Newcastle

The Smartline Report – April Edition

The month in review: Newcastle

By Herron Todd White
April 2016

As Australia’s seventh largest city, Newcastle has many fringe residential options for the savvy buyer or investor.

With positive capital growth and increasing values of inner city residential properties, Newcastle’s outer fringe suburbs including Fletcher and Cameron Park have provided investors with improved contemporary options and value for money.

For example, a contemporary 4-bedroom and 2-garage dwelling on 600 square metres of land in Fletcher may be found for around $550,000, however a dwelling with similar features in the inner suburbs of Newcastle may sell for $800,000 plus. As a result, anecdotal evidence is showing that more families are choosing to live in fringe suburbs where families will enjoy more space, while dwelling capital growth in suburbs such as Fletcher has also been in positive territory for three consecutive years (2013 to 2015).

Unlike Australia’s larger cities, traffic in Newcastle is rarely problematic and subsequently, suburbs on the Newcastle city fringe allow commuters easy access to CBD based careers, services and social activities. A trip from Newcastle’s fringe suburbs to the Newcastle CBD may only take 20 minutes, as opposed to Australia’s larger capitals where a similar journey could take at least an hour.

According to the New South Wales Department of Planning and Environment’s Demographics Unit, in 2011 there were 70,750 existing residential dwellings in the Newcastle LGA and 84,150 in the Lake Macquarie LGA. By 2031 this is projected to grow by 24.5% to 88,050 in the Newcastle LGA and 15.3% to 97,000 in the Lake Macquarie LGA. Many of these dwellings will be built in the fringe suburbs of Newcastle where land will continue to be made available for a growing population.

Newcastle’s fringe suburb investments of good quality residential assets will provide sound investments over the long term provided access to the CBD and Newcastle’s service industry remain straightforward and Newcastle’s population continues to grow.

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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. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.