More and more, people are looking beyond Sydney when it comes to purchasing property. Prices in the greater sydney region are now so high that you don’t get a lot for your money there, with many people priced out of the market completely.
To help you in your quest for the best property to live or invest in, we’re shining a light on the Lake Macquarie (Newcastle) region so you can gain additional insight into the local market, suburbs within, and consider whether this is the right area for you. This coastal region, with increased affordability and impressive regional growth plans over the long term, should certainly be on your radar.
Read on to learn all about Lake Macquarie, part of the Hunter region just 90 minutes drive north of Sydney City.
The City of Lake Macquarie
Drone shot of Warner Bay in Lake Macquarie © Lake Macquarie City Council
Nestled along the northern parts of the Central Coast, in the lower Hunter region of New South Wales, Lake Macquarie is gaining attention from investors and homebuyers for a multitude of reasons.
With picturesque coastal views, attractions for both families and singles, relaxed coastal lifestyle, consistent economic development, and a great location south of Newcastle and not too far from Sydney CBD. Drive south for 90-minutes, down the toll-free M1 and you’ll be right in the action of Sydney CBD, for work or pleasure.
In the opposite direction, 10 minutes north will see you in the center of Newcastle. 25 minutes from international ports and 45 minutes away from Newcastle airport, Lake Macquarie has become a coveted location for those wanting to escape the hustle and bustle of capital cities and their sky-high property prices.
Proof of that is when PropTrack named Lake Macquarie suburb Teralba as third in the list of suburbs with the highest change in 5-year median sale price last May. From $500,000, it had jumped to $900,000; a whopping 80% price jump! Don’t stop reading just yet however, because it’s not all about Teralba. There are many suburbs within Lake Macquarie that are well worth your attention, even if growth like that makes you a little nervous buying-in right now.
We’ll take a closer look at the property prices, and trends, of a few different suburbs of interest within Lake Macquarie, so prospective homebuyers and investors like you will have a bird’s-eye view to help you on your property hunt.
Lake Macquarie Demography
Let’s look at some broader stats that give shape to the City of Lake Macquarie and its flourishing property market.
The 2021 ABS Census gathered Lake Macquarie’s population at 216,428 (year 2022) with a median age of 42. With the expectation that by 2041 the population will grow by another 39,000. That means we will need at least 12,000 more homes on top of the existing 88,815 private dwellings. These numbers suggest ongoing growth in the region’s population and associated local housing market. The average household weekly income is $1623, while the census noted average monthly mortgage repayments of $1950 (25% of monthly income). In comparison, the Sydney numbers for that same snapshot was income of $2077 and mortgage repayments of $2427, or 29% of monthly income.
The latest report of Lake Macquarie City Council said the local economy has generated $26.5 billion, which is 21% above that of the Hunter Region. The major contributors to this progress are rental, hiring, and real estate services, mining, health care and social assistance. And in 2021-2022, over $1.6 billion worth of development projects had their applications approved. This suggests there is no stopping the uptrend of progress in Lake Macquarie over the next few years.
Population: 216,428 (2022)
Population density: 333.7 persons/km2
Median Age: 42
Number of private dwellings: 88,815
Median household size: 2.5
Median weekly household Income: $1,623
Median monthly mortgage repayments: $1,950
Distance to Sydney: ~96km (90-minute drive)
Tourists visiting per year: 1.3 million
Businesses: 13,100
Economic Centres: 9
Jobs within the region: 61,600
2023 Lake Macquarie Local Housing Market Snapshot
The property landscape of Lake Macquarie has been on the rise over the past few years, among both homebuyers and investors. Recently however, we have seen a softening of the market particularly over the past couple of quarters. Does this represent a great time to buy? You’ll have to weigh up the stats and make your own decision.
Taking a look at the latest quarterly report (Q3) from Corelogic, for Lake Macquarie, the median sale price was sitting at $865,109 for houses and $642,684 for units.
The impact of rising interest rates are being felt in the market, with the number of home sales falling considerably, down 24.8%. However given the longer term population growth, this may also indicate under-supply.
The house listings stay an average of 37 days on the market before these are tagged as sold, compared to 32 days 12 months ago, with a total of 6,603 houses and units sold over the last year.
There’s no denying the red-hot growth seen during COVID times, when people were flocking away from the city, has softened. That was not a normal period, therefore decreased sales in the earlier part of this year was to be expected.
With many families once again starting to look beyond Sydney due to lifestyle benefits, or simply through being priced out of the Sydney market, it is unlikely the deflated growth will continue over the long term. Once you add in the ongoing development, population growth and economic activity, the longer term outlook becomes much more positive than a couple of slow quarters.
Let’s move on to some noteworthy suburbs in the region.
Redhead – Highest Median Price
Redhead gained the top spot for highest median house price. Houses there are selling as much as $1,747,500, indicating a 10.3% growth for the past 12 months. (Realestate.com.au, Nov. 2022 to Oct. 2023)
Redhead is known for its freshwater creeks and headland cliffs, and is home to the famous Redhead Beach. It is named after its headland that’s covered in red soil, appearing like a red head when viewed from the sea.
Median House Price: $ 1,747,500
Median House Rental Price: $677 per week
Median House Rental Yield: 2.7%
Median Time on Market (House): 49 days
Windale – Lowest Median Price
Houses in Windale are selling considerably lower compared to other suburbs. The median price is just $560,000, and has shown a decrease of 4.3% for the past year.
Rental prices however, continue to grow, up 9.1%. (Realestate, Nov. 2022 – Oct. 2023)
Windale is a small suburb (1.7 sq. km) on the west of Newcastle Inner City Bypass and Pacific Highway junction. It is home to the Windale Hub, a high-tech community lounge that boasts social spaces and library functions, set to open to the public in 2024.
Median House Price: $ 560,000
Median House Rental Price: $480 per week
Median House Rental Yield: 4.5%
Median Time on Market (House): 35 days
Catherine Hill Bay – Highest Median House Rent
The median house rent here in Catherine Hill Bay is sitting at $850 a week, which equals a yield of 3.2%. Generally speaking, lower priced properties provide higher rental yields, whereas higher priced properties provide more rent in absolute dollar terms. The suburb has returned a fairly flat 3.7% price growth over the past year. (RealEstate, Nov. 2022 – Oct. 2023)
Catherine Hill Bay is known for its historic coal mining village. It is where one of Australia’s best beaches is, the Catherine Hill Bay Beach – perfect for fishing, swimming, and surfing. The City of Lake Macquarie’s oldest continuous settlement, the miner’s cottages of the 19th century, is located here. .
Median House Rental Price: $850 per week
Median House Rental Yield: 3.2%
Median Time on Leasing Market (House): 32 days
Fassifern and Balcolyn – Lowest Median House Rent
Fassifern and Balcolyn both earn the spot for lowest median house rent, at $470 per week. Rental growth for the last 12 months is 4.4% for Fassifern, while Balcolyn has softened by 9.6%. This is coming off the back of a 39% rise over the two years prior, so it’s about time prices settled a little bit! (RealEstate Nov. 2022 – Oct. 2023)
Fassifern is a major stop when travelling by train from Sydney to Newcastle. It is located on the western side of Lake Macquarie. Two of the community amenities here are the Fassifern Oval that features an archery range and clubhouse and home to the Westlake Archers and Boolaroo Bowmen, and the Croft Oval with two soccer fields and a concrete cricket wicket.
Median House Rental Price: $470 per week
12-Month House Rental Growth: 4.4%
Median House Rental Yield: 4.1%
Median Time on Leasing Market (House): 19 days
Median House Price: $810,000
12-month House Price Growth: 12.5%
Median Selling Time on Market: 67 days
Balcolyn is located on the east side of Morisset Peninsula. The Shingle Splitters Point that features a 360° view round the Bonnells Bay and the surrounding lake is a favourite family picnic spot here.
The 2023 Unit Market Snapshot of Lake Macquarie
The PropTrack report on the national price of apartment units has indicated an increase too. For October, it climbed 0.31%, and is now sitting at 4.48% above the prices of units a year ago.
In the rolling 12-month Corelogic’s Property Value data retrieved November 11, the median sale price of units is currently $540,000, with market listings lasting 58 days on average. The total number of units sold is 690 year-to-date.
Eleebana – Highest Median Price for Units and Apartments
Eleebana has the title of highest selling price for units, reaching $835K, a growth of 34.7% in the past 12 months. While houses are selling 4% lower in the last year, house rentals have jumped to $750 per week, a 19% increase. (RealEstate Nov. 2022 – Oct. 2023)
Eleebana is a perfect place for starting families with young children, given that it has a children’s centre, a tennis centre, and public schools with sporting fields. It’s a peaceful suburb in the Warner Bay south, offering investors the choice of either waterfront properties or those near the suburb centre.
Median House Price: $1,215,000
Median House Rental Price: $750 per week
Past 12-month Growth in House Price: -4%
Median House Rental: $750 per week
Median House Rental Yield: 3.3%
Past 12-month Growth in House Rental: 19%
Median Time on Market for Houses: 46 days (sell), 23 days (rent)
Median Unit Price: $835,000
Past 12-month Growth in Unit Price: 34.7%
Wyee – Lowest Selling Price for Units
Being a small town, Wyee has the lowest median sale price for units and apartments, at $465,000 with 3.3% growth over the past 12 months, based on data from RealEstate.com (Nov 2022 – Oct 2023)
Wyee offers a relaxed lifestyle with its beautiful beaches, wildlife corridors, abundance of waterways, and proximity to shopping centres and transportation hubs.
Median House Price: $875,000
Past 12-month House Price Growth: -12.5%
Median House Rental Price: $580 per week
Past 12-month House Rental Growth: 11.5%
Median House Rental Yield: 3.7%
Median Time on Market: 75 days (selling), 24 days (lease)
Median Price for Units: $465,000
Past 12-month Growth in Unit Price: 3.3 %
Median Unit Rental Yield: 5.1%
Cameron Park – Highest Median Unit Rent
The unit rent in Cameron Park has seen steady growth of 11.6% in the past year, sitting at a median of $625 per week. Rents for houses sit at a median price of $670 per week. On the low end of the scale, a 2-bedroom house can be rented for $460 per week, which just goes to show the varied nature of different homes within the same suburb. RealEstate (Nov. 2022 to Oct. 2023)
Cameron Park is 2-minutes away from the M1 Freeway and 20-minute away from Newcastle CBD. It has a children’s playground, a skate park, and a BMX track housed in a new sports complex.
Median Unit Rental Price: $625 per week
Past 12-month Growth of Unit Rental: 11.6%
Median Units Rental Yield: 5.4%
Median Time on Market of Rental Units: 21 days
Median House Price: $865,000
Median House Rental Price: $670 per week
Past 12-month Growth of House Rental: 6.3%
Median Time on Market of Houses: 31 days (selling), 17 days (lease)
Wangi Wangi – Lowest Median Rent for Units
At just $270 per week, Wangi Wangi has the lowest rental price for units. The growth last year is reasonably flat at 3.8%. The median house rentals here are $500 per week, while houses are selling for $875,000. RealEstate (Nov. 2022 to Oct. 2023)
Wangi is known for the Dobell House, the house of the controversial Australian painter Sir William Dobell who won the 1943 Archibald prize for his portrait of Joshua Smith. It is also home to the Wangi Point Flora and Fauna Reserve, one of the six State Conservation Area around lake Macquarie.
Median rental price for units: $270 per week
Past 12-month Growth of Unit Rentals: 3.8%
Median Unit Rental Yield: 2.4%
Median House Price: $875,000
Median House Rental Price: $500 per week
Median House Rental Yield: 3.1%
The data above shows us that the Lake Macquarie property market will continue to grow in the next few years. While substantial fluctuations may occur between different property types and in the suburbs where these are located, you can see there is room for fantastic returns when purchasing the right home in the right suburb.
There is far more bang for your buck than you will find in the greater Sydney region, with many families still choosing to venture north and find their dream home at a much more reasonable price.
Are you ready to purchase your next home or investment property?
Reach out to Wisebuy Home Loans for expert advice to give you an idea on what you could borrow. Their professional, licensed brokers have access to more than 50 different lenders, market leading rates, and are ready to assist you, 24 hours a day.
With Wisebuy Home Loans, you can choose and select from great home loan deals tailored to your needs. Call them at 02 4961 4985 or email admin@wisebuygroup.com.au.
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