Development boom continues in Newcastle
Newcastle is continuing to prove itself a highly-desirable location for both homeowners, investors, and developers, attracting newcomers at a rate faster than almost anywhere in Australia.
Despite a challenging financial landscape, the former steel city continues to draw record investment, with migration growth up 7% year-on-year since the start of the pandemic.
And, according to City of Newcastle, a record $1.85 billion is set to be flooded into the local property market within the next few years as renovators and developers get to work on the 1,650 development applications (DAs) lodged in the past 12 months.
Homeowners in Merewether, New Lambton and Mayfield are topping the list of renovators splashing cash on their property, spending a whopping $139.03 million on residential alterations and additions.
The figures are on top of state significant developments, which are up 25% from just two years ago.
The DAs approved, include projects like the Merewether Golf Club seniors living redevelopment estimated at $76 million.
Newcastle Lord Mayor Nuatali Nelmes says development in Newcastle is showing no signs of losing momentum despite challenging market conditions.
“Significant levels of residential and commercial development continue to unfold right across our city, which is great news for the local economy, construction industry, and the creation of thousands of direct and indirect jobs,” she said.
“Newcastle continues to be a hot spot when it comes to homeowners injecting cash into bricks and mortar, despite climbing inflation levels, stagnant wage growth, tighter borrowing conditions, and material and labour shortages.”
City of Newcastle manager regulatory, planning and assessment Michelle Bisson said Newcastle was growing in popularity as an attractive gateway city to live, work and play, which is driving the development boom.
“Through multiple market cycles, Newcastle is considered a steady growth area to invest in, with ongoing revitalisation transforming the city and making Newcastle a highly desirable location to both homeowners as well as developers and investors,” Ms Bisson said.
“Migration growth in Newcastle has increased seven per cent year-on-year since the start of the pandemic, with more people relocating from Sydney and Melbourne than ever before, and at a faster rate than almost anywhere else in Australia, driving development across the city.
“With millennials making up the vast majority of those relocating to Newcastle, the demand for residential housing remains strong with prices still cheaper than major Australian capital cities.
“The second half of 2022 is tracking just as strongly with some significant developments in the pipeline.”
SUBURB SNAPSHOT 2021/22 FINANCIAL YEAR SUBURB APPLICATIONS APPROVED
- Merewether 143 – Estimated cost $61.78 million
- New Lambton 132 – Estimated cost $35.04 million
- Mayfield 130 – Estimated cost $42.21 million
- Adamstown 56 – Estimated cost $92.04 million
- Beresfield 34 – Estimated cost $44.35 million
- Shortland 25 – Estimated cost $31.16 million
- Sandgate 3 – Estimated cost $30.67 million