New South Wales

Why invest in Newcastle

Newcastle has been going gangbusters and many investors and owner occupiers have been drawn to it, yet it still remains an excellent investment opportunity.

Overview

Newcastle combines beach culture with a thriving arts scene

Just two hours from Sydney and rapidly becoming a sophisticated, cosmopolitan centre in its own right, Newcastle holds rich and attractive opportunities for any investor. It wasn’t always this way. For a long time Newcastle was one of the roughest places in NSW. It was a coal port full of sailors, miners and a city based on steel and industry. Then, the recession of the early 90s hit the city hard, as did the closure of the BHP steelworks, the largest employer in the area. Few would have predicted that Newcastle would turn around to becoming the second most populated city in NSW with an exodus of Sydneysiders flocking to it each year.


Newcastle has transformed itself from entirely dependent on coal and steel based industrial city to more service based, especially in the areas of education, health and tourism.


What makes Newcastle so attractive to visitors?
It’s a combination of things. It has a strong beach culture and a thriving arts scene. The historic and elegant buildings scattered throughout the city are a tourist drawcard. It’s a short drive to Port Stephens and the Hunter Valley with its blossoming wineries. Pictured on left is the heritage-listed Commandant's Baths, on right is John Curtin School of Medical Research.

GROWTH

Newcastle is a growing, self-contained city

Newcastle’s population is 163,884 and the Department of Planning have projected it will reach 190,000 by 2036. It has a gross regional worth over $14 billion. It has also slashed unemployment (traditionally a bugbear of the Hunter area) by 2 per cent over the last year, thus strengthening the labour market. Meanwhile, both private and government sectors continue to pump investment money into it as a very innovative and dynamic regional centre. Data source: ABS Census 2016.


In numbers
Population
163,884
Families
41,504
Dwellings
72,456
Median Age
37
Children Per Family
1.8
People Per Household
2.4

Population

190,000

by 2036

INFRASTRUCTURE

New investment enhances Newcastle's infrastructure

Newcastle has three of the features vital for any regional centre’s flourishing development: its own airport; its own university and a large hospital. In addition, the NSW Government has committed $6.5 billion for a new light rail system. Newcastle has a growing aerospace industry. The RAAF Williamtown’s $500 million aerospace centre will add 8,500 jobs to the region. RAAF Williamtown currently has 3,500 staff and is the biggest employer in the Hunter region. There’s a $1.5 billion upgrade to provide a runway extension and state-of-the-art facilities at the RAAF Base which will see more strike jets to be based there in preparation for the Federal Government’s $12 billion expenditure on F-35A joint strike fighters. The infrastructure section would not be complete without mention of the Port of Newcastle. This is the largest port on the east coast of Australia and the world's leading coal export port, an economic and trade centre for the region.

RAAF aerospace centre
8,500 jobs

New light rail system
$6.5 billion


3D render of the new development in Newcastle, NSW by Iris Group.

Highlight

Unprecedented wave of residential development
A recent sale of a 1.66 hectare city block to hotel developer Iris Group for $39 million will launch an unprecedented wave of residential development. It will be a mixed space of residential apartments, 4,900 square metres of residential and 2,700 square metres of commercial spaces.

PROPERTY PRICES

Newcastle is on a booming trajectory

The Domain State of the Market report for September 2017 shows Newcastle’s property prices soared by 13.3 per cent over the year. In fact, Newcastle is on a booming trajectory and the median house price has already performed stronger than Sydney results, up by 8.2 per cent over the year. Newcastle has a median house price of around $595,000 and with the upward shift in prices over the last five years, the region is fast becoming a viable alternative to Sydney.

Av. Price

$595,000

Sources
NSW Government Planning & Environment, RP Data Core Logic, Hunter Research Foundation, Domain State of the Market report for September 2017, The Urban Developer, Residex.
Large scale development for Newcastle

Plans were lodged for Newcastle's largest stand-alone office building, a good sign for employment, growth and jobs.

Pasterfield Sports Complex

The Pasterfield Sports Complex launched in the booming Cameron Park area. It includes a skate park, fields, a playground and a 1 km jogging and cycling path.

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