The month in review: Newcastle

By Herron Todd White
June, 2010

In 2008, we described the Newcastle residential market as a ‘mixed bag’, with the market facing differing challenges in different suburbs. Two years down the track, this is still the case. The first homebuyers’ scheme has come and gone and left the typical mortgage belt suburbs showing signs of what can be best described as being in slightly more solid position to that at the beginning of 2009. There is still some hesitation evident in buyers with no notable leaders emerging in the ‘preferred Suburb’ stakes.

We imagine that any region across the country, interest rate movements are the hot topic – will they, won’t they rise. This uncertainty has resulted in the number of properties listed for sale still exceeding the number of purchasers actively seeking property.

Stable activity has been noted for the mortgage belt suburbs, which are generally located in the outer areas some 10 to 20 kilometres from the city centre.

The inner city suburbs are still in demand with a steady number of sales occurring and this seems to be the more popular choice of buyers.

But there doesn’t seem to be any standout suburbs at present.

Holiday areas such as Nelson Bay have been the worst affected areas, post economic downturn and at this stage, the recovery of these areas seems to be some way into the future.

It will be very interesting to see how the future unfolds for areas like Singleton and Muswellbrook, which are popular with the mining personnel for real estate investment, as the effects of the Federal Government’s proposed mining tax strategy are felt.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2009 Smartline Home Loans P/L. ABN 38 085 370 270