Newcastle & Lake Macquarie property investment hotspots poised for growth in 2019

Newcastle & Lake Macquarie property investment hotspots poised for growth in 2019

With investors moving away from the capitals, regional property hotspots might be the answer for those looking to invest in 2019. NSW’s regional property market such as Newcastle & Lake Macquarie are currently outperforming their metro cousins and may be attractive to investors in the current condition of the property market.

About 30% of the population live in regional Australia and a growing population including migrants, are exploring regional areas over capital cities for dwelling and employment opportunities.

Are regional investment properties right for you? Let us look at some pros:

Affordable properties

With high property prices in the cities, housing affordability is an issue for some. Investing in area such as Newcastle and Lake Macquarie can be a good way to enter the property market or expand your property portfolio. Better property at an affordable price tag is possible in a regional market.

Increasing population

Australia’s population is predicted to double by 2075 according to the Australian Bureau of Statistics. While the capital cities are nearly bursting at the seams, the migration to regional areas for more space and fresh air will be evident. This increasing population will provide better regional investment opportunities along with capital growth.

Infrastructural development

Newcastle & Port Macquarie are being developed at a good rate to enhance their liveability. New transport facilities are being introduced, along with shopping centres and other entertainment projects are being undertaken. This development is encouraging more households to reside in these areas, thus increasing property values.

Local job opportunities

People who prefer local jobs over the city can get ample employment opportunities in such regional areas. Quicker home to work travel for local jobs is an added benefit.

Improved lifestyles

In these regions where country meets city, families enjoy a more relaxed and improved lifestyle. Many young families would prefer having a pool or a large backyard for their kids, which these regional areas are known for.

As compared to capital cities, regional Australia showed a stronger growth performance, as per CoreLogic’s Hedonic Home Value Index (December 2018). Based on the annual changes in residing values, Riverina and Central West were the best performers in NSW. 

Both Newcastle and Lake Macquarie regions also showed strong growth of nearly 9%, whereas some areas like Southern Highlands/Shoalhaven region which were flourishing in 2018 are showing a slow decline.

Areas like Wollongong and Newcastle which were strong performers in 2018, will still continue to rise at a modest rate. Newcastle’s median prices will reach $635,000 by 2021, predicts QBE.

“With the Australian dollar being low, tourism and commodities are becoming very popular with many overseas visitors.  This continues to increase jobs, housing and infrastructure demand, which will result in these areas having capital growth and high rental returns compared to Sydney”, Rene Marzinger, Mirren Investment Properties.