NSW Newcastle the next major city

Great article on newcastle for anyone interested, its finally starting to get noticed.

Where is Australia's next major city? Jo Chivers

 

"it confirms all that I hoped for and more"... "More development!" says the developer in a paid article.

The link provided in the article is positive and good for the area.
Are they fixing the train station yet? NSW gov had plans years ago to open the CBD up more by improving the station area and water front. I'm not too familiar what's happened, saw it on the abc a few years ago

 

Department of Planning presented a paper in the Hunter on the future directions for the area. Meant to be planning for a city of 350k people.

Railway is a dead issue - gone. Might end up with light rail if they're lucky.

 

I believe they were going to move the current main station that terminates, so that it opened up the water front area and cbd

 

Great... But i dont believe the article...Meanwhile Newcastle (Australia's Detroit) house prices continue to plummet and they will plummet more yet so im waiting.
With more Factories closing in this area like last week.
With more Bogan types moving in , businesses such as Pawnbrokers , Taxis, Gambling places , job centres will thrive.

I studied Newcastle and drove Cabs there on the nightshift and im glad i bought my IP more South at Lakehaven on the Central Coast because if i had bought in Newcastle and Jesmond properties I would of lost about 30k in value !!

Now earlier to mid this year Newcastle prices were going up, houses selling like matzo balls but not anymore, house in Lorna Street Waratah was 425k in August now 390k
I offered 425k for this on the first day inspection and it wasnt accepted, now look at it.
I bet the agent thats selling this must be kicking herself she didnt accept my 425k !
Place is termite hovel anyway and not Kosher.

Jesmond , Birmingham Gardens etc oversupply of rentals and stock.
Investors rushed into University suburbs such as Birmingham gardens earlier this year thinking they were going to get a big CG, sorry but they re going down.
I remember attending Saturday openings to see young to middle aged couples all mostly from Sydney trying desperately to buy with outrageous offers and jostling me for position, pushing each other at that time to be heard, but now its lucky if its onky me at the open day.
I missed out on a lot earlier this year and im glad i missed it.

Plenty of stock in Jesmond, Cardiff, Wallsend , not selling like hotcakes.

Heaton Street Jesmond was 775k (july) now 625k 15 bedroom
Heaton st Jesmond Townhouse was 440k (july) now 399k


Islington prices also coming down or remaining steady.For awhile there they were skyrocketing but have slowed.
Im looking for any bargains in this area presently .i think this area has the potential CG and the same with Wickham, Hamilton on top too , BUT im going to wait to see if they go down further ,
i did thnk Wallsend was a dark horse at one stage but now an oversupply and the same with Mayfield !!!! But even thats dropped off like a ........

Islington ,Hamilton, Wickham are my 3 top suburbs even though a few houses at Hamilton on the market for a few months now already.


Newcastle City apartments ...Real estate agents constantly sending me emails oversupply of City apartments.seem desperate to sell offering free Fiji holiday on buying.

A lot of Adult bookstores (far far more than Kings Cross) in the main Street far more than any i counted including pawnbrkers, adult bookstores, and brothel businesses, pubs.

I was up there 2 weeks ago and the City is dead, taxis sitting on ranks, the main street lucky to see any soul only unemplyed standing outside pubs.
Pawnbroking businesses and pubs with gambling thrivng.


No im glad that my offers in Newcastle back in May /June of 2015 were not accepted by the Agents, now of course they re less than what i offered, im happy that both my IP are further South towards Sydney on the Central Coast.(Lakehaven )both have risen in price.

 

Thanks for the summary @darlinghurstsboy boy i didn't realise taxi drivers sitting at ranks had such an impact on property conditions.

Newcastles defiantly no good you should stay away. I hear lake haven has been picked as the next suburb to boom might be worth buying a few more there.

 

Many of those suburbs were the dregs 20+ years ago & still are by the sounds of it are going back that way.

 

Rail terminates at Hamilton nowadays (not 100% on that).

It's been too long so I can't recall for certain who owns a lot of the sites along the railway so once it gets 'closed ' status rather than 'disused' it can be rezoned sold.

 

Thanks for the summary @star of David

 

I don't know much about Newcastle- looking at from an outsiders perspective, I would think there are better buys out there. A quick look at median prices shows its already fairly highly priced.

 

As a Novacastrian i will definitely agree with this. The best buying was done back in 2011 i just hope an article like this on property observer will drive prices that little bit further : )

 

That one phrase does not help prices or the area!

 

There will still be plenty of buying in Newcastle.

 

I was going to let this go and ignore it but if a newbie reads this they may actually believe you, so I feel obligated to reply.

Which Newcastle houses are plummeting? Those University catchment areas you seem to be so fond of? Seriously, as I've answered before, there is a reason for that. Uni holiday season, new boarding house legislation passed by NSW requiring fire compliance, competition from the onsite accommodation from the Uni itself, lower intake of foreign students (competition from Canada, etc etc.
Newcastle LGA median house price is up from $453K last year 2014 to $485K this year 2015 - up 7% overall. Individual suburb examples:
Mayfield up 6.3% YOY
Islington up 16.1% YOY
Cooks Hill up 5.5% YOY
Lambton up 12.5% YOY
Jesmond up 8.3% YOY
Birmingham Gardens down -2.75% Is this what you mean by "plummeting"??

Uni catchment property again and on a main road near a hospital.

Uni catchment property again.

The rate of growth has slowed, as in Sydney.......but good luck waiting for prices to go negative in this part of the world.

Mayfield only did 6.3% this year but it has had some exceptional years of CG in the past.

As investors we avoid new OTP units like the plague - for good reason.

I'll take your word for it as I don't go looking for these places.

Me too

 

I agree with @Propertunity. Newcastle is more than just a university town. I think you're looking at yield only and that's why jesmond and areas close to university became your focal point. Nothing wrong in buying jesmond IMHO but it depends on your strategy.

I have interest in Newcastle and I do hope it will grow well but as a long term strategy I'm not concerned with periods of stagnation and even a small drop.

 

The market is not declining in Newcastle and you have some issues reading data if you think one or two overpriced properties, in an area that is about to be hit by uni supplied housing, that are illegal, and that Council are cracking down on, are indicative of an entire regional market place.


And link to these holiday in Fiji off the plan apartments? An example? I get a lot of property updates, and I haven't seen any yet. I'd be interested to see which ones they are.

You like Lakehaven (where I just finished a major upgrade to the Centrelink due to a huge incease in demand for their services...) which is good for you. But you're knowledge of the Newcastle market outside of unapproved uni student boarding houses is abysmal.

 

Will the real slim shady please stand up

 

Good gracious. Spent much time at Lake Haven shops ?

 

Is that near Lake munmoron?

 

Sounds like sour grapes.