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Aussie Real Estate Podcast

Newcastle | Hunter Market Update

29 Sep 2022

Transcription

Chapter 1: What regions are covered in the Newcastle and Hunter market update?

2.562 - 8.412 Unknown

It's The Real Estate Podcast brought to you by ANZ Home Loans for financial well-beings.

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8.773 - 35.067 Craig

And welcome to another episode of The Real Estate Podcast available on iHeartRadio every morning and also on Spotify and Apple and wherever you get your podcasts from. Here we are, a Friday morning, the last day for September for 2022. Don't know where the week has gone, but it's up. And coming up, we're going to be talking very shortly with Kevin Mason from Property Buyer.

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35.047 - 62.843 Craig

All about buying property in Newcastle and a couple of other areas this morning. And the luxury end of the market over the boom has seen, as you know, record prices paid. And in some cases, astonishing amounts of money have changed hands for luxury properties. And on Monday, we're going to take a look at what is happening in that space of the luxury Sydney market with Monica Liu.

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62.823 - 81.591 Craig

In fact, Domain reported that more than 1,000 homes nationally sold for more than $10 million over the past two financial years. And Mossman was right there in amongst it. It had the most house sales above the $10 million mark last year.

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81.571 - 104.355 Craig

And Ray White economist Nerida Connersby says that there was 561 houses sold for more than $10 million last financial year, and that is up from $449 on the previous year. So yes, the pandemic has been better than great for the luxury end of the market, particularly in Sydney.

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It's your weekday real estate breakfast with news, interviews and predictions every morning on The Real Estate Podcast.

112.302 - 135.457 Craig

Well, next Tuesday, it is all happening again for young and old. What is it? It's another rate rise that is coming to a town near you. And people that I've spoken to over the last couple of weeks seem to think that there is more of a chance this time round for a 25 basis points rise rather than a 50. But where it lands is anybody's guess.

Chapter 2: What lifestyle benefits attract buyers to Newcastle and the Hunter region?

135.477 - 160.285 Craig

I'm going to go with 25 basis points, but, you know, I've got a 50% chance of getting it wrong. It would be nice, wouldn't it, to have a bit of a breather, have a 25 instead of a 50. But we will find out soon enough on Tuesday. Hey, if you're celebrating your birthday for the 30th of September, you are celebrating with Martina Hingis, the ex-professional tennis player.

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160.305 - 186.756 Craig

I think she got stabbed too, didn't she? She is turning 41 today. And Max Verstappen, the man that is taking it to McLaren in the F1. He, of course, driving for Red Bull. He is turning 24 years young today. And if you're looking for a movie over the weekend, a movie I was watching last night, I haven't got to the end of it. It's called Blonde. It is the Marilyn Monroe story.

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186.817 - 199.851 Craig

Just when you thought you knew all that there was to know about Marilyn Monroe, a whole lot of new information comes to light. So I can definitely recommend Blonde if you want to catch a movie over the weekend on Netflix.

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It's your real estate podcast for breakfast. It's the Maine Centre Forecast with PRD, selling smarter every day.

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208.399 - 236.466 Craig

Let's head around Australia and have a look at our weather on this Friday morning and grab the raincoat if you're heading out the door today from Sydney, expecting showers and a high of 21 degrees. In Melbourne, should be mainly dry, partly cloudy, but a high of 19 degrees. Brisbane, mostly sunny with blue skies, 27. And in Perth today, also sunshine and 29 degrees on your Friday morning.

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We talk with leading property commentators with analysis, predictions, forecasts and what's trending every morning from 6.30.

245.517 - 264.725 Craig

And this morning we're going to be talking about Newcastle, Hunter, the Port Macquarie and Lake Macquarie regions, which is located just 1.5km five hours north of Sydney and contains some really beautiful spots where you can find an idyllic lifestyle for less than half the price of Sydney.

264.785 - 287.141 Craig

Now, you might have heard of places like Meriwether Beach or the holiday enclaves of Salamander Bay and Fingal Bay. And then there's the luscious acreages and the stunning wine country around Poe Colborne. Now, many people have fled the cities and are now enjoying an enviable lifestyle in these areas.

287.221 - 303.383 Craig

And to find out more on what's happening with this real estate, I am joined this morning by Kevin Mason, in for Rich Harvey, Principal Buyer's Advocate from propertybuyer.com.au. And a very good morning to you, Kevin, and welcome to The Real Estate Breakfast.

Chapter 3: What property types can you buy in Newcastle for different price points?

352.245 - 363.501 Kevin Mason

It's very relaxed. And I think that's a big drawcard. And certainly we're seeing a large increase in internal net migration to regional areas such as Newcastle, Lake Macquarie, Hunter and the Port Stephens area.

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364.021 - 379.283 Craig

Yeah, okay. And what type of property, let's say around 750k and you're wanting to buy in Newcastle and then maybe have a look at the 1.2 million as well. What can you buy for those two price points?

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379.583 - 401.221 Kevin Mason

Yeah, that's right. Look, Newcastle CBD itself, you've got high price points there in the city. But to be honest, you can be five or 10 minutes out. You know, you can be picking up either an apartment in the CBD or you could be picking up a townhouse in the middle ring areas or a house, you know, sort of getting up into the sort of the 1 to 1.2, some of the more premium quality areas.

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401.742 - 418.157 Kevin Mason

But only 15 minutes to 20 minutes from the CBD, areas such as Katara, New Lambton, your middle ring suburbs are You can pick up a modern or near new townhouse duplex, you know, sort of ranging in the eights and nines, a decent quality house. You're getting up into the one, 1.2.

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418.237 - 435.595 Kevin Mason

There are a number of other suburbs adjoining some of the more blue chip areas where you can still get into, you know, good quality house. So the old 700, 750 or the 7, 750 price point is the old 500 entry price point. But you can certainly still pick up a house in the sevens and eights.

435.575 - 443.064 Craig

And perhaps let's have a look at the difference in costings between houses versus apartments in these regions.

443.545 - 456.601 Kevin Mason

Yeah, Craig, that's a great question. Let's look at an area, say New Lambton, for example, which is in your middle ring suburb, very popular for families, beautiful parks. You've got Lambton Park, you've got Blackbutt Reserve, which is a stunning area to take the kids and families.

Chapter 4: How do rental yields and vacancy rates compare in Newcastle?

457.062 - 475.993 Kevin Mason

You're looking at a medium house price there, Craig, of around the $1.5 two mark but medium apartments you're looking around the 800 mark okay so most suburbs here have got their own little village area where you've got shops and cafes there's a very strong cafe restaurant culture here very social very good value pockets here as well

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476.024 - 492.902 Craig

OK, and let's have a look at the rental market. There might be some investors out there thinking, OK, this is a region where I might like to invest. So let's have a look at the vacancy rates and also the typical yield on apartments and houses.

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492.882 - 517.062 Kevin Mason

Look, it's been interesting. The Newcastle vacancy rates literally dropped to anywhere between 0% to half to 1% over the last couple of years. Whereas it's interesting, we look at Sydney CBD, jumped up to about 16% during 2020. So vacancy rates are still very low. At the moment, they're ranging between 0.5 to 2%. You've got a very good selection of quality tenants here.

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517.122 - 534.858 Kevin Mason

Property managers have got the luxury of being very picky in choosing. So there's always a high number of applications to rental properties. The yields, yeah, look, the yields are always quite strong here. They generally range typically between 3% to 4%. They'll be lower for the high-end premium suburbs because you buy in prices higher.

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535.118 - 540.148 Kevin Mason

But there's areas where we can be finding a yield of between 4% to even 6%.

541.23 - 546.16 Craig

And what about affordable suburbs? Let's look at that affordability.

546.14 - 552.655 Kevin Mason

There is a number of areas which are currently affordable, but also there's a lot of up-and-coming type areas.

Chapter 5: What affordable suburbs should investors consider in the Hunter region?

553.136 - 573.718 Kevin Mason

I lived in Sydney for a short period of time. I was able to look at up-and-coming areas many years ago, areas like Erskineville, St Peter's, I look at similar areas here to Newcastle in terms of infrastructure, redevelopment, rezoning. So we look at those sort of areas which are going to become popular and are affordable now.

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573.738 - 587.723 Kevin Mason

So you can buy a property that's $50,000, $100,000 less in the adjoining suburb. I guess it depends on budget. There's a number of areas at the moment which we'd be looking at. You've got Mount Hutton, Cardiff, Walls End, Glendale. They're some of the better valued areas.

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587.703 - 595.414 Kevin Mason

Fletcher is another area as well that's a more established area where you can get a more modern property and plenty of new areas that are up and coming as well.

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Chapter 6: How has the property market changed in Newcastle post-pandemic?

595.915 - 606.811 Craig

All right. So that gives everybody a bit of a breakdown on the Newcastle and the Hunter region. Kevin, thank you for coming on to The Real Estate Podcast this morning. My pleasure, Craig. Thank you so much.

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Chapter 7: What are the key trends in the Newcastle real estate market?

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We connect you to the best real estate information across Australia. The Real Estate Podcast.

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