Newcastle Property Market Update November 2020

By Herron Todd White
November 2020

What a year for the prestige market in the Newcastle region! Despite the COVID-19 tribulations that have hit the world hard this year, the prestige market in our region has held up surprisingly well with strong interest in some spectacular highend properties. We’ve seen record prices being smashed across the board and agents indicating they have buyers ready and impatiently waiting for more to hit the market. Upgrading is now a hot topic and many buyers have their eyes firmly on the prize to upgrade to a bigger, better property and by the looks of the record-breaking properties we showcase this month, we can safely say we have house envy.

First and most notably, a John Parade beachfront residence in Merewether recently sold for $7.25 million prior to auction. This sale not only broke records for the local area but for the entire LGA. Only weeks earlier, the record was set at 10 Ocean Street, Merewether, reportedly selling for upwards of $6 million. The selling agent advised there was plenty of interest from Sydney buyers, however upgrading locals who had been holding out for a John Parade residence were lucky enough to secure this one.

A record unit sale was also achieved for Newcastle this year, with one of the penthouses in the York apartment building selling for a staggering $5.45 million in July. Located on Newcastle Beach, the views from the penthouse are endless with wraparound views of Nobbys headland, the harbour, multiple beaches and the Wattagan Mountains

In Port Stephens, north of Newcastle, a record was set in Salamander Bay in January this year. Located on the crystal clear waters of Port Stephens, the views are breathtaking from this prestige property which sold for $4.775 million. The highest sale in 2019 was $3.5 million just ten months earlier.

In the Lake Macquarie area, a number of suburbs performed well above expectations this year. As mentioned in the August edition, a waterfront property in Eraring sold for $6 million which was well over the previous Lake Macquarie record of $4.25 million set in January 2020. The record set in January was the sale of the former Newcastle Lord Mayor’s lakefront property in Belmont. The unique property, set on half an acre of land, has a private jetty, boat shed and slipway for easy boat access and is the highest waterfront sale on the eastern side of the lake.

In the Hunter Valley, one of the most esteemed properties sold this year for $6.9 million. Known as Loggerheads, the property is set on 40 hectares and is rumoured to have been purchased fully
furnished by a well-known Australian model. The selling agent advised that this property has always been highly pursued for its privacy and provenance, being rich in wine history as the former home of the late winemaker Len Evans and before that, the Tyrrell family. The extensive landscaping was designed by Paul Bangay who is a well-regarded garden designer in Australia, adding to the prestige of the property. The homestead consists of three adjoining pavilions surrounded by a collection of outbuildings, established vineyard and elevated 360 degree views over the valley.

These record sales have shown that there is strong demand for properties in the Newcastle and Hunter regions in this prestige category. Newcastle is the second largest city in New South Wales and with strong population growth rates predicted, we hope this trend in the prestige market continues.

Liz McAllister
Property Valuer

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