We LOVE this city & so does everyone else
Jessica Shuwalow, Rethink Ambassador
Demand for a piece of Newcastle is higher than ever. Rethink Financial Group (Rethink)’s latest Property Activity Intentions Report has highlighted just how much we love our city. At a recent local property workshop hosted by Rethink, 100% of guests surveyed intend on making a property transaction in the next 12 months and 90% of those transactions are intended purchases. This is up 20% from the last intentions report in 2014.
Amplifying just how much we love our city – only 10% of those surveyed plan to sell a property in the next 12 months and of that 10%, most of those sales were to restructure an investment portfolio and to purchase another property.
It’s not just ‘us’ Novocastrians that love our city, Rethink’s property workshop guest speaker Will Hosking Co-founder and Director of PMC Property Buyers who works all over the East Coast of Australia explained the reality of the Newcastle market and why Newcastle is a great long-term attraction. “People with equity in Sydney look at Newcastle and go, it’s so cheap! I can get a 3 bedroom, 2 bathroom, lock-up garage, 400 square meter block and within 8 kilometers of the CBD for $650,000! Compared to some 1 bedroom apartments in Sydney’s Northern Beaches going for over $1 million, with no parking.” However, there’s proof that WE LOVE our city the most! Will also told guests that “there’s many areas in Newcastle that we often can’t buy for clients due to the suburb or street being zoned as a 1 in 100 chance of flooding, and local agents just laugh because Novocastrians would happily buy there.”
While Newcastle property prices are at an all-time high of $495,000 (2016 median house price), we are displaying extremely high confidence in our city and property market. Of the intended property purchases in the next 12 months, the majority of these are likely to be investments (83%). Investor activity is up 8% on two years’ ago and 24% on 2013. Another of Rethink’s property workshop guest speakers, Mark Kentwell, Founding Director of PRDnationwide Newcastle and Lake Macquarie believes that Newcastle is only two years into the best 10 years it’s going to experience. “Not all of that period is going to be growth, but in terms of transformation and lifestyle we’re looking at our best 10 years in my view.”
Why we love this city so much and what makes it so special?
- Economic – Mark said that the Newcastle property market now has many more drivers: “The drivers are education, entertainment and industries. We have a massive RAAF base that’s just secured another federal funding injection which is a boost for local defense contractors, Hunter New England Health is the largest employer in our region, the University of Newcastle is now rated among the top 250 universities globally and we still have coal mining, but there is also a rise of many new up-coming industries. Plus, our region has got both lifestyle and geography. We have the Hunter Valley wine industries just up the road and 12-15 of the most beautiful beaches in Australia.”
- Diversity – Mark explains that “Newcastle has one of the most typical demographic spreads in all of Australia. That’s why major national and global companies actually test their products here in Newcastle first, so they can gauge their performance elsewhere across the country.”
- Proximity to Sydney – According to Buyers Agent and Sydney resident Will, “as Sydney becomes more unaffordable people talk about either moving interstate, or Newcastle gets thrown around a lot! I think the reason for this is, it’s proximity to Sydney. You can still see your family in Sydney, it’s only 2 hours away, you don’t need to get on a flight and Newcastle has all of the lifestyle factors”.
- Geography – Due to parts of Newcastle being contained to a peninsula it makes our city quite tightly held and difficult for development and oversupply to take place. Meaning only the fortunate few get to reside in our beautiful city.
Suburbs we’re loving the most right now, according to Rethink’s guest speakers
- Luke Brown, Director of RAMS Home Loans Newcastle’s personal favourites: Hamilton and The Junction
- Mark Kentwell
- Personal favourites: Cooks Hill and Hamilton
- For buyers: the Georgetown and Waratah precinct
- Will Hosking
- Personal favourites: the Lambton, New Lambton and Adamstown horseshoe
- For buyers: the last three purchases PMC have made for clients in Newcastle have been in Waratah
To view the full report: http://rethinkfinancial.com.au/property-activity-intentions-report-2016/
About the Property Activity Intentions Report
This report is designed to support buyers, sellers and investors in getting an insight into the possible direction of the Newcastle property market. It is the buyers and sellers that ultimately decide the price of a property, so we ask local peers (buyers, sellers and investors) to share their intentions around property over the coming twelve months hoping to get a snapshot of what’s to come.
*This report is purely based on intentions and is by no means to be relied upon as an actual predictor of property activity, prices or the market direction.