Risingprices of units due to ‘perfect storm’
LEAP IN PRICE: The value of unit 308 at 185 Darby Street, Cooks Hill, rose $145,000 between 2010 and 2014. INNER-city units have piled on more than 20per cent equity for their owners in the past 12 months, if latest figures are anything to go by.
Domain recently released the percentage changes in property medians for the past 12 months which showed Newcastle LGA unit prices had climbed a whopping 23.6per cent over the period.
Domain senior economist Dr Andrew Wilson said the double-digit growth showed the Newcastle market, just like the Sydney market, ‘‘just keeps on keeping on’’.
He said the positive feel of the inner city was translating its way into ‘‘robust’’ housing market activity in what was a growing community with plenty of new construction coming through.
‘‘Higher-quality development is pushing up prices. Over the last six months, we recorded 320 sales of units; quite a heady number.’’
With 380 units approved for building in the city of Newcastle over the preceding 12-month period, it was likely many of those 320 sales were for new apartments off-the-plan, Dr Wilson said.
PRDnationwide Newcastle New Projects managing director Mark Kentwell described current conditions in Newcastle as ‘‘the perfect storm’’.
“Infrastructure and business growth has been the catalyst to significant residential development in Newcastle,” Mr Kentwell said.
“And as the population grows, business owners will be encouraged to set up shop to service the growing residential population.”
According to research by PRDnationwide, there are an estimated 850 new dwellings being built in Newcastle CBD.
Nine projects due for completion between now and 2017, and with a collective end value of between $250million and $300million, include The Wren, Icon Central, Tattersalls on Watt, 45 Bolton Street, Arena, Civic Green, Spire Apartments, M on Watt and Peniche Apartments.
“Non-local investors and outpriced young professionals are looking to alternate metropolitan areas like Newcastle as the Sydney market continues to heat up and become pricier,” Mr Kentwell said.
Sydney’s median house price is now $843,994, with the median unit price also a record at $580,861.
By comparison, the median house and unit prices in Newcastle LGA were close to converging, Dr Wilson said.
Median house prices are at $460,000 while the median unit price is at $445,000.
LEAP IN PRICE: The value of unit308 at 185 Darby Street, Cooks Hill, rose $145,000 between 2010 and 2014.