Newcastle Property Market Update 1st Half of 2020
In Q1 2020, Newcastle recorded a median house price of $750,000, and a median unit price of $572,500. This represents annual (Q1 2019 – Q1 2020) median price growth of 2.0% for houses and of 9.4% for units. Between Q1 2019 – Q1 2020 house sales slowed slightly by -2.3% to 127 sales, while units increased by 6.5% to 82 sales. With property values increasing despite mixed levels of market activity (i.e sales), Newcastle proves to be a resilient market with continuing capital growth. Now is the time to enter the market.
In Q1 2020, Newcastle recorded a median house price of $750,000, and a median unit price of $572,500. This represents annual (Q1 2019 – Q1 2020) median price growth of 2.0% for houses and of 9.4% for units. Between Q1 2019 – Q1 2020 house sales slowed slightly by -2.3% to 127 sales, while units increased by 6.5% to 82 sales. With property values increasing despite mixed levels of market activity (i.e sales), Newcastle proves to be a resilient market with continuing capital growth. Now is the time to enter the market.
In Q1 2020, Newcastle recorded a median house price of $750,000, and a median unit price of $572,500. This represents annual (Q1 2019 – Q1 2020) median price growth of 2.0% for houses and of 9.4% for units. Between Q1 2019 – Q1 2020 house sales slowed slightly by -2.3% to 127 sales, while units increased by 6.5% to 82 sales. With property values increasing despite mixed levels of market activity (i.e sales), Newcastle proves to be a resilient market with continuing capital growth. Now is the time to enter the market.
Over the past 12 months, house rental yields in Newcastle remained steady at 3.4% in December 2019. This is on par with Newcastle LGA (3.5%) and much higher than Sydney Metro (2.7%). This suggests the house rental market is in a healthy position, as does the 3.1% increase in demand for rental properties in the 12 months to Q1 2020.
2 bedroom houses have provided investors with +1.2% rental growth annually, achieving a median rent of $415 per week.
Newcastle recorded a low vacancy rate of just 1.4% in December 2019, which is representative of a declining trend over the past 24 months. Further, Newcastle’s vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and Sydney Metro’s 3.6% average. There is a healthy rental demand in Newcastle, which is good news for those looking to invest outside of Sydney Metro.
