Here are 5 reasons why NEWCASTLE is the next big thing.
Have you noticed how Newcastle is evolving?
The city was once a major industrial center, but it is now changing on many fronts to become one of New South Wales’ most important cultural, business, and heritage hubs.This is providing a sound alternative for individuals who believe they are currently priced out of the Sydney market and is having an extremely positive effect on local property.
Newcastle’s ability to unwind does not preclude the city from experiencing rapid expansion in the coming years.The city is about to embark on what could be the most significant growth cycle it has ever experienced thanks to the Newcastle Smart City Initiative and billions of dollars in funding from various industries.In the coming years, keep an eye on these five developments.
1) The renaissance of cruise ships
Although the Port of Newcastle is the center of Newcastle’s development, the city has so much more to offer.For instance, although non-coal trade makes up only 5% of current trade out of the port, it makes up about 25% of total revenue.Cruise ship tourism is a major contributor to this.
For the expanding cruise industry, Newcastle is the new entry point into Australia.
A brand-new $13 billion cruise ship terminal will be completed at Carrington by the end of 2018.The current $11 billion Newcastle receives annually from cruise tourism should significantly rise as Sydney reaches its capacity for cruise ships.
The expanding cruise industry will use Newcastle as its new entry point into Australia, which will be beneficial to the local economy.
2) A billion-dollar investment for the Port of Newcastle
As previously stated, coal accounts for the vast majority of the Port of Newcastle’s operations.Our capacity for this kind of shipping ought to triple within a few years with investments totaling more than $9 billion in the ongoing expansions.Port Waratah Coal Services, BHP, Centennial, and Felix have all invested in various projects.As a result, the export capacity of each of the four port precincts—Carrington, Mayfield, Kooragang, and Walsh Point—will increase.
Everyone in the Newcastle area benefits from this by making more money and doing more business.
3) Education and a complete rebirth of the CBD
The Newcastle Smart Cities Initiative has been fascinating to watch in action.I’ve been to a lot of meetings with the Property Council of Australia and the Newcastle City Council, and I’ve seen the vision for a Newcastle that is different from its past industrial focus.With the reconstruction of some important CBD precincts, this has really started.
The Hunter Street Mall will be renovated, transforming the central city into a 50/50 mix of residential and commercial/retail space.This includes a $510 million allocation for the construction of over 500 apartments and an entertainment district.A new entertainment hub and a development resembling an “eat street” will be built—everything a thriving city needs.
The completion of the Newcastle Law Courts, which are now the largest in the state other than Sydney and serve as a city landmark and focal point, is another recent undertaking.
Newcastle is emerging as one of the brightest spots in the nation for tertiary education in almost every field thanks to the opening of Newspace University this year, expansions to the University of Newcastle, and $3.8 million in federal funding for the Hunter TAFE campus.
4) Money for the Williamstown RAAF base
The Federal Government recently spent $12 billion on F-35A joint strike fighters, of which one squadron will be based at the nearby Williamstown RAAF base.The base will be upgraded for $1 billion, adding new runways, maintenance facilities, crew quarters, and systems and weapon loading centers to accommodate these.
Additionally, Lockheed Martin and BAE Systems have signed local contracts to work around Williamstown, and a $500 million aerospace center will bring 8,500 new jobs to the Newcastle area.You can see that there is an increase in employment on every front.
5) Regional expansions of the region’s infrastructure
Naturally, housing and infrastructure must be expanded to accommodate job growth.Tens of millions of dollars are being allocated to Newcastle-area road projects in this regard.An inner-city bypass, improvements to Tourle Street and Mayfield, and the Hunter Expressway all improve transportation options and encourage local growth.
It only takes 20 to 25 minutes to drive anywhere around Newcastle and Lake Macquarie with this kind of infrastructure, which is something you can’t get in the Sydney central business district.
But what’s the point of all this growth?
I’ve been in the real estate business for more than 21 years, so I’ve seen a lot of change, and Newcastle is unique.Even though it is only at the beginning of its rise, the scope of the development that is currently in the pipeline is staggering.Even though we are only two years into the greatest decade ever for spending on infrastructure, Sydney is already having a real impact.
Currently, suburban growth rates range from 5% to 9.7%, but median values in Sydney are typically only a third of what you pay for.This means that families and investors can acquire affordable real estate with some of the best growth prospects available.
Rental yields can sometimes be more than 2% higher than in Sydney’s suburbs due to lower entry costs and improved positive cashflow.You have some of the country’s best beaches, lakes, and parks for families, and your cost of living is lower than in big cities.You’ll never run out of things to do thanks to the expansion of culture and education.
In a nutshell, Newcastle possesses everything in its favor. It doesn’t take long for investors to find “the new Sydney” anywhere in the country; all they have to do is drive up here.Send us an inquiry right away if you’re interested in working with a local expert buyers agent to locate investment opportunities in the Newcastle area.