House Prices
Prices in 2013 improved dramatically recovering from eight years of relative flat residential price changes. Price growth for Newcastle houses was up 8.2% for the year to December 13.With very strong growth in capital cities such as Melbourne 21.9% and Sydney 15.1%.
Future price growth estimates to 2016 by BIS Shrapnel show’s Sydney’s growth is 6.6% pa and Newcastle at around 4.9% pa.
House prices improving as a result of;
Lower interest rates – The RBA expect the cash rate to remain steady until 2015.
Home building levels below demand – In NSW, Housing stock deficiency is currently around 50,000 homes. (Nationally 99,000 dwellings).
Tight rental vacancies – Vacancy rates Sydney 1.8%.
Newcastle – Local Market Comment
Our experience is market is ‘white hot’ for well priced property under $700,000 and extremely buoyant for properties to $1.5M and firming for the very top end. Off the plan sales have been very strong all year.
The revitalisation of Newcastle CBD, such as the Newcastle University inner city campus – NewSpace, the new $95M court house and the variations to the railways and light rail is having a huge positive affect the city as a whole, commercial property, inner city apartments and houses.