The Newcastle region in New South Wales is a popular destination for homebuyers due to its excellent weather, location, and strong economy. The region’s picturesque beaches, booming industries and vibrant culture have historically benefited its property market. It’s a place that Wisebuy is proud to call home. However, like many areas across Australia, Newcastle’s property prices have experienced a state of flux since the global pandemic in 2020.
To stay prepared and equipped to navigate the property market in 2025, it’s essential to research and understand the past and current real estate trends in Newcastle, NSW. This article will take a look at Newcastle’s housing market — past, present, and future — and identify key factors influencing property prices and the best high-growth suburbs to watch in 2025.
Newcastle, NSW – 2025 region profile
Newcastle is located on the Hunter River, about 160km north of Sydney. With a total region population of half a million people in 2025 and a city population of 348,539, Newcastle is a significant economic and education hub for the Hunter Region.
Here are some key statistics about the Newcastle region for 2025:
- Population (significant urban area): 508, 437
- Population (urban centre): 348,539
- Population growth rate: 1.61%
- Population density: 1,117 people per kilometre
- Median weekly household income: $1,760
- Median house price: $901,500
- Median unit price: $680,000
- Median house rental price: $780
- Median unit rental price: $690
(Sources: ABS, Real Estate, Core Logic, PropTrack)
A historical look at Newcastle’s housing market
Newcastle’s property market experienced a significant boom in the late 19th and early 20th centuries due to the city’s strong economy and growing population. In recent decades and coming into the 21st century, Newcastle’s property market has continued to grow, as has its economy. Newcastle’s economy is strengthened by the major industries at work in the city, including manufacturing, mining and tourism. Newcastle also benefits from its proximity to Sydney — one of Australia’s most prosperous and populated cities.
The Newcastle region population is the driving factor behind Newcastle property trends. The population nearly doubled in the last 50 years. Growth has slowed in recent years to a current growth rate of 1.61% but has remained consistently positive since 1950 — the growth rate ranges from 0.25% to 5.11%. According to NSW Government predictions, the region’s population will grow by 86,000 by 2041 — meaning Newcastle will have more residents than the entirety of Northern Territory’s 2025 population. Driving factors behind population growth include the strength of the economy and the availability of jobs.
Average house prices & the state of the real estate market in Newcastle
Newcastle’s average house and unit prices have historically increased in accordance with the economy and the rising demand for properties. Around the time of COVID, property prices rose significantly however there has been a marginal slowdown of this trend — and even a small turnaround — more recently.
The average house and unit prices were $901,500 and $680,000, respectively, in Quarter 2 of 2024. According to recent data from Quarter 1, 2024, those average prices were $882,150 and $722,500. So while house prices have risen, the median price of a unit in Newcastle has dropped. This may be a result of a higher number of apartment blocks being built on Hunter Street, Adamstown and elsewhere in the city.
Even though property prices are down, rental prices are still rising — especially for apartments, which are much more popular for buying and renting in the Newcastle region and CBD. Also, vacancy rates in the Newcastle region are low — around 1%. In June 2024, the median rent for a house in Newcastle was $650 and for a unit $570. These are very similar to the previous quarter (houses were still at $650 but units had risen $10 from $560). If you look back a year to June 2023, the median rent has gone up from $620 for a house and $550 for a unit.
The combination of these trends poses an interesting state for the Newcastle property market in 2025. With the cost to buy a unit dropping but the median rent rising, some are saying that now could be the perfect time to invest in property and profit from rental yields. And with the Big 4 predicting rate cuts over 2025, things may become even more favourable.
Key factors influencing Newcastle’s property market in 2025
It’s no secret that Newcastle has an attractive property market right now, but what’s causing that?
Global and local economy
Newcastle’s property market is heavily affected by economic trends and, subsequently, the cost of operations. A strong economy (global and local) can increase the demand for housing — which can drive prices up. As a central employment hub, Newcastle’s economy and population have been consistently strong, so property prices have seen an overall increase from year to year and decade to decade, albeit with a slight decline this past year, likely linked to a reduction of job opportunities as more people move interstate for work.
Increased demand for properties
In 2025, there is a high ongoing demand for rental properties and investment properties alike. With a rise in immigration numbers after the border closures of 2021, plus a growth in remote working, there are a lot more people looking to move to Newcastle from overseas and Sydney, where property prices are generally a lot higher.
The continued growth of property investment
The popularity of buying an investment property in Australia shows no sign of slowing down. As mentioned above, the combo of unit prices dropping, RBA rates potentially dropping and median rents rising add up a very enticing market for investors.
Property market trends in Newcastle for 2025
While predicting future trends can make us all look foolish — you only have to go back a few years to see how the pandemic made every prediction hugely off track — there are some indicators that make 2025 a promising year.
Investment properties: The demand for investment properties in Newcastle is driven by strong rental yields, increased competition and a slight decrease in property prices (mainly for units). These could all add up to make 2025 a promising time to buy an investment property and wait for property prices to go back up.
Average rental price: Newcastle’s rental prices for houses averaged out at $650 per week between April and June 2024 and $570 per week for units. Rental prices for houses are up $30 a week from the previous year (4.8%), while they ‘re up $20 a week for units (3.6%), according to the latest data from PropTrack. In the short term, unit rent has seen a quarterly growth while housing rent has stayed steady.
Rental yields: As with many other cities, Newcastle’s rental yields are expected to remain fairly strong, making many predict it to be a good time for investors to rent out their properties, especially apartments.
High growth areas to keep an eye on in Newcastle in 2025
It’s one thing to know that you want to invest, but it’s another knowing where to invest. One of the best ways to earn a passive income is to invest in a property and watch it grow over time. Earlier in 2025, Real Estate released their Hot 100 Suburbs for Investment in Australia. Some of their predicted best high-growth suburbs to watch in Newcastle include:
- Adamstown Heights: A residential area that’s growing in popularity because of its affordable house and units prices.
- Mayfield: Noted for its location, population growth and demographic change.
Honourable mentions were also given to Lambton, Kotara, Newcastle and Merewether.
Other nearby areas include:
- Long Jetty: An area of the Central Coast with predicted gentrification and demographic change in a stunning location.
- Point Clare: Also in the Central Coast, Point Clare is known for its amenities and investment prospects.
These suburbs present some of the best investment opportunities in Newcastle. If you’re considering investing in Newcastle, it’s essential to keep an eye on house prices and property trends to make an informed decision about where you invest and what type of property you purchase.
Interested in our view on the Hot 100? Brad East and Aaron Downie broke it down in this episode of Talk Property To Me:
Navigating the 2025 Newcastle property market
Newcastle’s 2025 property market continues to be dynamic and everchanging, with constantly evolving real estate trends. The rises and falls in property prices and rental demand are dependent mainly on population, economic growth, and post-pandemic motivations, but it can be hard to tell why they fluctuate the way they do. This makes the Newcastle property market complex, hard to predict, and challenging to navigate. That’s where Wise Buy Group can help. Our expert team of mortgage brokers can get you access to the most competitive loan rates in Newcastle, helping you find the best property in this NSW region. We are Newcastle locals who understand the region’s unique dynamics, so we can help you make the best decisions in the 2025 market.
