The 35-year-old accused was arrested in Argenton on Saturday night about an hour after a man, believed to be aged 63, was found dead in the bedroom of a Mayfield house unit.

Police established a crime scene and commenced investigations after being called to the Regent Street property about 6.30pm.

The arrested man was taken to Waratah police station and charged with one count of murder.

He was refused bail and was due to appear by audio-visual link in Newcastle Local Court on Sunday, but the hearing was delayed until Monday.

A post-mortem examination was due to be conducted on Monday.

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Police have remained tight-lipped about the alleged crime and did not hold a press conference on Sunday, nor make an appeal for information.

Forensics officers spent the morning examining the scene while general duties officers remained stationed outside the property, located adjacent the Mayfield Uniting Church.

The residence is believed to be a boarding house, although this could not be confirmed. City of Newcastle's development records suggest it is.

Neighbours of the property said on Sunday morning they hadn't noticed anything untoward before police arrived.

One neighbour said "on and off you get some noise" from the property.

Another who has lived in the street for about nine years said the area was a "beautiful, quiet place".

"The house next door to mine just sold for $1.2 million," he said.

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