NSW Newcastle 2024

Will be on the DA.

 

I'm not an agent! But I'm putting in the legwork around the eastern suburbs. I agree with what you're saying about the market holding up quite well around the lower end (1-2 bed apartments in Merewether, Cook's Hill). Also at the higher end, though it's hard to gauge because so much is done offline and prices not disclosed. When I showed serious interest in a property at the $2m mark, I was told my competition was Sydney investors (who must have vanished because the property is still unsold). I've seen quite a few around the 1.8-2.5 mark taken off the market, presumably to rent for 6 months and return. I've seen a number around that mark (up to 3.5) reduced. A few auctions that seem to be endlessly postponed and a couple passed in (eg, 4 Llewellyn St passed in on Saturday). I get the feeling that it is the lack of houses for sale that is driving the market to people who need to buy a PPOR. 80% of I've looked at has been a rental so perhaps it's investors selling. I've now viewed 3 properties in the 2-2.5 range who are older people downsizing and they are struggling to sell (eg auctions cancelled then quietly sold for much less / bottom end of auction guide because the vendors need a sale). Same faces going round the open homes. One Merewether property sold for $2.5 within days of listing last week and I think that reflects a lack of properties in that price bracket.

On the other hand - can't get a call back from some of the agents. Called one yesterday to request a property report for a new listing and they didn't even want my name for the database. Submitted an offer in writing above guide price to another and took 3 days to get a response.

 

Great feedback thank you. I have my house on the market with quite a few offers. All the buyers are downsizers in that same position, but they need to sell before they can buy mine. It will be interesting to see how this is represented in sales figures in the next 6 months.

 

Have my eyes on something in this range also - but need to find someone to short term (6 months) lend a couple of older fogies a neat mil to make it happen ... the agent said he had been expecting a couple of Sydney investors at the open, but they rang to say there couldn't make it.

Guess I'll have to put my powerball in again

 

This block of 400sqm block of land sold for $3.65m with DA approved plans on Memorial Drive which is Newcastle's trophy home front row seat.

Different valuation to land in Bar Beach back streets. Not bad considering a new architectural house on that patch could be worth say $7 to $8m quite easy.

https://www.realestate.com.au/sold/property-residential+land-nsw-bar+beach-203704980

 

I looked at several places in the last year circa $1.5, which the agents were adamant offers were coming in thick and fast from Sydney buyers who were looking to sell for $2.5, move up here and have cash in the bank. Most of those properties were either withdrawn from the market or still remain unsold.

I suspect the $1.5 and above market is showing signs of weakness. There are still a few sales, but not as many to match the amount of stock on the market asking those prices.

 

Depends on whos buying what I suppose. The majority of people want a newly renovated places, architectural, high end.

That stuff and those builds don't come cheap trust me, you won't get much change out of $500-$750k+ in 2024 and I seriously doubt any person who has just completed a build like that wouldn't be selling under cost - hence pulled them from the market. Can you blame them?

Unless you want to spend 2+ years doing a build yourself and giving it away.

 

Depending on the location, I'd agree ... the one I had my eye on was supposed to go to auction, but was withdrawn pre auction, and is now on standard sale treaty ... suspect the anticipated Sydney buyers that were going to "drive up the price" at auction didn't turn up

 

The lower end of the market seems very competitive ATM. Lots of people at open homes too over the last couple of weeks.

Sketchy stock seems slower - Went to an open in Baker Street New Lambton a couple of weeks ago. You'd definitely need nerves of steel to take that on!

Otherwise, it seems like a reasonable time to be a seller, specially for those upgrading.

 

Hope everyone has been well!

@JLC summed it, the market up to $2,000,000 is still really buoyant, new homes on the market has remained tight with less a lot less on the market than we saw at the start of the year.

Prices are as good as they have ever been, we have had a handful of resales were they have owned the home less than 12 months and they are getting out fairly unscathed (Factoring in, stamp duty, agent costs etc...) and depending on the price point I have seen a few results well over 10%+ on the purchase price.

We are seeing between 10-20 groups through the first open home, once it boils down there may be between 1-2 groups that are actually in a position to buy. The majority of people out looking aren't in a position to buy, it seems like everyone is just researching at the moment and trying to gain a better understanding of the market atm. (The main concern here will be once those 1-2 groups have purchased, when will the researchers be ready to buy)

With negotiations, once they reach a certain level, buyers are happy to walk away, there isn't that emotional desperation that we were seeing. With speaking with the underbidders they believe there will be another one around the corner.

Average days on market is still sitting around 30 days, generally we are seeing your best chance to get top dollar is within the first 14 days now, once you miss this window generally you end up chasing the market down.

 

Have also noticed this. The 'dated in need of a renovation' stuff between $2.0 - $4.0m is not really moving and see prices discounted heavily after the initial listing, unless the home is exceptional like the 33 Silsoe Street property which ticks every single box and is completely new and turn key for a family to swap into.

It seems that Newy buyers in this range are looking for a bargain, perhaps due to lack of competition from other bidders? Or holding out for something 'better' to come along given there is no FOMO pressure to buy now.

Whereas this $2-4m range in the Sydney market is 'powering' growth-wise, Newcastle seems to be lagging and has gone backwards since the 2021 peak.

I also think most people in 30s moving to Newcastle from Sydney are young families and couples who can work a few days a week remote, looking in that $800 to $1.30m range where they can only afford a small apartment in inner Sydney.

 

Would you say there's only 1-2 interested groups in homes under the $1.2mil price point?

I'm about to start actively looking for a 3 bedroom place in Newcastle in the next fortnight, just waiting for pre-approval to be finalised.

 

Hi all,

What do you think about this one? Great rental yield if downstairs and upstairs can be rented out sepeartely. But currently there is no separate billable utilitiy meters.

How feasible do you think to get the separation done considering it's strata title (no idea what the next door owner looks like) and council approval.

https://www.realestate.com.au/prope... properties - list&sourceElement=listing-tile

 

Hi all, very new to this forum. Please need a advise from you guys. Is investing in Newcastle at this point for capital growth and rental yield is a good idea? I am looking for my 1st IP. Everyone is jumping to WA and QLD at this point. I have a budget of just over 580K house. Being a Sydney based i would rather prefer NSW than other states but will i even find a decent for that price point at Newcastle?

 

The short answer is no for that price point for a decent house unless you are willing to look at western area like Beresfield Tarro Medford - some areas could be rough.

 

You're absolutely spot on - we're pre-approved for a bridging loan, but are looking for something very specific and not prepared to go outside those parameters (maybe that's an age/stage in life thing). Makes us appear like tyre kickers. And also looking for value for money ie, a derelict knockdown is only worth land value - don't try and sell me the house too

I have noticed there is an element in the market that still thinks they're on bumped up covid prices - and certain agents playing into that, in order to get the listing.

If we're like the average buyer - time is on our hands and we're happy to wait until the right property comes up at the right, realistic price

 

That is a hard question to answer because once you are on the ground, anything in this price point may attract 60-100 groups through the campaign over a 4 week period.

Generally there will only be 1 to 2 groups still interested once the price gets to certain level, I will use this one as an example as I have no affiliation.

Auction guide $1,100,000- $1,200,000

They had 6 registered bidders, 3 of them bid up to $1,200,000 & then it went back and forth up to the $1,290,000. https://www.realestate.com.au/sold/property-house-nsw-mayfield-144478620

Very common occurrence in the market place at the moment.

 

It is definitely possible but the home will defintely require maintence work and be in a less than desirable area, it wasn't that long ago, mid 2000's that you could still buy a house in Windale or Gateshead in the $100,000 and they have all had significant growth, I guess it just depends on your investment strategy and what you are trying to achieve long term.