Ideally situated in the Hunter Region of New South Wales, Newcastle is a city on the rise. As the second-largest city in NSW, Newcastle’s thriving economy, stunning beaches, and endless entertainment options have seen the local population grow by more than 21% over the last ten years.
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. We’ve compiled this list of Newcastle’s top 11 investment suburbs to help you choose where to invest your money.
Merewether, 2291
Known for its stunning beaches, surf breaks, and ocean pools, Mereweather is a popular suburb in Newcastle with a relaxed coastal lifestyle—properties in this waterfront suburb range from spacious family homes to beachside apartments. Mereweather’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, stores, schools, and amenities, Merewether’s investment value is high and constantly growing. Though the median house price is a little high at $1.8 million, 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: $1,852,000 (February 2022 – January 2023)
Median Unit Price: $815,000 (February 2022 – January 2023)
Population: 10,370
Curb 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 6 kilometres from Newcastle’s business district, Adamstown Heights is a sought-after family-friendly suburb. With plentiful green spaces and properties with pleasant views, this suburb is popular among families, downsizers, and retirees. The high quality of life in this peaceful location is appreciated by its residents.
Adamstown Heights offers new houses, apartments, and classic, older homes. Adamstown Heights 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 2023.
Distance to CBD: 6km
Attractions: Fernleigh Track, Glenrock State Park
Median House Price: $ 1,062,500 (February 2022 – January 2023)
Median Unit Price: $597,500 (February 2022 – January 2023)
Population: 5,212
Curb Appeal: Family friendly, plenty of green spaces for the family
Who Will Love It: Families and retirees
Mayfield, 2304
Mayfield is a north-western suburb in Newcastle set against the Hunter River. With a convenient location only 6 kilometres 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.
The low median house price of around $800,000 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: $810,000 (February 2022 – January 2023)
Median Unit Price: $625,000 (February 2022 – January 2023)
Population: 10019
Curb 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 just 6 kilometres west of Newcastle’s CBD. The housing stock includes older character houses, contemporary apartment complexes, and classic townhouses. New Lambton residents’ median income is higher than Newcastle’s average, making it an excellent option for investors looking to rent their properties.
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, 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: $1,057,500 (February 2022 – January 2023)
Median Unit Price: $635,000 (February 2022 – January 2023)
Population: 9040
Curb 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 Newcastle, including Newcastle Beach. Surrounded by nature walks, parks, hills, and 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 is 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.
Distance to CBD: 1km
Attractions: Newcastle Beach, King Edward Park, Shepherds Hill, Fort Scratchley
Median House Price: $1,200,000 (February 2022 – January 2023)
Median Unit Price: $600,000 (February 2022 – January 2023)
Population: 2024
Curb Appeal: Steeped in history & highly sought after
Who Will Love It: Young professionals and retirees
Lambton, 2289
Lambton is a 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 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.
Distance to CBD: 6km
Attractions: Lambton Park, Hunter Stadium
Median House Price: $950,000 (February 2022 – January 2023)
Median Unit Price: $610,000 (February 2022 – January 2023)
Population: 5899
Curb Appeal: Family-friendly suburb
Who Will Love It: Families, young professionals, and retirees
Charlestown, 2290
One of Newcastle’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. In addition, Charlestown has reliable transport, medical facilities and 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.
Distance to CBD: 10km
Attractions: Charlestown Square, Glenrock State Park
Median House Price: $ 907,900 (February 2022 – January 2023)
Median Unit Price: $ 652,000 (February 2022 – January 2023)
Population: 15992
Curb Appeal: Lifestyle meets amenities
Who Will Love It: Families, young professionals, 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 contemporary apartments. Hamilton’s main commercial centre, Beaumont Street, is known for its high-quality array of shops and restaurants.
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: $ 1,060,000 (February 2022 – January 2023)
Median Unit Price: $ 682,500 (February 2022 – January 2023)
Population: 4615
Curb Appeal: Trendy & high growth potential 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. Cooks Hill is also home to Newcastle’s fashion precinct, Darby Street, where residents buy various fashion items, homewares, flowers, and boutique accessories.
Cooks Hill is especially prized for its historic terraces and its wide range of trendy boutique 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.
Distance to CBD: 2km
Attractions: Darby Street, Civic Theatre
Median House Price: $ 1,325,000 (February 2022 – January 2023)
Median Unit Price: $ 825,000 (February 2022 – January 2023)
Population: 4162
Curb Appeal: Trendy, young, up and coming suburb
Who Will Love It: Young professionals and retirees
Wickham, 2239
Only 2 kilometres from 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. Wickham is constantly changing and intakes many young students, professionals, and families. Full of amenities, great food and dining options, and entertainment centres, Wickham is the perfect inner-city location for Newcastle dwellers.
Traditional homes, modern apartments, and renovated terraces comprise most of Wickham’s housing stock. Its rental yields are solid due to the high rental 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
Median House Price: $ 1,185,000 (February 2022 – January 2023)
Median Unit Price: $ 727,500 (February 2022 – January 2023)
Population: 3756
Curb 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 central Newcastle, making Stockton a prime position 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 $1.1 million and a median unit price of $480,000, Stockton is an excellent option for investors and homebuyers.
Distance to CBD: 12km
Attractions: Stockton Beach, Shipwreck Walk
Median House Price: $ 1,100,000 (February 2022 – January 2023)
Median Unit Price: $480,000 (February 2022 – January 2023)
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 2023 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.
