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The median price of houses in the Newcastle CBD surpassed $1 million for the first time earlier this year.
Much of this increased sales activity has been the result of Sydney buyers streaming into northern areas hoping to get more far greater value for their money. What you get in areas like Newcastle is so much more than what you get in some parts of Sydney for the same price and that’s largely what is luring Sydneysiders to the area.
Trickledown effects for satellite cities
One of the impacts of Sydney’s extreme growth over the last several years is the positive effect it has on investment property in Newcastle and similar areas. As the BIS Residential Property Prospects 2016 – 2019 report notes, “residential property prices in Newcastle and Wollongong usually benefit when Sydney experiences strong price growth and migration into these regional centres increases”.
According to BIS, over the years to 2018, Newcastle is anticipated to see 15 per cent. Whilst QBE anticipate a solid 12% by 2018 based on Newcastle having a very positive outlook, with new infrastructure spending off-setting the decline in investment in the coal sector. The widening price disparity with Sydney should incentivise migration from Sydney to the region.