Newcastle appears to be a city on the rise, which could spell opportunity for property buyers in 2025.
From June '22 to June '23 the population of Newcastle increased about 1.4% - the largest jump on record. Newcastle also has the fastest population growth rate in regional NSW, aside from the broader Hunter Valley.
Part of this probably comes down to opportunity - the unemployment rate in the Newcastle electorate ticked under 2.9% in June, compared to the NSW average of 3.7%. Henry Single, director of buyer's agency Pivot Property, says there's also a trend of fed up Sydney residents selling and heading north.
"We're definitely noticing a bit of migration up there [from Sydney]" he told Savings.com.au.
More and more people are being priced out of the Sydney market. As of November 2024, the median dwelling price in the NSW capital was about $1.2 million. With a median property price of $837,000, Newcastle is comparatively far more affordable, and Mr Single says commuting from Newcastle to Sydney has become much more viable.
"The NorthConnex [tunnel] I think has made a huge difference…you just funnel straight in off the highway and link up with the M2 and from there you can kind of go anywhere in Sydney, cut out Hills Road [which is notorious for bad traffic]"
So, signs point to interest in Newcastle property continuing to increase. If you're looking to buy in and around the area, experts say these suburbs might be on the verge of major growth.
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure |
Mayfield (2304)
| Median Price (November 2024) | Annual Growth | Median Weekly Rent (November 2024) | Annual Growth | |
|---|---|---|---|---|
| Houses | $885,000 | 9.3% | $637 | 6.3% |
| Units | $725,000 | 20.5% | $470 | 4.4% |
Mayfield, north west of the city centre, was once one of Newcastle's key industrial zones and is now an up and coming residential area. It was also one of Savings.com.au's expert picks last year and didn't disappoint, with both house and unit prices rising significantly in 2024. They now sit around the Newcastle median, and Mr Single says property values could continue to climb as the suburb develops.
"There's new transport connections, new cafes, breweries, boutique developments," he said.
"All of that increases the owner occupier appeal of Mayfield and it's obviously pretty well located as well.
"Mayfield could do like 15% [growth] next year."
Waratah (2298)
| Median Price (November 2024) | Annual Growth | Median Weekly Rent (November 2024) | Annual Growth | |
|---|---|---|---|---|
| Houses | $890,000 | 12.2% | $650 | 10.2% |
| Units | $537,000 | -16.2% | $500 | 4.2% |
Waratah is another north western suburb Mr Single believes could attract more interest next year.
"Waratah is close to major employment hubs, close to university, the CBD, John Hunter hospital," he said.
"You pick up quite a broad cross section of tenants and buyers … students, healthcare workers, young families - they're all wanting to move into the area.
"It's still relatively affordable as well compared to nearby suburbs."
Merewether (2291)
| Median Price (November 2024) | Annual Growth | Median Weekly Rent (November 2024) | Annual Growth | |
|---|---|---|---|---|
| Houses | $2,150,000 | 0.6% | $850 | 0% |
| Units | $808,000 | 0.9% | $560 | 1.8% |
Merewether mightn't appear to be the boldest choice for this list. It's one of Newcastle's traditional premium suburbs and median prices for both houses and units in the area is probably well beyond what most buyers are able to spend.
For those who can afford it though, buyer's agent Chad Dunn of AcquiredHQ expects the upper end of the Newcastle market to perform strongest next year.
"Homes that sit along the beachfront, harbour front, acreage, or lakeside will really come into their own over the next twelve months," he told Savings.com.au.
"It used to be mainly local buyers vying for those key properties when they came up and now we are seeing two in every five buyers coming from outside the area."
Mr Single also pointed out Merewether remains relatively inexpensive compared to equivalent property in Sydney.
"[For] Sydney buyers, you can get a house [in Merewether] that's 300 metres from the beach for like half the price of what you'd pay in Sydney," he said.
"I think Merewether will probably do around 5-7% growth next year."
Soldiers Point (2317)
| Median Price (November 2024) | Annual Growth | Median Weekly Rent (November 2024) | Annual Growth | |
|---|---|---|---|---|
| Houses | $1,340,000 | 34% | $592 | -8.8% |
| Units | $853,000 | 1.9% | $510 | -3.8% |
For Mr Dunn, the best value in the region remains outside of the city centre.
"I feel Port Stephens will be the star performer in 2025," he told Savings.com.au.
"Holiday home seekers and Sydney relocators will gravitate to this amazing area.
"Suburbs like Anna Bay, Boat Harbour, Soldiers Point, Fingal Bay, and Corlette are places I can see retirees and families continuing to relocate to from areas as far afield as Queensland or Canberra."
Jutting out northwards into the Port Stephens Bay, Soldiers Point is a mini peninsula with lots of property near the water. With a median house price of $1.34 million it's one of the area's premium suburbs, but after a mammoth 34% growth in 2024 you mightn't want to bet against its prices rising further in 2025.
Fingal Bay (2315)
| Median Price (November 2024) | Annual Growth | Median Weekly Rent (November 2024) | Annual Growth | |
|---|---|---|---|---|
| Houses | $1,255,000 | -3.5% | $610 | 6.6% |
| Units | $760,000 | 1% | $520 | -5.5% |
Fingal Bay is another premium Port Stephens location. Its median house price is $1.26 million, so it isn't a cheap option, but anyone who has been there can attest to the beauty of its coastline. Fingal Beach is one of the region's most popular patches and a great place to spot whales.
Although growth in 2024 was fairly indifferent, Fingal Bay could be another suburb primed to benefit from surging interest in the Port Stephens area.
Anna Bay (2316)
| Median Price (November 2024) | Annual Growth | Median Weekly Rent (November 2024) | Annual Growth | |
|---|---|---|---|---|
| Houses | $871,000 | -2.1% | $650 | 11.1% |
| Units | $645,000 | -0.6% | $585 | -0.8% |
If you're sold on Port Stephens but priced out of areas like Fingal Bay or Soldiers Point, Anna Bay is a slightly more affordable alternative. The median price for both houses and units in the suburb dropped last year, but Mr Dunn is bullish about the area's long term growth prospects.
"Anna Bay is the closest beach to the airport and is a sleepy little surf village too often overlooked," he said.
"It's not the next Byron Bay, but it will be something special and we will no doubt see some major upswing here in the years ahead."
Picture by Henry Chen on Unsplash
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
