The slow and inevitable fade of the Sydney market is happening in concert with a rise in New South Wales regional markets.
Hotspotting’s monitoring of sales activity shows there are growth markets across the state – indeed Regional NSW now has more upwardly-mobile markets than Sydney does.
The Newcastle region and the Central Coast stand out, as markets a little north of Sydney head a strong NSW Regional sector.
While the Sydney market is past its peak and has relatively few growth markets compared to 2015/2016, Regional New South Wales has risen.
Our Spring survey has identified almost 50 regional towns or suburbs with rising markets – a little down on the number revealed in the Winter report, but still very strong.
I’ve observed previously that Newcastle and the regions surrounding it have provided the stand-out precinct in Regional NSW.
This remains the case, but with a new market leader - the Lake Macquarie LGA on the fringe of Newcastle.
This municipality has five suburbs where sales activity is rising steadily and six others with steady sales performance. Growth suburbs include Belmont North, Edgeworth, Macquarie Hills, Toronto and Warners Bay.
Nearby LGAs (including the municipalities of Port Stephens, Newcastle, Maitland, Cessnock, Singleton and Muswellbrook) all have busy sales activity.
Jointly the Newcastle/Hunter region has 19 growth markets (up from 17 three months ago).
To illustrate what some of these markets look like, dwelling sales in Cessnock have been 65, 67, 84, 90, 96 and 101 in the past six consecutive quarters. This kind of pattern inevitably delivers price growth – and the median house price for Cessnock has increased 13% in the past 12 months.
Hunter Valley locations like Muswellbrook and Singleton continue to improve after the previous downturn caused by over-development and a downturn in the coal industry.
Following the merger of the Wyong and Gosford LGAs to form the Central Coast council area, this municipality is now a significant market in Regional NSW.
It has four rising locations, but 24 with steady sales performance (many of them what we called “plateau” markets, where sales have levelled off a little below the peak), which indicates this market overall is strong but past its best.
On the south coast of NSW, both Batehaven and Tuross Head in the Eurobodalla LGA have growth markets.
Queanbeyan on the ACT border continues to excel as an affordable growth alternative to Canberra. Others to stand out as above-average growth markets in Regional NSW include Bathurst, Dubbo, Taree, Tuncurry and Gunnedah.
Tamworth, Orange, Goulburn, Ballina and Wagga Wagga all have solid markets with steady sales activity.
Areas which were among the Regional NSW growth stars previously, but have now levelled out with plateau markets, include locations close to Sydney which caught a ripple effect from the capital city boom: Wollongong, Blue Mountains and the lifestyle towns of Wingecarribee Shire (the Southern Highlands).
Other previous growth stars now past their peaks include Port Macquarie and Coffs Harbour.