Newcastle in one of strongest property price growth periods ever: HTW
We are witnessing one of the strongest growth periods that Newcastle has ever experienced, across all price points with blue chip property auction properties having multiple competing bidders, according to HTW's February 2017 update.
The valuation firm says this peak in the market has been a constant over the past 24 months now and with current low supply levels, it sees no early signs of flattening for the early part of 2017.
With substantial infrastructure development, the changing image of a manufacturing town is creating a diverse town offering inner city university, various businesses, ample residential unit development and tourism, the report says.
A few major urban renewal projects either nearing completion or set in stone for the near future are: the new court house, Newcastle Uni development, Hunter Street mall revitalisation and light rail system to open up the harbour and the CBD.
The NSW government also introduced a new public transport system in December 2016, linking bus, ferry and light rail systems.
“Affordable housing is being sought in all suburbs that still have a minimal commute to town,” HTW says.
“Cameron Park, Fletcher, Maryland and West Wallsend are providing newly built residences within 30 minutes’ drive of Newcastle CBD, with current median prices ranging between $520,000 and $700,000.
A four bedroom house at 6 Weller Street, Fletcher (above) has been listed for sale for between $660,000 to $720,000.
Similarly a four bedroom house at 16 Devonshire Street, Cameron Park (below) has been listed for between $500,000 to $550,000.
Port Stephens is a enjoying sustained growth and increasing returns after many years of negative growth and over representation of mortgagee in possession sales.
This area is now experiencing low supply levels for vacant land in particular, with more families looking to relocate for the lifestyle this area offers.
“We expect this growth to continue into 2017 however given this area is heavily reliant on tourism, should the bubble burst, there is higher volatility in such markets.,” says HTW.
HTW says it hasn’t seen any signs of improvement in the mining town of Singleton that will change its commentary in the short term for 2017.
“Mines significantly scaled back investment in 2014 cutting jobs and costs, which trickled through to the entire economy in and around the town,” it said.
“There are a number of mines that have reopened or are planning expansion, with employment opportunities re-appearing.
“However this industry has not recovered and will take well into 2017 before a stronger economy is reflected in house prices.”