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PRD  →  Research Hub  →  Newcastle Property Market Update 2nd Half of 2021

Newcastle Property Market Update 2nd Half of 2021

In Q3 2021, Newcastle recorded a median house price of $912,000, and a median unit price of $825,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 11.8% for houses and 32.3% for units. Between Q3 2020 – Q3 2021 total house sales slowed by -11.4% (to 156 sales) whilst unit sales increased, by 35.6% (to 183 sales). In a rising market, vendors might hold off listing properties, in case of potential further growth. This was amplified by lockdowns, as Newcastle saw a reduction in the number of houses listed for sale; yet there was strong demand. PRD Newcastle made headlines in Q3 2021 with a record sale of $8.7M at 44 Kilgour Avenue, Merewether.

In Q3 2021, Newcastle recorded a median house price of $912,000, and a median unit price of $825,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 11.8% for houses and 32.3% for units. Between Q3 2020 – Q3 2021 total house sales slowed by -11.4% (to 156 sales) whilst unit sales increased, by 35.6% (to 183 sales). In a rising market, vendors might hold off listing properties, in case of potential further growth. This was amplified by lockdowns, as Newcastle saw a reduction in the number of houses listed for sale; yet there was strong demand. PRD Newcastle made headlines in Q3 2021 with a record sale of $8.7M at 44 Kilgour Avenue, Merewether.

Average vendor discounts between Q3 2020 and Q3 2021 have tightened for units to -0.4% and swung to a premium of 4.1% for houses. Market conditions in Newcastle favour vendors, where buyers are willing to offer close to or above the initial listing price. Buyers can still benefit from a marginal discount in the unit market however time is limited.

In September 2021, house rental yields in Newcastle were recorded at 2.7%. In the 12 months to Q3 2021, the median house rental price increased by 17.0% to reach $550 per week, while average days to let on the market slightly increased by 5.9% (to 18 days) due to lack of supply. This confirms there is a healthy level of rental demand in Newcastle.

2 bedroom houses have provided investors with +16.1% rental growth annually, with a median rent of $490 per week.

Also in September 2021, Newcastle recorded a vacancy rate of 1.4%, slightly above Newcastle LGA (1.2%) but below Sydney Metro (2.7%). Vacancy rates in Newcastle have been declining since April 2021, the peak of the second lockdown, whilst also remaining well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% throughout COVID-19. Overall, there is a strong rental market and investors can be confident of a conducive investment environment in Newcastle.

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