Newcastle apartment market so hot right now: Herron Todd White

Units in Newcastle are so hot right now, according to Herron Todd White, who see the demand driven by the number of recently-completed projects that began in 2013 and 2014.

Herron Todd White's September Month in Review found prices agreed to at the time have increased significantly creating the "holy grail" for off the plan purchasers and property speculators. 

The review noted that this is not always the case in Newcastle and only comes around during the growth phase of the market. 

"Speculators who purchased units off the plan in 2006 and 2007 had to wait for quite a period before there was capital growth joy," the report noted.

"A recent conversation with a leading local real estate agent revealed all but several units were pre-sold in a 90 plus unit complex with 10 purchasers on a waiting list should any initial purchasers wish to cash out prior to completion of the complex. This highlights the strength of the unit market, especially towards the more affordable end of the market.

"If we were to look at the smaller unit development market, the mums and dads level of undertaking, it appears that activity in this sector is up from previous levels significantly. Anecdotally the number of valuations we have completed where development approval has been granted for three to five units is up significantly from 12 months ago."