After prices tapered through the second half of 2023, there was a brief window where some buyers might have found opportunies in Sydney, traditionally among the world’s most expensive, but normal service has mostly resumed.
Many NSW residents are simply being priced out of the Sydney market, and are turning to areas further afield.
An increasingly viable alternative is the state’s second largest city. Newcastle has always been known for being the largest coal port in the world, but as Chad Dunn, Buyers Agent and Founder of Chad Dunn Property Buyers, points out, recent development means it is evolving into a more sophisticated city.
“They used to say build the accommodation and the businesses will follow and we are seeing this come to fruition in Newcastle,” Mr Dunn told Savings.com.au.
“Formerly, the city centre was cut off from the waterfront when the trains divided the city to the water, but this has all changed with the train station being moved and trams brought in.
“The area is now thriving faster than most regional cities in Australia.”
In conjunction with him and Lloyd Edge, Founder and Director of Aus Property Professionals, we’ve picked out some Newcastle suburbs that could be ripe for big growth in 2024.
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Median price and rent data from Realestate.com.au, correct as of December '23.
Mayfield (2304)
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Median price: $810,000 for houses, $601,500 for units
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Median rent: $600 pw for houses, $450 for units
Mayfield has traditionally been an industrial area, hosting several steel works and iron manufacturers over much of the 20th century. While there are still some steel mills in Mayfield, the major BHP steelworks was closed in 1999, and the suburb has since reinvented itself as a go-to residential spot.
In 2016, local buyers agency Arnold Property dubbed Mayfield ‘Newcastle’s favourite suburb', but property remains attractively priced even compared to other suburbs close to the centre of Newcastle, let alone equivalent areas in other cities.
For Mr Edge, the underlying drivers of demand are solid, and the suburb looks a good bet to continue to attract buyers.
"Mayfield's proximity to the CBD, diverse community, and affordable housing options make it a desirable location for first-home buyers and young professionals," Mr Edge told Savings.com.au.
Mayfield also made its way onto REA’s hot 100 suburbs for 2024, with commentators highlighting its appeal to those craving both a city lifestyle and a “coastal vibe”.
Wickham (2293)
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Median price: $950,000 for houses, $730,000 for units
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Median rent: $650 pw for houses, $633 for units
As the Newcastle city centre develops, naturally demand for higher density housing will continue to increase.
Mr Dunn, a local himself, says high rise, high density unit blocks in the city centre are concentrated in three areas. East Newcastle, on the waterfront, the premium end, the city centre itself, with mostly established units between 10 and 30 years old, and the west end, where the new developments are starting to emerge.
“The West end, Newcastle West and Wickham…is where the new train station terminates,” he said.
“There is a hive of activity, but most unit sales are still off the plans. This is where buildings will have the highest height limits.”
For first home buyers and downsizers, these new units could be a way to bet on the continued prosperity of the Newcastle CBD.
Adamstown Heights/Kotara (2289)
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Median price (Adamstown Heights): $985,000 for houses, not enough price data for units
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Median price (Kotara): $925,000 for houses, $650,000 for units
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Median rent (Adamstown Heights): $690 pw for houses, $550 for units
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Median rent (Kotara): $650 pw for houses, $585 for units
The 2289 postcode encapsulates Kotara, Adamstown and Adamstown Heights, and was identified by both of our experts for its growth potential.
"Adamstown Heights offers a family-friendly environment close to Newcastle's business district, making it an attractive option for a range of buyers,” Mr Edge said.
For Mr Dunn, one of the area’s major advantages is the Kotora Westfield centre, which he called the “major shopping centre district for the Newcastle area and Broadmeadow.”
Hamilton (2303)
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Median price: $905,000 for houses, $650,000 for units
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Median rent: $630 pw for houses, $490 for units
Hamilton was the other Newcastle suburb to make it onto the REA hottest 100. About 4 kilometres west of the city centre, Hamilton is a traditionally blue chip suburb, like the Brisbane suburb of the same name.
Property in Hamilton NSW though remains reasonably priced compared to other suburbs near the Newcastle city centre, despite boasting Beaumont Street, one of the area’s major entertainment precincts.
Anna Bay (2316)
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Median price: $885,000 for houses, not enough price data for units
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Median rent: $580 pw for houses, $590 pw for units
While there are plenty of opportunities for buyers in the inner city suburbs of Newcastle, for Mr Dunn, the area in the region that is likely to see the most capital growth over the next few years is Port Stephens. He said 2024 could be the perfect time to get in an area he is in “no doubt will see some major upswing in the years ahead.”
“A lot of people do not realise that Newcastle and Port Stephens have their own airport flying to other states daily. What they also do not realise is that this airport is starting international flights mid-2024. An influx of tourists will impact property prices and supply and demand,” he said.
“Anna Bay is the closest surf beach to this airport and is a sleepy little surf village too often overlooked.
"It's not the next Byron Bay but it will be something special and we will no doubt see some major upswing here in the years ahead.”
Aerial shot of Anna Bay's Biruba Beach
Soldiers Point (2317)
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Median price: $1,045,000 for houses, $793,750 for units
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Median rent: $580 pw for houses, $520 for units
Anna Bay offers more chances for entry level buyers to bet on the Port Stephens area, but Soldiers Point was Mr Dunn’s tip for those buying at the premium end of the market.
“Soldiers Point is the closest Marina and access point to the Port Stephens waterways and it has always held its prices well,” he explained.
Morisset (2264)
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Median price: $720,000 for houses, $500,000 for units
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Median rent: $550 pw for houses, $480 pw for units
South of Newcastle is Lake Macquarie, the largest coastal saltwater lake in the country. The coastal suburbs at the southern end of the lake, including Brightwaters, Bonnels Bay and Morisset, are just a 90 minute drive from Sydney.
For Mr Dunn, not only is the area attractive for those who don’t want to stray too far from the capital, but the lake is increasingly attracting Sydney residents northwards.
“The area has a very proactive council that is unlocking a lot of value with new housing estates and leisure projects that are attracting the hordes coming out of Sydney that enjoy the boating and lifestyle,” he said.
“It is understandable that now that the Central Coast has already one through its boom years and become an extension of Sydney, that Lake Macquarie would be next to benefit from the shift north not too far from Sydney.”
He called the region around Morisset the “epicentre” of the region, highlighting the award winning Trinity Point Marina on Morisset point.
Suburbs to build in Newcastle
Finally, in a city that could be poised for rapid growth in the coming years, it would be remiss to not mention the development opportunities. The Newcastle Council has plans for some major zoning changes with the land around seven train stations, in Newcastle and Lake Macquarie, to be rezoned for higher density housing.
“In these areas I would say that Broadmeadow, Booragul and Kotara should be on every investors radar,” Mr Dunn told savings.com.au.
Booragul (2284)
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Median price: $688,500 for houses, not enough data for units
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Median rent: $482 pw for houses
Broadmeadow (2292)
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Median price: $887,000 for houses, $650,000 for units
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Median rent: $650 pw for houses, $520 for units
Header Picture by Michael, Biruba Beach from James McTaggart, both on Unsplash
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