home. Every client will be entitled to a personalised service based on your goals and circumstances….no matter where in Newcastle (or Australia) you are looking to buy. Register your interest by clicking here now!
If you are looking for more information or if you have any questions, please complete the form below to speak to an FHBA Coach.