As the second-largest city in New South Wales, Newcastle offers a great balance between city facilities, beautiful beaches and quiet roads. For many, it’s the perfect place to raise a family and most people who grow up here either stay for life or come back to start their own family after a few years in a bigger city in Australia or overseas.
It’s no surprise that Newcastle’s real estate market is in hot demand, from young professionals looking for a sea change to families looking to escape the hustle and bustle of Sydney. Prices jumped significantly over the covid years, but there are still bargains to be found – especially when you compare like-for-like with Sydney.
Not sure where to start? We’ve compiled this list of Newcastle’s top 11 investment suburbs for 2025 to help you choose where to invest your money. And if you’re looking to buy here, a mortgage broker in Newcastle can help you get the best deal.
Jump ahead to read about a specific suburb:
- Merewether
- Adamstown Heights
- Mayfield
- New Lambton
- The Hill
- Lambton
- Charlestown
- Hamilton
- Cooks Hill
- Wickham
- Stockton
Merewether, 2291
Above all else, Newcastle is a beach city. If you want a suburb that’s close to the sand, has great surf breaks and also some of the best cafes in the city, then you want to buy in Merewether.
Properties here range from spacious family homes to beachside apartments and although property prices reflect the high demand, Merewether’s rental yields are some of the highest in Newcastle.
Merewether’s professional, working-class residents love the ease of access to the city and nearby beaches. Full of quality restaurants, shops, schools and amenities, Merewether’s investment value is high and constantly growing. Though the median house price is a little high at $2.1 million (up from $1.8m in 2023), the constant demand and desire for properties in Merewether make it a practical choice for modern investors.
Distance to CBD: 4km
Attractions: Merewether Beach, Merewether Baths
Median house price: $2,160,000 (May 2025, realestate.com.au)
Median unit price: $795,000 (May 2025, realestate.com.au)
Median rental price (house): $872 (May 2025, realestate.com.au)
Median rental price (unit): $585 (May 2025, realestate.com.au)
Population: 10,370
Kerb appeal: Idyllic beach side suburb
Who will love it: Beach lovers, families, young professionals and retirees.
Adamstown Heights, 2289
A quiet, beautiful residential gem just six kilometres from the heart of Newcastle, Adamstown Heights is a highly sought-after family-friendly suburb. With lots of green spaces, properties with sweeping views, and quiet roads, this suburb is popular with growing families. Close to both the Fernleigh Track and Glenrock, it’s a great place to base yourself if you love having the great outdoors with easy reach.
Adamstown Heights mostly offers larger houses, with a nice mix of new and classical designs. The suburb has experienced strong capital growth over recent years and is a smart pick for investors seeking a top-quality property in Newcastle to grow their finances with in 2025.
Distance to CBD: 6km
Attractions: Fernleigh Track, Glenrock State Park
Median house price: $1,125,000 (May 2025, realestate.com.au)
Median rental price (house): $775 (May 2025, realestate.com.au)
Population: 5,212
Kerb appeal: Family friendly, plenty of green spaces for the family
Who will love it: Families
Mayfield, 2304
Found on the fringes of Newcastle, Mayfield is one of the city’s more affordable suburbs which is undergoing huge development at the moment. With a convenient location from the CBD, it boasts diversity amongst its residents and buildings. With a balanced mixture of residential and commercial buildings, Mayfield is popular with first-home buyers, young professionals and students. Rentals here are in high demand.
The low median house price of around $910,000 (up from $810,000 in 2023) makes it a smart, affordable option for investors looking for profitable properties. The suburb has modern apartments, traditional worker’s cottages, and townhouses. It is also close to the University of Newcastle. With affordable housing, proximity to the city, and easy access to well-connected transport, Mayfield is an excellent choice for new investors.
Distance to CBD: 5km
Attractions: Waratah Park, Mayfield Pool
Median house price: $910,000 (May 2025, realestate.com.au)
Median unit price: $677,500 (May 2025, realestate.com.au)
Median rental price (house): $650 (May 2025, realestate.com.au)
Median rental price (unit): $492 (May 2025, realestate.com.au)
Population: 10,019
Kerb appeal: Working-class suburb
Who will love it: First home buyers and families
New Lambton, 2305
The peaceful suburb of New Lambton is a friendly, convenient location to the west of Newcastle’s CBD. The housing stock includes older character houses, modern apartment complexes and classic townhouses. New Lambton residents’ median income is higher than Newcastle’s average, making it a higher-end investment than many other suburbs.
New Lambton offers convenient, time-efficient transport links to central Newcastle and neighbouring suburbs, making it an excellent choice for those who commute often. New Lambton’s property values have been increasing steadily, especially units which are up from $635k to $672k from early 2023, so now is a good time to get in on the action and find a place to invest your money.
Distance to CBD: 6km
Attractions: Blackbutt Reserve, Westfield Kotara
Median house price: $1,130,000 (May 2025, realestate.com.au)
Median unit price: $672,500 (May 2025, realestate.com.au)
Median rental price (house): $700 (May 2025, realestate.com.au)
Median rental price (unit): $550 (May 2025, realestate.com.au)
Population: 9040
Kerb appeal: Family-friendly suburb
Who will love it: Families, young professionals and retirees
The Hill, 2300
One of the most prestigious suburbs in Newcastle, The Hill boasts beautiful unobstructed city views and easy access to the best beaches in town, including Newcastle Beach. Surrounded by nature walks, parks, hills and historic attractions, The Hill is a tranquil but convenient suburb for Newcastle residents who can afford to live there.
The Hill is a comfortable place to settle down, full of grand homes, spacious apartments and charming townhouses. The Hill is in high demand, and it’s rare to find a vacant property there; homeowners, renters and investors alike jump at the chance to snag a place in this exclusive location. Consistent high rental yields and capital growth makes The Hill one of the best suburbs for property investors. Houses average almost $1.9m in 2025, up from $1.2m in 2023.
Distance to CBD: 1km
Attractions: Newcastle Beach, King Edward Park, Fort Scratchley
Median house price: $1,892,500 (May 2025, realestate.com.au)
Median unit price: $650,000 (May 2025, realestate.com.au)
Median rental price (house): $855 (May 2025, realestate.com.au)
Median rental price (unit): $535 (May 2025, realestate.com.au)
Population: 2076
Kerb appeal: Steeped in history
Who will love it: Young professionals and retirees
Lambton, 2289
Not to be confused with New Lambton, Lambton is another flourishing suburb with great quality of life. The suburb is fast growing and developing to be one of Newcastle’s most popular places to live. It is close to the city (just 6 kilometres away) and has many convenient and reliable transport links, shops and services. Lambton Pool is one of the most popular in the area, large park is filled with families on sunny days and the shopping street is full of local favourites.
Lambton has a satisfying mix of housing stock, from new houses to modern apartment complexes to traditional homes. Many of the older places in Lambton are ornately designed and spacious, some with built-in stained-glass windows. Lambton’s economy and employment opportunities are substantial, making it a solid choice for investors looking to profit from a property here.
Property prices are growing healthily. The median house price has gone up from $950k to $1.1m since 2023 while the median unit price has risen from $610k to $691k in the same period.
Distance to CBD: 6km
Attractions: Lambton Pool, Hunter Stadium
Median house price: $1,100,000 (May 2025, realestate.com.au)
Median unit price: $691,500 (May 2025, realestate.com.au)
Median rental price (house): $650 (May 2025, realestate.com.au)
Median rental price (unit): $490 (May 2025, realestate.com.au)
Population: 5899
Kerb appeal: Family-friendly suburb
Who will love it: Families, young professionals and retirees
Charlestown, 2290
Although technically in Lake Macquarie, Charlestown still falls into the Greater Newcastle region. One of the area’s most popular shopping destinations, Charlestown is a bustling suburb south of the CBD with many excellent investment opportunities. Its shopping centre, Charlestown Square, is the largest in the Hunter Region and regularly draws in visitors and tourists, especially with its relatively recent addition of The Corner – an outdoor food court made up of local restaurants and bars. Charlestown is a mini-CBD in itself and has reliable transport, medical facilities and other amenities.
With affordable house and unit prices for modern apartments and older-style houses, Charlestown promises solid rental yields and capital growth in property value. Its popularity, commercial relevance and convenience make it a top choice for investors looking for properties in Newcastle. High rise apartment towers are a new addition to the suburb’s skyline, but something that looks to continue growing in both popularity and size.
Distance to CBD: 10km
Attractions: Charlestown Square, Charlestown Pool
Median house price: $930,000 (May 2025, realestate.com.au)
Median unit price: $645,000 (May 2025, realestate.com.au)
Median rental price (house): $650 (May 2025, realestate.com.au)
Median rental price (unit): $540 (May 2025, realestate.com.au)
Population: 15,992
Kerb appeal: Lifestyle meets amenities
Who will love it: Families, first-time buyers and retirees
Hamilton, 2303
Well-connected to the CBD and surrounding areas, Hamilton is a trendy inner-city suburb with a wide variety of terrace houses, family homes and modern apartments. Hamilton’s main commercial centre, Beaumont Street, is known for its high-quality array of bars, cafes and restaurants. A newly revamped Gregson Park has boosted the suburb’s appeal to families.
With a median house price of just over $1 million, Hamilton is an excellent choice for investors who want a property close to the city. The suburb’s convenience, charm, and overall appeal promise long-term rental returns and capital growth.
Distance to CBD: 2km
Attractions: Beaumont Street, Gregson Park
Median house price: $1,015,000 (May 2025, realestate.com.au)
Median unit price: $700,000 (May 2025, realestate.com.au)
Median rental price (house): $677 (May 2025, realestate.com.au)
Median rental price (unit): $520 (May 2025, realestate.com.au)
Population: 4615
Kerb appeal: Trendy, high-growth suburb
Who will love it: Young professionals and retirees
Cooks Hill, 2300
The inner-city suburb of Cooks Hill is only a 5-minute walk from the city centre and the nearby beach. The convenience of Cooks Hill and its bustling, vibrant character have made it a popular living destination for families and young professionals. We’re in the perfect position to say this — our mortgage brokers work out of Cooks Hill and see its attractions every day. The suburb is also home to Newcastle’s fashion precinct, Darby Street, where residents buy various fashion items, homewares, flowers and boutique accessories. Darby Street leads to Civic Park, Newcastle Art Gallery and the city’s largest library.
Cooks Hill is especially prized for its historic terraces and its wide range of trendy stores. The properties range from modern apartments and townhouses to Victorian-era terraces. An insatiable demand for rental properties in this area makes Cooks Hill a wise option for investors, who will receive high rental yields and sure capital growth. Prices are on the rise too – houses are up from $1.3m to $1.5m since 2023.
Distance to CBD: 2km
Attractions: Darby Street, Civic Park, Newcastle Art Gallery
Median house price: $1,517,000 (May 2025, realestate.com.au)
Median unit price: $800,000 (May 2025, realestate.com.au)
Median rental price (house): $740 (May 2025, realestate.com.au)
Median rental price (unit): $610 (May 2025, realestate.com.au)
Population: 4162
Kerb appeal: Trendy, young, up and coming suburb
Who will love it: Young professionals and retirees
Wickham, 2239
Quickly transitioning into Newcastle’s central business district, the inner-city suburb of Wickham is a popular industrial location that has benefited from recent redevelopment, combining old and new housing stock. Newcastle Interchange sits in this suburb, combining train, tram and bus routes. In recent years, Wickham has seen an explosion of apartment towers, catering to first-time buyers and downsizers. Full of amenities, great food and dining options, Wickham is the perfect inner-city location.
Traditional homes, modern apartments and renovated terraces comprise most of Wickham’s housing options. Its rental yields are solid due to the high demand, making Wickham a highly desirable suburb to invest in. With a recent surge in property prices, it’s a great time to invest in Wickham, as its profits are only expected to grow over the coming years.
Distance to CBD: 2km
Attractions: Honeysuckle Precinct, Newcastle Marina, Newcastle Interchange
Median house price: $900,000 (May 2025, realestate.com.au)
Median unit price: $710,000 (May 2025, realestate.com.au)
Median rental price (house): $650 (May 2025, realestate.com.au)
Median rental price (unit): $700 (May 2025, realestate.com.au)
Population: 3756
Kerb appeal: Industrial, working appeal suburb
Who will love it: Young professionals and retirees who enjoy a city lifestyle
Stockton, 2295
Positioned on a peninsula north of Newcastle’s city centre, Stockton is known for its relaxed atmosphere, calming beaches and a great mix of properties. Families, retirees, and professionals residing in Stockton benefit from Stockton’s beach vibe and providential convenience.
Residents can easily take a quick ferry from Stockton to Newcastle Mall, making it a prime [;ace for those who work in the city and enjoy being by the beach. Stockton also has strong rental returns and steady capital growth. With a median house price of $1.25m (up from $1.1m in 2023) and a median unit price close to half a million, Stockton is an excellent option for investors and homebuyers.
Distance to CBD: 12km
Attractions: Stockton Beach, Shipwreck Walk
Median house price: $1,250,000 (May 2025, realestate.com.au)
Median rental price (house): $650 (May 2025, realestate.com.au)
Population: 4807
Curb Appeal: Beach lifestyle at your doorstep
Who Will Love It: Beach lovers, families and retirees who enjoy a quieter lifestyle
Choosing your Newcastle investment property
All 11 of these suburbs offer promising returns for property investors in 2025 and beyond. Remember that seeing sizeable profits from your property requires patience and careful decisions.
In your search for your first or next investment property, consider the location, the rental demand, the local attractions and amenities, the trends of the area, and the potential for capital growth. Be sure to conduct your research thoroughly, and if you need more clarification, consult a professional for advice.
