NSW Newcastle 2022

The market in Newcastle grew significantly during 2021. CoreLogic's 'best of the best' report, which provides suburb-level analysis of the country's best property performers, released new figures this week.

The report indicated that The Hill was one of Newcastle's most desirable locations with a median house price of $1.99 million and ninth-highest median suburb value in regional NSW. Median house prices in the beachside suburb of Redhead increased during 2021 by 50.1 per cent to $1,432,000, representing the eighth-highest jump in regional NSW.

According to CoreLogic statistics, house prices in the Newcastle and Lake Macquarie region have increased 31.3 per cent in the year to October while units have gained 17 per cent.

I have seen a huge number of buyers again in 2021 relocate to Newcastle. In lockdown, half of my auctions were bought from buyers that had not physically inspected the property, several of these buyers being expats purchasing from the other side of the world. The value of each of these properties they individually purchased were in excess of $1M and in some instances over $2M so we are not talking about entry level homes but ones that require big decisions before buying. The interesting fact is that several of these buyers were investors showing that Newcastle is both a great proposition for owner occupiers & investors. With all that Newcastle offers in regards to lifestyle it is no surprise that buyers are continuing to see our region as a great place to live, work & play.

The market over the past 2 years has been fuelled by limited stock and huge buyer demand. With a higher number of properties predicted to hit the market in 2022 the supply vs demand should even out potentially stabilising price. Will we see another post lockdown surge before this happens? That is something we will have to wait and see.

 

Welcome here
I would love to see Newy to go steady in 2022
P.S you may want to join as a business member as you are a REA

 

Newcastle market seemed to be slowing a little coming up to Christmas. What are people's thoughts for 2022?
@tomlemke
@Lizzie
@TylerJameson
@samiam

 

Well. My unreno'd (read: original mustard kitchen) 1970s red brick unit at Adamson went on the market mid December. After a bidding war, sold within the week for $60k more than we expected.

People liked the idea of buying unrenovated for" the cost of the reno" cheaper, so they could do their own thing and use sweat equity ... due to the price, suspect it was mainly fhb'ers

People seem to be now looking for true value for money, rather than being prepared to pay anything ... rather like comments on the car prices thread in "the living room"

 

I think raging covid did not help with house opens. My colleague is selling his rental home but due to infection of tenants, open home has been cancelled. It may take a couple months before we see the actual trend..

 

Is there anywhere in Newcastle or surrounds where you can get a detached house for $500k or less?

 

detached house - will be very hard to get
semi-detached/duplex - may be
rental is very tight - even semi are sold and rent like this
https://www.realestate.com.au/sold/property-townhouse-nsw-waratah-137787698
https://www.realestate.com.au/property-townhouse-nsw-waratah-433355162

 

Depends how far out you're prepared to go for "surrounds". You'd beer looking Kurri Kurri and Cessnock for those dollars

 

Welcome aboard Donna, nice to have another Newcastle agent contributing on this forum.

I’m still bullish on the market performing strongly for the first half of 2022, the latest outbreak will keep new listings relatively low, similar to what we saw happen last time round.

The market’s appetite has remained extremely strong for completely original homes as @Lizzie stated above, buyers have been paying a premium well above market value for homes or units that they can renovate themselves.

If you are looking to purchase and wanting better value for money, I would be purchasing something that is a bit dated that may of only been renovated 10-15 years ago.
What we are finding is most buyer’s will not want to pull kitchens or bathrooms out if they are relatively new, and will overlook these home completely because of this.

 

Might also pick something up in Raymond Terrace but beware the dodgy zones

 

Welcome @Donna Spillane. Personally, still can't get over the $4m result for the property you sold on Parkway Avenue before Xmas for a 3 bedder! well done to the vendors

The Newy market appears to be quite strong for 'current / in-style' old meets new renovations

 

Cessnock is punching 500s for a miners cottage on 650 squares.

 

What do you guys think of Hunter Economic Zone? 20 years in making. This time will be different??
‘Road to nowhere’

 

What a disaster bro. There was talk of a super critical power station there, and they would have gotten away with it if it wasnt for that pesky bird.

 

Ha I see. I thought they are replanning with 70% land allocation for environmental conservation. Not sure it will still work out…

 

Any thoughts on Cessnock as a future growth opportunity? Seems to me like it’s positioned in a unique position… close to Maitland, commuting distance to Newcastle and Sydney, local work in wineries and mines and manufacturing , new gas plant at kurri kurri is likely, new hospitals in the area , hunter economic zone potentially and decent rental returns

 

Novocastrians don't consider it commuting distance to Newcastle - its more that 5km away

 

It is so in the wrong place for anything ... and the latest plug for a gas plant is purely because the land is owned by Scotty's mate

 

Economically speaking, 2022 will certainly be an interesting year given the moves happening in the volatile stock markets at present and the outlook for RBA rate rises if core inflation continues to ramp up. US inflation rate is running at 6% and Federal Reserve is looking at 4 rate rises this year and eventually back to a 'neutral' central bank rate setting of 2.5%. Lets see how qucikly the Americans move to try to tame their inflation genie.

I guess it was always bound to happen when you make cash too cheap coupled with supply issues, too much money floating around looking for a home... ie property, cars, watches, art, stocks, Bitcoin. All those asset valuations benefited from very cheap cost of money.

Will be very interesting to see what our RBA does. The bond market already signaling that higher rates are coming. The question is when... and will it spook property buyers?

COVID-19 correction: It’s reasonable to assume equities could return to pre-pandemic peak

 

Well theres the high inflation number of 3.5% released today. Lets see what RBA's next move is and how quickly it comes.

The most significant price rises in the December quarter were new dwellings (+4.2 per cent) and automotive fuel (+6.6 per cent).

“Shortages of building supplies and labour, combined with continued strong demand for new dwellings, contributed to price increases for newly built houses, townhouses and apartments.” Ms Marquardt said.

Australian inflation surges in Q4, market bays for rate hikes