Newcastle in midst of apartment boom as gentrification continues: HTW property clock
Newcastle occupies the peak of market position on Herron Todd White's latest residential property clock and staying ahead of the gentrification curve can prove profitable to investors, according to the valuation firm.
Newcastle’s persona in recent times has moved from a blue collar, working class port city to a trendy, beach-loving metropolis flourishing with bars, cafes and hip warehouse conversions.
Newcastle is witnessing a period of substantial demographic and economic change as economic reliance is diversifying away from coal exports and moving into other economic drivers such as small business, education and professional services. With this change, the social fabric of Newcastle is seeking inner city, stylish living and services as offered in larger capital cities.
Gentrification is on show in the once industrial parts of Newcastle. Suburbs such as Mayfield, Islington, Wickham, Carrington, Tighes Hill and Maryville are leading this revitalisation. All suburbs are within arm’s reach of Newcastle’s CBD and foreshore, while Newcastle’s world class beaches are not far away.
Of the residential property under development, apartment living is driving much of the demand
as old industrial sites are reclaimed for trendy 1- to 3-bedroom apartments suitable for today’s working professional. Current anecdotal evidence shows that these are selling quickly.
Subsequently Newcastle is currently in the midst of an apartment building boom with large numbers of apartments due for completion throughout 2016 to 2017. What prices do over the next 12 months will largely be determined by supply and demand forces.
With a population of approximately 160,000, Newcastle will continue to witness gentrification first hand and leverage off its Sydney big brother’s appetite for city-based apartment living. After all, Newcastle is only a two-and-a-half hour train ride from Sydney and perfect for those keen to avoid Sydney’s higher living costs, but who still yearn for that trendy skinny latte and swanky city-based lifestyle.
As an example, a beachside one-bedroom apartment at 503/67 Watt Street Newcastle NSW 2300 with harbour views was sold for $445,000 by Raine & Horne recently.