Newcastle Property Market Update July 2020
First up, a COVID update.
Much like last month, with COVID-19 still present in Australia, it is quite difficult to pinpoint exactly what is going to happen with the local property market. With restrictions around open houses and auctions being lifted, there has been an increase in potential buyers visiting properties for sale; however, we are still not seeing anywhere close to the sales volumes we would normally expect.
Agents in the area are reporting numbers of properties being listed are on the increase but they are down on the same period last year due to the ongoing pandemic. The most recent weeks have seen widespread activity with properties still being sold and the savvy investor on the lookout for a bargain. Across the Newcastle and Hunter region house prices have remained relatively flat across the board with the region proving to hold its own in light of recent global events.
Now onto this month’s topic.
With our lazy $700,000 we’ve chosen to spend in the suburb of Woodberry NSW, and buy not just one, BUT TWO houses. Where is Woodberry you ask? Great question. Woodberry is located between two of the largest towns in the Hunter region, approximately 21kms south east of Maitland and 22kms north west of Newcastle. The suburb is well serviced by shopping facilities and schools with the Stockland Greenhills major shopping centre located in East Maitland and a number of primary and secondary schools close by. Public transport is readily available with a number of buses running the entire suburb and Beresfield Train Station just 1.5kms away. Commuters to Newcastle are only a 20 minute train ride or 25 minutes by car or a short 15 minute train or car ride from Maitland.
Woodberry is also strategically located close to the new Maitland Hospital (approximately 10kms) which is currently under construction, and on track to open early 2022. The new hospital will provide great employment opportunities within the area and meet the growing health service needs for the Hunter Valley.
Now that we’ve established its strategic location close to major CBD’s, shopping, schools, hospital and transport. Let’s look at some stats!
According to Corelogic the median sale price for houses in Woodberry NSW is $330,000 (for the 12 months to 31/03/2020). Over the last 5 years the suburb has seen growth of 4.2% per annum and 3% per annum over 10 years. The median sale price for houses in the Maitland LGA over the same period was $480,000; with growth of 4.6% per annum and 4.0% per annum over 5 years and 10 years respectively.
The median rental yield in Woodberry is 5.7% gross with a median rent of $359 per week (for the 12 months to 31/03/2020). That sure beats a 1% return on a term deposit! The median rental yield in the Mailtand LGA over the same period was 4.6% gross.
Here are some examples of recent sales and rentals in the area.
8 Curlew Crescent Woodberry sold for $340,000 in March 2020 as pictured below. The property was purchased by an investor and rented at settlement for $360 per week. Representing a gross yield of 5.50%.
16 Kookaburra Parade Woodberry recently sold for $323,000 in May 2020 as pictured below. The selling agent advises the property would rent for approximately $340 per week. Representing a gross yield of 5.47%.
Speak with a Newcastle Mortgage Broker today.