2016 has been the year of blue-ribbon property in Newcastle, with intense demand for homes in the bellwether suburbs of Newcastle East, Bar Beach and Hamilton South sending prices skyrocketing.
According to data from Australian Property Monitors, prices have surged a whopping 141 per cent in Bar Beach so far this year to a median of $3.6 million.
While Newcastle East and Hamilton South have both joined the million dollar club for the first time, prices climbing 49 per cent in Newcastle East to a median of $1.4 million and 32 per cent in Hamilton South to a median of $1.115 million.
Principal of First National Newcastle City George Rafty said he believed the forward momentum with the revitalisation of the inner city was stimulating demand for high-end properties.
“The market is really abuzz at the moment,” he said. “I think there’s the hype in our current market purely because of everything going on in the immediate city, you’ve only got to look at all the cranes in the sky.”
Suburbs north of the CBD and close to the coast have also performed well, with growth of 15 per cent in Islington, and 11 per cent in Mayfield and Stockton.
“Anywhere near the coast we consider a hot spot,” Mr Rafty said. “Islington and Wickham are like Sydney’s Paddington and Surry Hills.
“It’s obviously very inviting to live near the coffee shops and the eateries, people are looking not just for a house but for a lifestyle.”
Buyers have also been flocking to Newcastle from Sydney, priced out of the market or to escape the hustle and bustle of the city.
“The numbers have grown to the tune of three times as many as we had 12 months ago,” Mr Rafty said. “They are finding Newcastle the best place to raise a family and I think that’s nice.
“I think there is still growth in front of us, I can’t see things slowing down. But it’s fair to say there might have been a correction in the market from a few years ago when we didn’t have much growth.”