Newcastle’s sporting fortunes are dwindling, but not the local property market: HTW

While Newcastle’s sporting fortunes are dwindling, the same can’t be said for the local property market.

With Sydney’s market in decline, many expected Newcastle to shortly follow, a prediction that has not yet occurred, according to the June report from valuation firm Herron Todd White.

A major rejuvenation of the CBD, a mining sector recovery and a strong tourism push are just some of the factors contributing to Newcastle’s growing economy.

Generally, with a strong local economy, the property market is strong and this is certainly the case at the moment with Newcastle.

"Even though the Sydney market is cooling off, it is still the most expensive in the country meaning investors are still attracted to Newcastle because of its size, cheaper prices and proximity to Sydney."

"These investors are still the strongest players in the local market with their demand for property still high" suggests the HTW valuers. 

There are a number of apartment blocks being built across the CBD and most of these apartments are sold off the plan as soon as they become available, with one local agency reporting that they sold an "entire block within a week", noted the report.

A recent auction in Bar Beach saw a home advertised with a price range of between $2.8 million and $3 million.

The property sold for $3.5 million at auction with eight bids amongst four registered bidders.

While this property is in Newcastle’s prestige market, agents are reporting that average homes are still not lasting long on the market and vacant land in the outer developing suburbs is still selling fast.

There is no doubt the market is still strong but there is certainly caution in the air, suggests the report.

Agents are seeing fewer numbers at open homes and the number of apartments being built in the city has some experts believing we could end up with an oversupply situation similar to that seen in some of the major metropolitan areas around the country.

Others still believe Newcastle is too directly connected to Sydney’s market for its decline not to eventually be passed on.

"It seems however at this stage that the Newcastle market does not rely as strongly on Sydney as the Knights do on Mitchell Pearce."

The valuers suggest that, "although the Knights may have crashed due to his loss, the Newcastle’s property market seems to be weathering the storm."