The Hunter is, and has been one of the most desirable places to live in the country but with house prices in Newcastle and Lake Macquarie jumping at an unbelievable rate it would seem there is new competition emerging.
COVID-19 has forced many changes in social behaviour affecting property markets differently. Particularly with Covid-19 escapees growing in numbers and looking toward regional areas such as Newcastle and the Hunter, hoping to leave behind crowded cities and suburbs.
Although inner-city property markets are still showing their strength in growth; Newcastle house prices are growing at a rate of $2000 per week as NSW’s second largest city experiences one of its strongest property booms yet.
This unprecedented price growth is being driven by a shortage of stock, low interest rates, housing demand in coastal communities, Sydney buyers and ultimately those seeking out a new lifestyle during uncertain times.
Real estate agents and developers are reporting “incredible” demand for property from Sydney buyers who have been priced out of their market and are also searching for a better lifestyle close to the beach with all the needed amenities.
This has seen the Newcastle median house sale price grow 7.4 per cent in the past three months to $690,000 — or about $2300 per week.
Agents are experiencing the highest buyer activity they had ever seen and 250-300% increase in sales volumes. With the coming months expected to see even more growth with the market being favourable towards sellers due to supply and demand (there were under 800 properties on the market in Newcastle - 400 fewer than last year). This has seen many buyers look towards developments as there is not enough stock to go around.
The ability to work from home has made Newcastle a great location and in turn, a great opportunity for investors to take advantage of the area’s incredibly high demand.
Check out some of our recent results that our client's have been seeing in and around the area. If you'd like to learn more about the potential results you could reap by investing in a high-growth area such as Newcastle, please reach out to us for a free consultation.