Newcastle Property Market Update 1st Half 2023
In Q1 2023, Newcastle* (which in this report represents postcodes 2300 and 2303) recorded a median house price of $1,250,000, and a median unit price of $773,750. This represents an annual (Q1 2022 – Q1 2023) median price softening of -18.6% for houses and -7.3% for units. Sales declined between Q1 2022 – Q1 2023, by -40.0% (to 30 sales) and -26.9% (to 57 sales) for units. This suggests cash rate hikes and consumer uncertainty have translated into the market, as the price downturn is evident even with an undersupplied market. There are new opportunities for buyers, as prices are more affordable.
Average vendor discounts between Q1 2022 and Q1 2023 have tightened to a smaller discount of -0.1% for houses and have widened to a larger discount of -3.7% for units. This suggest the Newcastle* market continue to favours buyers, as vendors are willing to accept below the initial listing price.
House rental yields in Newcastle* were recorded at 2.7% in March 2023, slightly below Sydney Metro (2.9%). That said in the 12 months to Q1 2023 median house rental price increased by 3.2% to sit at $650 per week, alongside a 2.7% increase in the number of houses rented (to 77 rentals). Average days on the market have increased slightly, but still a low 22 days. The same pattern can be seen in the unit rental market, confirming Newcastle* as an attractive investment option.
3 bedroom houses have provided investors with +7.7% rental growth annually, achieving a median rent of $700 per week.
Newcastle (postcode 2300 and 2303) recorded a vacancy rate of 1.6% in March 2022, slightly above Sydney Metro’s 1.3% average. Vacancy rates in Newcastle¥ have seen a slight uptick in the past 12 months, as investors capitalise on a tight rental market. That said it is still lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%. These key indicators create a conducive and sustainable environment for investors, especially with a more affordable property market.
