Lake Macquarie and Newcastle’s property boom shows no signs of abating according to data in PRDnationwide’s latest property market reports for both local government areas (LGA) released today.
The Newcastle report shows the median house price in Newcastle LGA has risen by 11.1% to $600,000 over the past 12 months. The median unit price has also increased by 12.7% to $495,000. The median house price in Lake Macquarie* grew by 7.7% to $560,000 and by 8.4% to $450,000 for units.
PRDnationwide Newcastle and Lake Macquarie principal Mark Kentwell said the Newcastle house market has recently transitioned toward being a buyer’s market, with average vendor discount at -2.0% in the third quarter of 2017, suggesting now is the time for buyers to enter the market. Average vendor discounts for units are holding tight at -0.2%, with sellers achieving sales close to first list price. He said it is a different story in Lake Macquarie with both house and unit average vendor discount at positive levels of 0.3% and 1.3% respectively.
The median rent in Newcastle has increased over the past 12 months for a house to $445 per week while it is $400 per week for units. Rental yields were 3.1% for houses and 3.6% for units in the third quarter of 2017. Median rents have also risen in Lake Macquarie over the past 12 months to $432 per week (up 4.1%) for houses and $380 per week (up 5.6%) for units. Rental yields were 3.8% for houses and 4.2% for units in the third quarter of 2017.
Vacancy rates are currently at 2.2% in Newcastle. In Lake Macquarie they have declined to 1.4% which is below Sydney’s vacancy rate of 1.9%.
“Astute investors will do well in the Newcastle and Lake Macquarie markets due to favorable conditions for long term investments,” Mr Kentwell said.
PRDnationwide Newcastle and Lake Macquarie is a leading provider of real estate services including residential sales, property research, leasing, property management, as well as project marketing. It has offices in Watt Street, Newcastle, Newcastle Mall, Warners Bay and New Lambton. It provides two property research reports a year. Free copies are available by calling 49 260 600.
*Note: Lake Macquarie market data and key indicators encapsulates aggregate property market conditions in the following suburbs: Warners Bay, Speers Point, Valentine, Lakelands, Charlestown, Belmont, Cardiff, Macquarie Hills, Eleebana and Belmont North.