This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
HOUSE UNIT
House Sales
OVERVIEW
YEAR HALF YEARCHANGE FROM LAST
House Median Price
House Rental Price
Unit Sales
Unit Median Price
Unit Rental Price
FUTURE DEVELOPMENTS
MARKET CONDITIONS
HOUSE UNIT
These projects will stimulate economic growth and create new employment opportunities in Newcastle*, which should have a positive spill-over impact on the real estate market.
Newcastle* is set to see approximately $175.7M worth of new projects commencing in the 1st half of 2020.
Newcast le Market Update1s t Ha l f 2020
A main commercial project over the 1st half 2020 period is the $41.2M Nihon University Campus, which will see the conversion of the old Law Courts buildings plus new work including 108 beds of student accommodation. The $18.8M Merewether Street Mixed-Use Development will create 48 units, which is important to ensure future demand is catered for.
RENTAL MEDIAN PRICEQ1 2020
SALES AVERAGE DAYS ON MARKETQ1 2020
SALES MEDIAN PRICEQ1 2020
In Q1 2020, Newcastle* recorded a median house price of $750,000, and a median unit price of $572,500. This represents annual (Q1 2019 – Q1 2020) median price growth of 2.0% for houses and of 9.4% for units. Between Q1 2019 – Q1 2020 house sales slowed slightly by -2.3% to 127 sales, while units increased by 6.5% to 82 sales. With property values increasing despite mixed levels of market activity (i.e sales), Newcastle* proves to be a resilient market with continuing capital growth. Now is the time to enter the market.
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
UNITS SOLDHOUSES SOLD
Average vendor discounts between Q1 2019 and Q1 2020 have tightened for both property types, to -1.4% for houses and -3.3% for units. Market conditions in Newcastle* is attractive to both buyers and sellers; as sellers are able to achieve final sale prices closer to the first list price, and buyers are still able to benefit from a discount. Now is the time to transact in the market.
The suburb of Newcastle has historically performed well above the wider Newcastle Local Government Area (LGA) in both house and unit median prices. This continues to be the case in 2020#.
The dominant proportion of homes sold in Newcastle* across 2019^ were equally split – between premium pricing of above $900,000 (29.5%), and the most affordable of below $600,000 (29.4%). This suggests that the Newcastle* market is accessible to buyers with a range of budgets.
The market comparison graph provides a comparative trend for the median price of houses and units over the past 5 years.The main LGA profiled was chosen based on their proximity to the main suburb analysed, which is Newcastle.
-4.0
%
-4.7
%
-5.7
%
-2.4
%
-3.2
% -1.4
%
-5.6
%
-3.8
%
-4.3
%
-3.7
%
-3.5
%
-3.3
%
-6.0%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Cha
nge
from
Lis
ting
to S
ale
Pric
e
House Unit
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2016 2017 2018 2019 2020#
Newcastle House Newcastle LGA House Newcastle Unit Newcastle LGA Unit
29.4%
15.6%15.4%
10.1%
29.5%Less than $599,999
$600,000 to $699,999
$700,000 to $799,999
$800,000 to $899,999
$900,000 and above
18.0%
19.9%
18.0%
15.6%
28.4% Less than $399,999
$400,000 to $499,999
$500,000 to $599,999
$600,000 to $699,999
$700,000 and above
RENTAL GROWTH
RENTAL VACANCY RATES
RENTAL YIELD
Newcastle
Over the past 12 months, house rental yields in Newcastle remained steady at 3.4% in December 2019. This is on par with Newcastle LGA (3.5%) and much higher than Sydney Metro (2.7%). This suggests the house rental market is in a healthy position, as does the 3.1% increase in demand for rental properties in the 12 months to Q1 2020.
2 bedroom houses have provided investors with +1.2% rental growth annually, achieving a median rent of $415 per week.
Newcastle recorded a low vacancy rate of just 1.4% in December 2019, which is representative of a declining trend over the past 24 months. Further, Newcastle’s vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and Sydney Metro’s 3.6% average. There is a healthy rental demand in Newcastle, which is good news for those looking to invest outside of Sydney Metro.