Newcastle: The next big investment
While the city once had its roots heavily planted in coal and steel, Newcastle is reinventing itself, set to become the next big city while Sydney’s prices are soaring. The NSW government have invested $6.5 billion in the city, with increased expenditure on public transport, the CBD, foreshore, and expanding the University of Newcastle.
Towards the end of 2018, a new $13 billion cruise ship terminal is said to be completed in the city, increasing the level of tourism they will see. More than $9 billion was invested in the port of Newcastle, increasing their capacity to export goods. Around $150 million has been allocated to the development of the entertainment precinct and the development of over 500 apartments. The Williamstown RAAF base will be receiving a $1 billion upgrade, including a $500 million aerospace centre which will add 8,500 jobs to the area. As well as this, there have been substantial investment in infrastructure allowing people to drive anywhere around Newcastle and Lake Macquarie in 20-25 minutes.
The City of Newcastle Council have projected a population growth of 33% by 2036, and so they are doing their part to attract investment and opportunities. For buyers looking for more affordable investment options than Sydney, Newcastle is a viable option for them. The median housing price in Newcastle is $530,000, compared to Sydney, where 39.4% of suburbs have a median price of $1-2 million.
In the last year, Newcastle’s approved developments rose 70%, bringing the total approved developments to over $3 billion in five years. As well as this, a projected $106 million building approvals are said to go through in the next 12 months, with over $270 million in applications.
For people living in Victoria, 72% of investors are set on buying properties in Melbourne, however 49% of NSW investors are looking beyond Sydney to invest their money. Given how affordable Newcastle is in comparison to Sydney, it is expected that people will look to start purchasing property in this booming city.