Newcastle Key Suburbs to Invest In

Sandwiched between expansive beaches and the picturesque vineyards of the Hunter Valley, Newcastle is one regional centre that really does have it all (except crowds and traffic). You’ll find great restaurants, cafes and bars, an emerging arts scene, amazing scenic walks and bike tracks, exciting sporting venues … the list goes on.

Newcastle & Hunter Investment property

Over the past couple of years, Newcastle’s property market has been booming, thanks to an influx of seachangers seeking a more relaxed lifestyle away from (but not too far from) the big city.

Greater Newcastle covers a wide geographical area, extending to Lake Macquarie, Cessnock, the Hunter and Port Stephens, which means that from a real estate perspective, the region covers the full range of possible investment opportunities – from cashing in on the holiday rental market though to urban redevelopment potential.

According to the latest figures from PropTrack, now could be a good time to get into the market – especially if your endgame is capital growth or passive rental income. Ongoing buyer interest in Newcastle has pushed the median house price up by 15% over the past 12 months, and with new infrastructure and developments in the works, the economic outlook for the region is strong. Likewise, rental demand shows no signs of slowing.

Following is a brief overview of a few suburbs that offer investment potential, and could be worth considering.


 1. Cardiff, 2285

Investing for long term growth

If you’re looking for a set-and-forget property investment, the key is finding quality suburbs that remain undervalued. Cardiff is one of these. Located just 12 km from the CBD and close to the northern shores of Lake Macquarie, Cardiff is highly liveable and appealing, but hasn’t yet experienced a price boom, which means it remains one of the more affordable pockets of Newcastle. With its convenient location and easy transport links, Cardiff is a suburb that will always be in demand, and will deliver relatively tidy rental yield while you wait for your pot of gold to grow. Property in Cardiff is predominantly established two, three and four bedroom homes and there are a few newer medium density developments.

  • Selling points: Close to the lake; excellent town centre with supermarkets, medical facilities, banks etc; five minutes to major shopping centres at Kotara and Glendale; Cardiff train station – Newcastle CBD 15 minutes by train.
  • Median house price: $729,375 (houses); $565,000 (units)
  • Annual growth: Based on five years of sales, Cardiff has seen a compound growth rate of 21.6% for houses and 13.2% for units
  • Median rental yield: houses $480 PW, annual rental yield of 3.7%; units $450 PW, annual rental yield of 4.5%


2. Anna Bay, 2316

Investing in a holiday home

A true summer idyll, Anna Bay is located at Port Stephens just north of Newcastle and takes in two picture-perfect surf beaches: Birubi Beach and One Mile Beach. Being an easy 2.5-hour jaunt from Sydney, this cute seaside township is gaining popularity for summer getaways or weekend escapes, and offers investors the potential to rake in the rental dollars during holiday peaks (check out or AirBnB to get a feel for rates). Tourist drawcards include the Port Stephens Surf School, Irukandji Shark & Ray Encounters.

  • Selling points: Great cafes (notably CREST Birubi Beach and Rubi Blue); Stockton Sand Dunes; snorkelling at Fishermans Bay and Boat Harbour.
  • Median house price: $950,000 (houses); $550,500 (units)
  • Annual growth: based on five years of sales, Anna Bay has seen a compound growth rate of 37.7% for houses and 15.3% for units
  • Median rental yield: houses $577 PW, annual rental yield of 3.5%; units $500 PW, rental yield of 4.2%


 3. Jesmond, 2307

Investing for rental returns

If you don’t mind the idea of university students living in your investment property, you might consider buying into Jesmond, a small suburb located adjacent to the University of Newcastle’s Callaghan Campus. According to its latest annual report, the university welcomed 39,096 students from 98 countries in 2021 – with these sorts of numbers you’ll never be short of potential tenants. Jesmond has its own shopping centre which includes a supermarket plus a range of dining options, a local pub, and is serviced by buses.

  • Selling points: Affordable, close to the university and public transport
  • Median house price: $738,000 (houses); $450,500 (units)
  • Annual growth: Based on five years of sales, Jesmond has seen a compound growth rate of 37.9% for houses and 9.9% for units
  • Median rental yield: houses $410 PW, annual rental yield of 3.1%; units $420 PW, rental yield of 5.0%


4. Cessnock, 2325

Investing in a fixer-upper

Cessnock is located in the Hunter region and is a stone’s throw from some of Australia’s most famous wineries. Cessnock was established in the late 1800s and today is a bustling town centre with a population of around 76,000. If you’re into renovating for profit, Cessnock offers a treasure trove of original-condition homes, particularly cute miners’ cottages, just waiting to be lavished with attention. The proximity to wine country (and easy drive from Sydney) means there’s potential to make some dollars on the holiday rental market if the time isn’t right to sell post-reno.

  • Selling points: Affordability, plentiful supply of unrenovated property, close to wineries and tourist attractions such as Hunter Valley Gardens and Hunter Valley Zoo.
  • Median house price: $571,200 (houses); $445,000 (units)
  • Annual growth: based on five years of sales, Cessnock has seen a compound growth rate of 37.6% for houses and 26.2% for units
  • Median rental yield: houses $425 PW, annual rental yield of 4.2%; units $335 PW, rental yield of 4.8%


5. Broadmeadow, 2292

Investing in a growth area

Broadmeadow is a centrally-located suburb offering all the convenience and lifestyle benefits that Newcastle offers – with easy access to the beaches, harbourfront, CBD, university and hospital, and excellent public transport options. But property investors will be more interested in what Broadmeadow is set to become. It’s been identified as a growth corridor by Newcastle City Council with some areas rezoned for medium and high density housing – which presents excellent opportunities for anyone interested in developing. In addition, 63 hectares of land around McDonald Jones Stadium is set to be transformed into an international sporting, residential and entertainment precinct called ‘Hunter Park’. Exciting times ahead for Broadmeadow.

  • Median house price: $835,000
  • Annual growth: based on five years of sales, Broadmeadow has seen a compound growth rate of 13.3% for houses
  • Median rental yield: houses $555 PW, annual rental yield of 3.6%; units $450 PW, rental yield of 4.0%

As a Newcastle mortgage broker, Margaret Godfrey has helped hundreds of local home buyers in the Newcastle area secure the home of their choice.

Want to know more about buying property in Newcastle or would like to find a property investment loan that suits your needs? Contact Margaret Godfrey today.

Source: Suburb property data from (PropTrack)




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