Newcastle July 2017

The month in review: Newcastle

By Herron Todd White
July 2017

With the Newcastle market running hot for a lengthy period of time, first home buyers and growing families are looking at alternative and cheaper options in outer suburbs and nearby towns. Medowie and Raymond Terrace are two of these areas both around 35 minutes drive from the Newcastle CBD. Half a million dollars will get you quite a bit more house and land compared to the inner suburbs of Newcastle and for growing families it is just not practical to live in a 2-bedroom unit when you can get a modern 4-bedroom house on 1000 square metres for the same price.

Medowie’s two major economy drivers and employers are the nearby airport and RAAF base. A current expansion of the RAAF base and the proposed upgrade to an international airport have created more job opportunities and a subsequent high demand for property. The Bower Medowie subdivision which recently opened stage one sold out all 31 lots in 48 hours with some buyers camping out to ensure purchase.

Raymond Terrace’s location on the Pacific Highway allows for convenient access both north and south. Like Medowie, Raymond Terrace also benefits from the airport and RAAF being close by but the major economy drivers are manufacturing and retail.

Longer commute times and lack of or inferior services and retail are factors for lower property prices in most outer suburbs and small towns around the country, but by placing the microscope specifically on Medowie and Raymond Terrace, other cracks influencing lower property prices begin to appear.

Medowie does not lie within the contamination zone around RAAF Williamtown but it is certainly within the jet noise zone created by the base and the procurement of the new F35 fighter jet from 2018 will only increase the volume. The noise issue and being located in a bush fire prone area and slightly off the beaten track mean that although the majority of housing in Medowie is modern and on larger lots, half a million will still go a long way.

Raymond Terrace is larger than Medowie and offers more in the way of services and retail, however older estates can make it less family friendly along with a longer commute time into Newcastle. Additionally Raymond Terrace lies within a flood zone due to its location near the confluence of the William and Hunter Rivers. This means that half a million still puts you near the top end of town.