The results are in. Three of the four best performing property markets in Newcastle/Lake Macquarie are in the Lake Macquarie Local Government Area, according to the RP Data Suburb Score card for the 12 months to December 2014 – with each recording an increase of more than 30 per cent in their median house price over the previous 12 months.
Topping the list of top performing suburbs in the Hunter in equal first place are Coal Point and Wyee, both of whom recorded median price increases over the 12 months to December 2014 of 32.9% bringing their median house prices to $651,000 and $505,000 respectively.
But as their prices increase their gross rental yields are falling with Wyee the best of the top four at 4% whilst the gross rental yield for a property in Coal Point is now only 3.6%.
In third place was The Hill who recorded an increase in the median house price of 31.1% bringing the median for the suburb to more than a million dollars at $1,085,000 and making it one of only three suburbs in Newcastle whose median house price is now more than one million dollars. The Hill can also lay claim to one of the lowest gross rental yields in the Hunter at only 2.8%, beaten only by The Junction at 2.2% and Hamilton East at 2.5%.
Rounding out the top four and the only other suburb to record growth in its median house price of more than 30% in the 12 months is Kahibah. With growth of 30.7% bringing the median house price in Kahibah to $585,000 and its gross rental yield down to 3.8%.
And whilst Lake Macquarie lays claim to three of the best performing suburbs over the 12 months it is also home to the only two suburbs in Newcastle and Lake Macquarie who recorded falls in their median house price of more than 10%, with Wyee Point recording a fall of 13.1% and Morisset Park down 11.5%.
As property prices have risen in Newcastle and Lake Macquarie gross rental yields have fallen. 12 months ago there were 13 suburbs in the Newcastle and Lake Macquarie area that recorded gross rental yields of more than 6%.
Today there is only one, Bolton Point at a healthy 6.9%. Similarly, those suburbs that had gross rental yields greater than 5% have also fallen considerable, down from 62 suburbs to 38 so still plenty of options. A 5% gross rental yield when you can obtain a three or five year fixed interest rate that starts with a four is still not bad going when you consider that in Sydney investors are accepting gross rental yields on houses of between 3% and 4% and falling as house prices rise.
So whether you are looking to buy a new home or an investment property, Newcastle and Lake Macquarie property markets are worth considering.
Next week I will venture further afield and have a look at whats happened in the Port Stephens, Maitland, Singleton and Muswellbrook Local Government areas. In the meantime, if you are considering buying in Newcastle and want to be provided with some information on a few local suburbs please feel free to get in touch with Margaret Godfrey Mortgage Broker.
Note: The article is only looking a property within the Newcastle and Lake Macquarie Local Government Areas and it is based on the Core Logic RP Data Suburb Scorecard to December 2014.