Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Newcastle's property market is included in our pack
What do the latest numbers reveal about Newcastle’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local development influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Newcastle, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) Airbnb listings made up nearly 8% of Newcastle's rental properties in 2024
In 2024, Airbnb listings in Newcastle made up nearly 8% of all rental properties.
With 2,677 active Airbnb listings in Newcastle by April 2024, the city is seeing a significant shift in its rental landscape. This is particularly striking when you consider that the rental vacancy rate was just 1% over the past year, indicating a tight market with few available properties.
Such a low vacancy rate suggests that traditional rental options are scarce, pushing renters to explore alternatives like Airbnb. This scarcity is a key driver behind the increased demand for short-term rentals, which offer more flexibility for tenants and potentially higher returns for property owners.
Newcastle's rental market is under pressure, with low inventory levels and rising demand creating a competitive environment. In this context, Airbnb becomes an attractive option for both renters seeking temporary housing and owners looking to maximize their income.
These dynamics are reshaping the rental market, making short-term rentals a viable and appealing choice. As the market continues to evolve, the role of platforms like Airbnb is becoming increasingly prominent.
Sources: Airbtics, Investorkit
2) Construction approvals for apartments in Newcastle rose by 12% in 2024
In 2024, Newcastle experienced a 12% increase in construction approvals for apartments.
This uptick is tied to several factors. The University of Newcastle's Hunter Insight Dashboard revealed a mixed trend in mid-density housing, like apartments, even as overall housing approvals were on the decline. This indicates that while approvals for other housing types were dropping, apartments remained in demand.
InvestorKit's Market Pressure Review pointed out a tight supply level in the housing market, with new house construction being notably sluggish. This scarcity likely shifted focus and demand towards apartment construction, leading to more approvals. With new-house building approvals making up only 0.53% of all house stock, apartments emerged as a practical alternative to meet housing needs.
Planning Alerts highlighted ongoing development activities in Newcastle, including new apartment projects. This consistent interest in apartment development supports the notion of a steady push towards increasing apartment construction approvals.
Coposit's 2024 property market forecast emphasized the high demand for apartments, driven by young professionals, students, and retirees drawn to Newcastle's appealing lifestyle and economy. This demand likely contributed to the rise in apartment approvals.
Sources: University of Newcastle's Hunter Insight Dashboard, InvestorKit's Market Pressure Review, Planning Alerts, Coposit's Property Market Forecast
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Properties in Newcastle sold 7% faster in 2024 than in 2023
In 2024, properties in Newcastle sold, on average, 7% faster than in 2023.
This speedier market can be traced back to a few key factors. First, there was a noticeable increase in demand for homes, while the supply remained tight. With fewer homes available, buyers were quick to act, leading to faster sales. The low inventory levels and a drop in the number of for-sale listings made it clear that the market was competitive.
Throughout mid-2023, the time properties spent on the market was gradually decreasing. This trend indicated a rising demand, which prompted quicker sales. The rental market was also heating up, with a low vacancy rate of around 1%. This likely nudged more people towards buying homes, speeding up the sales process even more.
Property prices in Newcastle were climbing, with a 4.5% increase in the median house price compared to the previous year. This price growth, driven by high demand and limited supply, might have encouraged buyers to purchase more swiftly to avoid further price hikes.
Buyers were motivated by the fear of missing out on favorable deals, especially as prices continued to rise. The competitive rental market, with its low vacancy rate, added pressure on potential buyers to make quick decisions.
Overall, the combination of high demand, limited supply, and rising prices created a perfect storm for faster property sales in Newcastle. The market dynamics were such that buyers felt the urgency to act quickly, resulting in properties selling faster than the previous year.
Sources: Investorkit, Lane Campos
4) The average deposit for a property in Newcastle was AUD 120,000 in 2024
In 2024, the average deposit required for a property in Newcastle was AUD 120,000.
By mid-2024, Newcastle's housing market had bounced back to its 2022 peak, with the median house price hitting $860,000. This rebound shows a strong demand for homes, which often means buyers need to put down bigger deposits. The city's charm, with its vibrant economy and urban growth, keeps drawing in new residents and investors, pushing property prices up.
Supply and demand dynamics are key here. Since 2023, Newcastle has had a tight inventory, with only about 2 months of stock available. This low supply, paired with rising demand, creates a competitive market where buyers might have to offer higher deposits to snag a property.
Looking ahead, forecasts for 2024 pointed to moderate growth, thanks to these tight supply levels and increasing demand. The city's ongoing appeal continues to attract attention, further driving up property prices and the deposits needed.
Newcastle's strong economy and urban growth are major draws, contributing to the overall rise in property prices. This, in turn, affects the deposit amounts required, making it a crucial factor for potential buyers to consider.
In this competitive market, understanding these dynamics is essential for anyone looking to buy property in Newcastle. The combination of low supply, high demand, and a thriving local economy all play into the deposit figures.
Sources: Investorkit, Coposit
5) Newcastle's median household income rose by 3% in 2024, boosting borrowing power
In 2024, the median household income in Newcastle rose by 3%, boosting borrowing power for many residents.
Back in 2021, about 23% of Newcastle households were earning $3,000 or more per week, a higher percentage than other regions in New South Wales. This strong income base likely paved the way for further growth in the following years.
The property market in Newcastle was thriving, thanks to a robust local economy, urban development, and the allure of coastal living. These factors contributed to a flourishing job market, supporting income growth.
By mid-2024, the median house price had returned to its 2022 peak, reflecting increased demand and tight supply. This often correlates with rising incomes, making it a favorable time for potential buyers.
Newcastle's economic landscape was shaped by these dynamics, creating a positive environment for both investors and homebuyers. The city's appeal continued to grow, attracting more people to the area.
With these elements in play, Newcastle's property market and income levels were set on a promising path, offering opportunities for those looking to invest or settle in the region.
Sources: Household Income in Newcastle, Newcastle Property Market Forecast, Newcastle House Market Pressure
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6) Distressed property sales in Newcastle dropped by 3% in 2024
The Newcastle region saw a 3% decline in distressed property sales in 2024.
One reason for this is the tight supply of real estate in Newcastle. With fewer properties on the market, prices tend to stay stable or even rise. When prices are stable or increasing, homeowners are less inclined to sell at a loss, which naturally leads to fewer distressed sales.
Interest rates have also played a significant role. In 2023, rates were on the rise, making mortgages less affordable. However, forecasts suggested that interest rates would drop in 2024. Lower rates mean cheaper borrowing, helping more people manage their mortgage payments and avoid distressed sales.
Looking ahead, the market outlook for 2024 indicated that more properties would be listed in the spring. This anticipated increase in supply could provide buyers with more choices, reducing the urgency to sell properties quickly or at a loss.
These factors combined have contributed to the reduction in distressed property sales in Newcastle. The interplay of supply, interest rates, and market expectations has created a more stable environment for homeowners.
Sources: Lane Campos, Investorkit, Soho
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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