NEW: Best Buys Suburbs Under $500k

Newcastle Market Update

Suburbs included in this market report

Adamstown – Adamstown Heights – Bar Beach – Beresfield – Birmingham Gardens – Black Hill – Broadmeadow – Carrington – Cooks Hill – Elermore Vale – Fern Bay – Fletcher – Fullerton Cove – Georgetown – Hamilton – Hamilton East – Hamilton North – Hamilton South – Hexham – Islington – Jesmond – Kooragang – Kotara – Kotara South – Lambton – Maryland – Maryville – Mayfield – Mayfield East – Mayfield West – Merewether – Merewether Heights – Minmi – New Lambton – New Lambton Heights – Newcastle – Newcastle East – Newcastle West – North Lambton – Rankin Park – Sandgate – Shortland – Stockton – Tarro – The Hill – The Junction – Tighes Hill – Wallsend – Warabrook – Waratah – Waratah West – Wickham – Woodberry.

Market Conditions And Prices

The Newcastle housing market peaked back in April 2022. Since then the 3-month rolling median has dropped from $925,000 to $900,000. This is still 11% up on median this time 12-months ago. Market conditions, measured using total months of stock, continues to ease. As of July 2022 the Newcastle Sa3 has 2.3 months of stock, which is still very low. This has increased from 2.1 months in June. As inventory levels continue to rise, it appears the month on month price drops of around 1% are likely to continue.

Newcastle would still be considered a strong sellers market with conditions easing. Newcastle has a solid average monthly sale volume with 41 average house(s) sold per month. The time taken to sell a house (days-on-market) currently is 28. This has increased from 23 days 12-months ago.

The current unit market for Newcastle would still be considered a sellers market with conditions relatively stable compared to 12-months ago. Newcastle has a solid average monthly sale volume with 15 average units(s) sold per month. The time taken to sell a unit (days-on-market) currently is 33. This has increased from 29 days 12-months ago.

An increasing number of new unit stock is entering the market, which includes many premium apartments with views. This is pushing inventory levels a little higher to 3.3 months, which is 20% up from 3 months ago. The increase in inventory levels for units is telling us a slightly different story to median price movement. Median unit prices have not yet peaked and currently sit at $710,000. Whilst new premium stock continues to sell in decent volumes, the median price remains an incomplete view of price trends. Using the Newcastle Sa3 data, we estimate a 19% change in median sale prices in the last 12-months.

Most Common Price Segments

  • Across the total market we see suburb house price medians ranging from $5.5M down to $545k. The most common price bracket for houses is between $750k to $1M.
  • For units we see prices range from suburb medians of $1.2M down to $440k. The most common price range for units is between $500k and $750k.

 

Key Risks

  • Prices easing – modest month to month falls now likely

Key Opportunities

  • Buyers should take a look at infrastructure projects approved or planned for the area. Newcastle appears to be a hotspot for several new projects. Check out the Newcastle City Council,  Infrastructure Australia and NSW State Government websites.
  • Buying the right property at the right price is key for those seeking good yields. Don’t buy without using a local valuer.
  • Ongoing population growth with Sydney buyers still keen.

Rental Market

  • Vacancy rates for the area are currently 1.21% with 8 additional vacant properties compared to a year ago.
  • The median house rent price for Newcastle is $575. Using the Sa3 regional data, we estimate a 13% change in median rent prices in the last 12-months. Rents for houses across the Newcastle market have increased by $65 in the last year. Houses listed for rent are expected to stay advertised for around 15 days on average.
  • The median unit rent price for Newcastle is $500. Using the Sa3 regional data, we estimate a 11% change in median rent prices in the last 12-months. Rents for units across the Newcastle market have increased by $50 in the last year. The median unit rent price for Newcastle is $500. Units listed for rent are expected to stay advertised for around 16 days on average.
  • Estimated average rental yields for Newcastle Sa3 is 3.29% for houses and 3.85% for units. Higher yields than this area median can be readily found.

Listings

Top 40 Streets - Mayfield

Mayfield remains a popular suburbs for owner-occupiers and investors. Houses can still offer yields of over 5% and inventory levels remain low at just above 1 month. Here are the top 40 streets based on our new report.

  • HIGHFIELD STREET
  • CARRINGTON STREET
  • HANN STREET
  • ACKERON STREET
  • VINE STREET
  • CREBERT STREET
  • LIGUORI COURT
  • AVON STREET
  • WOODSTOCK STREET
  • CORONA STREET
  • INGALL STREET
  • BULL STREET
  • IDA STREET
  • HAVELOCK STREET
  • CHURCH STREET
  • FAWCETT STREET
  • USK STREET
  • ANTILL STREET
  • BARTON STREET
  • JAMES STREET
  • PARK STREET
  • CROYDON STREET
  • JOHN STREET
  • VILLIERS STREET
  • WYVERN STREET
  • SECTION STREET
  • KERR STREET
  • ROBERT STREET
  • THOMAS STREET
  • MYOLA STREET
  • SUNDERLAND STREET
  • GAMACK STREET
  • HANBURY STREET
  • SOUTHON STREET
  • BARBER STREET
  • NILE STREET
  • REGENT STREET
  • MENA STREET
  • WARATAH STREET
  • VICTORIA STREET

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