- Quentin von Essen
Surfing the Property Wave
As Sydney siders continue to travel northward en-masse to the Hunter Region, population numbers and property prices continue to climb to unprecedented levels.
While Australia’s major cities may have borne the brunt of the majority of COVID cases, casualties and lockdowns throughout 2020, a post-pandemic Australia suggests regional centres such as the Hunter and, in particular, Newcastle and Lake Macquarie, will see the greatest long-term transformation with increasing population and demand for housing causing median prices to soar to record levels in 2021. In some cases, more than four times the pace of capital city markets.
This trend has been happening for too long to be considered a short-term phenomenon. Sydney has been losing population to regional migration for ten years and Melbourne for the past 3 to 4 years.
This demand for regional housing can be attributed to a range of factors. Many people are seeking a different lifestyle, one that’s more affordable and relaxed, away from the big expensive and congested cities. In addition, technology and the growing acceptance of commuting and work-from-home scenarios are boosting additional demand for regional centres.
The reality is that it is less about the pandemic and more about lifestyle, affordability and technology. And it’s not going away any time soon.
For example, Newcastle experienced 4.6% population growth between the 2011 and 2016 censuses, whilst Lake Macquarie saw a 4.4% increase in population over the same period. ABS data shows that COVID only accelerated that trend, with Australian capital cities experiencing a net loss of 11,200 people during July, August and September in 2020, the greatest quarterly net loss since 2001.
Interestingly, when people move out to regional areas, they still like to remain in striking distance of capital cities. It is, therefore, no coincidence that the three regional NSW areas that performed the most strongly over the last decade, namely Newcastle and Lake Macquarie, the Southern Highlands Shoalhaven region and the Illawarra – are all within ‘commutable’ distance of Sydney.
The better lifestyle promised by regional coastal areas coupled with the ease of access to Sydney’s amenities is a winning combination and also helps explain why Newcastle and Lake Macquarie properties have seen an increase in value.
SO, WHAT IS MAKING NEWCASTLE SO ATTRACTIVE?
Apart from being an attractive business and investment location, the Hunter offers residents a lifestyle that is difficult to match, and it does so at a cost of living well below that of the major metropolitan areas across Australia.
In addition, significant investments, past and present, have underpinned Newcastle’s transformation into a bustling multicultural city and a vibrant place to live with a diverse economy based around both industry and the service sector.
These include the now complete, $368 million light rail system, the Newcastle East End mixed-use development, the $66 million Newcastle Airport runway upgrade, the reimagination of the Broadmeadow sport and entertainment precinct, the John Hunter Hospital Innovation Precinct and the University of Newcastle’s increasing expansion into the CBD – amongst others.
“Lifestyle” can mean many things to many people, and for those of us lucky enough to live here, there is no better place to live or a place that offers so much diversity with pristine beaches, limited congestion, a strong sense of community - not to mention an outstanding place to raise a family with good schools, including private schools, health and sporting facilities and all the other facilities and amenities that families need to lead comfortable and fulfilling lives.
Yes, the secret is out, and the exodus to an affordable lifestyle has become the dominant trend in Australian real estate across the nation, with city slickers residing in the major capital cities now fast-forwarding their dreams of pursuing a life filled with more affordable housing, flexibility in their work-life balance and evenings winding down on a golden beach.
