This year has been a great year for the real estate market in Newcastle and Lake Macquarie. We have seen excellent growth, and some record sales results in most suburbs in our region. In particular, the inner city suburbs of Newcastle have seen a high demand, and there is lots of activity with off the plan sales and the apartment market.
Economic drivers in 2016
The state government has injected over $1 billion worth of non-residential real estate investment into Newcastle. The university campus in the CBD, the Wickham interchange and our new courthouse are all major contributors to confidence and growth.
The future of Newcastle and the Hunter Region’s economy is looking bright, with lots of development announcements over the past year. You only have to look at the number of cranes in the city centre to see the level of activity. The cruise terminal coming to Carrington, the Clipsal 500 race in Newcastle East for the next 5 years, the recent sale of the $40m Hunter St Mall precinct, and the $6.6m sale of the former courthouse all point towards significant growth for the area.
Newcastle is no longer a hidden treasure, as we have also seen an increase in activity from Sydneysiders looking to purchase real estate in Newcastle, seeking more affordable housing and the lifestyle benefits that the city offers.
First National Newcastle City opened its doors in February 2016, and throughout our first year we have achieved some amazing results for our clients.
Celebrating results at our Spring Fling auction event in November 2016.
It was an honour to be acknowledged by the Real Estate Institute of NSW as the winner of the Award of Excellence 2016 for Residential Salesperson. For this I would like to thank my amazing and dedicated team, as well as all of our past and current clients.
Two trends have stood out to us in 2016:
1) An absolute increase in sales records within the prestige property market.
2) Exciting new property development within Newcastle’s apartment market.
Why growth in prestige homes?
I have talked about what is driving off-market sales on our blog earlier. A key factor include affluent clients seeking privacy in the buying and selling process. These time-poor clients also value a close relationship throughout the process to help them secure the result they are after.
I have always said that real estate is a relationship business. And this is probably more true than ever as the high-end of the market is now seeing what is, in my mind, overdue price growth.
Bar Beach and Merewether
The Avenue is worth noting as multiple properties on this prized street has sold for around the $4 million mark. Number 10 Bar Beach Avenue achieved a street record and we also marketed a home in the tightly held Charlotte Street which sold for $3.15 million. These results have transformed the value of the homes in and around the surrounding areas. We think there is more growth ahead for the 2291 postcode.
10 Bar Beach Avenue Bar Beach, which sold this year for $4.1million.
Our love for this coastal hamlet is no secret. A better lifestyle with access to amazing eateries, shopping, beaches and infrastructure is hard to match. Specific property mentions in this area include our auction record in Beach Street where the owners saw a 28% price growth per year over a 3-year period.
The Bogey Hole Newcastle East.
Off the Plan sales at Atrium, Parry Grande and The Hive
We are proud to partner with these quality boutique developments across Hamilton, Newcastle West and Wickham respectively.
Atrium is 90% sold, retaining unique architectural features such as exceptional floor to ceiling heights under the guidance of architect Kevin Snell. The 27 apartment development will incorporate Anzac House, which was designed by Frederick Menkens.
Parry Grande, located across from No. 1 Sportsground has now received DA approval and is selling to owner-occupiers valuing a generously sized, high quality apartment in a suburb close to shops, parks and transport.
The Hive is another development we are excited about. 12 architecturally designed New York warehouse inspired residences located in funky Wickham are already more than 50% sold. Newcastle is changing, and this converted motorcycle club building is one example of the urban textures entering residences in and around our great city.
The Hive Wickham.
Outlook for 2017
Underlying economic drivers indicate further growth in and around Newcastle and Lake Macquarie in 2017. We will still benefit from an influx in people from Sydney seeking a more affordable market, ongoing confidence from the investment in infrastructure projects in the CBD and continued growth in most suburbs in the region.
Newcastle by night.
On a personal note
I would like to thank our clients, the people who have helped and believed in us this year. I also want to thank the team at First National Newcastle City who have had an amazing year and achieved more than we could have dreamed of. We will enter the Christmas period knowing our efforts have contributed to results for our clients and a culture where we help one another succeed.
At First National Newcastle City we pride ourselves in doing real estate the right way. To us this means doing right by our clients and our community. I could not be more proud of our achievements this year.
With this, I wish you all a Merry Christmas and a new year blessed with health, happiness and prosperity.