Land values in the Newcastle local government area
Hunter region
General overview
There was a moderate increase in land values in the Newcastle local government area between 2017 and 2018. The increase in land values was broadly consistent across all market segments with the exception of commercial zoned lands which continued to experience strong increases in land values.
The moderate upward trend of land values follows a sustained period of strong demand in the district over the past several years which have been supported by a number of factors. These include the significant infrastructure projects in the Newcastle CBD combined with other large scale private and public sector investments, including residential developments which are proposed to add a further 2,000 units to the CBD supply. Newcastle University completed a new central business district campus and are proposing student accommodation within the Newcastle Honeysuckle precinct.
The Newcastle central business district in particular, has attracted demand from investors and developers as the long term Newcastle Revitalisation Strategy comes to fruition and resulted in continued strong increases in some inner city area land values this year.
Land value trends
| Property zone | 01 Jul 2017 | 01 Jul 2018 | % change |
|---|---|---|---|
| Residential | $25,906,712,180 | $27,652,595,690 | 6.7% |
| Commercial | $1,207,395,140 | $1,336,614,570 | 10.7% |
| Industrial | $858,418,936 | $926,043,016 | 7.9% |
| Other | $794,043,977 | $791,083,866 | -0.4% |
| Total | $28,766,570,233 | $30,706,337,142 | 6.7% |
Number of properties by zone
Total number of properties: 58,299
Residential land values
Residential overview
Residential land values experienced a moderate increase overall after a sustained period of strong local confidence and buyer activity in the continuing low interest rate environment and strong local construction activity, particularly in the Newcastle central business area.
However, there have been indications of a moderation in demand with sales activity generally decreasing.
Land values were steady in areas such as Maryland, New Lambton, North Lambton, Hamilton and Merewether where an easing of demand has become more evident after these suburbs had recorded strong value increases over several previous years.
Median land values and sale prices
The above chart shows movement in the property market and land values over a five year period. In areas where there are a low number of sales, median sale prices may not accurately reflect the property market. Land values may not always move directly in line with sale prices due to the influence of other factors, such as building costs.
Typical residential land values
| Address | 01 Jul 2017 | 01 Jul 2018 | % change |
|---|---|---|---|
| Brunker Rd, Adamstown | $2,100 | $2,100 | 0.0% |
| Brunker Rd, Adamstown | $425,000 | $440,000 | 3.5% |
| Date St, Adamstown | $580,000 | $615,000 | 6.0% |
| Gosford Rd, Adamstown | $430,000 | $470,000 | 9.3% |
| Ashbury St, Adamstown Heights | $449,000 | $507,000 | 12.9% |
| Brooks St, Bar Beach | $1,280,000 | $1,470,000 | 14.8% |
| Kendall St, Beresfield | $190,000 | $215,000 | 13.2% |
| Naughton Ave, Birmingham Gardens | $247,000 | $262,000 | 6.1% |
| Phoenix Rd, Black Hill | $651,000 | $651,000 | 0.0% |
| Belford St, Broadmeadow | $400,000 | $440,000 | 10.0% |
| Corlette St, Cooks Hill | $685,000 | $750,000 | 9.5% |
| Darby St, Cooks Hill | $2,000,000 | $2,200,000 | 10.0% |
| Union St, Cooks Hill | $950,000 | $1,050,000 | 10.5% |
| Aries Way, Elermore Vale | $277,000 | $296,000 | 6.9% |
| Cambronne Pde, Elermore Vale | $323,000 | $342,000 | 5.9% |
| Lake Rd, Elermore Vale | $796,000 | $825,000 | 3.6% |
| Goddard St, Fletcher | $283,000 | $297,000 | 5.0% |
| Blackall St, Hamilton | $410,000 | $430,000 | 4.9% |
| Veda St, Hamilton | $550,000 | $550,000 | 0.0% |
| Hamilton St, Hamilton North | $425,000 | $455,000 | 7.1% |
| Alexander St, Hamilton South | $882,000 | $988,000 | 12.0% |
| Hibberd St, Hamilton South | $660,000 | $706,000 | 7.0% |
| Rudge Way, Hamilton South | $110,000 | $121,000 | 10.0% |
| Albert St, Islington | $700,000 | $730,000 | 4.3% |
| Maitland Rd, Islington | $360,000 | $400,000 | 11.1% |
| Phoebe St, Islington | $430,000 | $450,000 | 4.7% |
| Goodwin St, Jesmond | $310,000 | $335,000 | 8.1% |
| Ralph St, Jesmond | $1,180,000 | $1,250,000 | 5.9% |
| Shereline Ave, Jesmond | $295,000 | $327,000 | 10.9% |
| Durham Rd, Lambton | $480,000 | $509,000 | 6.0% |
| Jerrawa Cl, Lambton | $486,000 | $486,000 | 0.0% |
| Lenaghans Dr, Lenaghan | $887,000 | $887,000 | 0.0% |
| Archer Cres, Maryland | $433,000 | $433,000 | 0.0% |
| Boundary Rd, Maryland | $283,000 | $283,000 | 0.0% |
| Prospero St, Maryland | $266,000 | $266,000 | 0.0% |
| Ackeron St, Mayfield | $340,000 | $375,000 | 10.3% |
| Dora St, Mayfield | $335,000 | $360,000 | 7.5% |
| Ingall St, Mayfield | $319,000 | $370,000 | 16.0% |
| Maitland Rd, Mayfield | $380,000 | $405,000 | 6.6% |
| Roe St, Mayfield | $350,000 | $380,000 | 8.6% |
| Section St, Mayfield | $1,100,000 | $1,200,000 | 9.1% |
| Shelley Cl, Mayfield | $310,000 | $350,000 | 12.9% |
| Gregson Ave, Mayfield West | $291,000 | $311,000 | 6.9% |
| Maitland Rd, Mayfield West | $253,000 | $271,000 | 7.1% |
| Hickson St, Merewether | $2,110,000 | $2,110,000 | 0.0% |
| Margaret St, Merewether | $860,000 | $950,000 | 10.5% |
| Mitchell St, Merewether | $1,050,000 | $1,070,000 | 1.9% |
| Pell St, Merewether | $1,500,000 | $1,560,000 | 4.0% |
| The Quarter Deck , Merewether Heights | $715,000 | $715,000 | 0.0% |
| Woodford St, Minmi | $238,000 | $238,000 | 0.0% |
| Florida Ave, New Lambton | $532,000 | $532,000 | 0.0% |
| Hitchcock Ave, New Lambton | $449,000 | $449,000 | 0.0% |
| Knight St, New Lambton | $488,000 | $508,000 | 4.1% |
| Lambton Rd, New Lambton | $810,000 | $875,000 | 8.0% |
| Mackie Ave, New Lambton | $450,000 | $485,000 | 7.8% |
| Noela Ave, New Lambton | $508,000 | $508,000 | 0.0% |
| Orchardtown Rd, New Lambton | $407,000 | $444,000 | 9.1% |
| Regent St, New Lambton | $6,000 | $6,000 | 0.0% |
| St James Rd, New Lambton | $1,050,000 | $1,100,000 | 4.8% |
| Sturdee St, New Lambton | $438,000 | $456,000 | 4.1% |
| Beverley Cres, New Lambton Heights | $429,000 | $429,000 | 0.0% |
| King St, Newcastle | $820,000 | $950,000 | 15.9% |
| Scott St, Newcastle East | $860,000 | $1,000,000 | 16.3% |
| Hunter St, Newcastle West | $784,000 | $913,000 | 16.5% |
| Acacia Ave, North Lambton | $359,000 | $359,000 | 0.0% |
| Newcastle Rd, North Lambton | $244,000 | $276,000 | 13.1% |
| Seventh St, North Lambton | $355,000 | $380,000 | 7.0% |
| Bardia Rd, Shortland | $230,000 | $265,000 | 15.2% |
| Sandgate Rd, Shortland | $231,000 | $254,000 | 10.0% |
| Maitland St, Stockton | $430,000 | $460,000 | 7.0% |
| Anderson Dr, Tarro | $208,000 | $208,000 | 0.0% |
| Devon St, Wallsend | $291,000 | $320,000 | 10.0% |
| Douglas St, Wallsend | $267,000 | $283,000 | 6.0% |
| Lumsden Lane, Wallsend | $265,000 | $285,000 | 7.6% |
| Martindale St, Wallsend | $294,000 | $309,000 | 5.1% |
| Newcastle Rd, Wallsend | $235,000 | $244,000 | 3.8% |
| Angophora Dr, Warabrook | $317,000 | $336,000 | 6.0% |
| Bridge St, Waratah | $361,000 | $412,000 | 14.1% |
| Schroder Ave, Waratah | $336,000 | $363,000 | 8.0% |
| King St, Waratah West | $282,000 | $296,000 | 5.0% |
| Lorna St, Waratah West | $276,000 | $306,000 | 10.9% |
| Fleming St, Wickham | $434,000 | $460,000 | 6.0% |
| Fleming St, Wickham | $464,000 | $464,000 | 0.0% |
Commercial land values
Commercial overview
Commercial land values increased strongly which was supported by buoyant investor and developer confidence in the Newcastle property market. Properties located in the Newcastle central business area or in more popular commercial locations such as The Junction, Hamilton and Kotara experienced the strongest demand.
Projects related to the Newcastle Revitalisation Strategy including the circa $420 million Light Rail Project have had a transformative effect on the demographic fundamentals of the central business area. There have been a substantial number of high density residential developments recently constructed, with more approved, and market demand has been strong for the product. This in turn has increased demand for commercial property by both developers and investors seeking returns and translated to increase land values.
Typical commercial land values
| Address | 01 Jul 2017 | 01 Jul 2018 | % change |
|---|---|---|---|
| Victoria St, Adamstown | $425,000 | $460,000 | 8.2% |
| Milton St, Beresfield | $180,000 | $190,000 | 5.6% |
| Graham Rd, Broadmeadow | $365,000 | $400,000 | 9.6% |
| Lambton Rd, Broadmeadow | $621,000 | $683,000 | 10.0% |
| Young St, Carrington | $460,000 | $485,000 | 5.4% |
| Churnwood Dr, Fletcher | $265,000 | $280,000 | 5.7% |
| Tibin Dr, Fletcher | $295,000 | $310,000 | 5.1% |
| Cleary St, Hamilton | $490,000 | $545,000 | 11.2% |
| Lawson St, Hamilton South | $385,000 | $420,000 | 9.1% |
| Blue Gum Rd, Jesmond | $420,000 | $455,000 | 8.3% |
| Joslin St, Kotara | $270,000 | $280,000 | 3.7% |
| Park Ave, Kotara | $1,050,000 | $1,150,000 | 9.5% |
| Searle St, Kotara | $807,000 | $928,000 | 15.0% |
| Elder St, Lambton | $490,000 | $530,000 | 8.2% |
| Maitland Rd, Mayfield | $310,000 | $330,000 | 6.5% |
| Newcastle St, Mayfield | $4,750,000 | $5,000,000 | 5.3% |
| Llewellyn St, Merewether | $850,000 | $935,000 | 10.0% |
| Alma Rd, New Lambton | $490,000 | $540,000 | 10.2% |
| Orchardtown Rd, New Lambton | $392,000 | $415,000 | 5.9% |
| Hunter St, Newcastle West | $1,280,000 | $1,470,000 | 14.8% |
| Mawson St, Shortland | $245,000 | $260,000 | 6.1% |
| Mitchell St, Stockton | $350,000 | $375,000 | 7.1% |
| Corlette St, The Junction | $650,000 | $725,000 | 11.5% |
| Elizabeth St, Tighes Hill | $390,000 | $450,000 | 15.4% |
| Murnin St, Wallsend | $223,000 | $255,000 | 14.4% |
| Angophora Dr, Warabrook | $1,100,000 | $1,150,000 | 4.6% |
| Station St, Waratah | $340,000 | $390,000 | 14.7% |
Industrial land values
Industrial overview
Industrial land values increased moderately in the Newcastle area. While the non-mining economy in Newcastle has been supported by strong construction activity mostly occurring within Newcastle central business area.
Marginal industrial land located on the Newcastle fringe areas of Warabrook and Hexham continue to experience limited demand.
Typical industrial land values
| Address | 01 Jul 2017 | 01 Jul 2018 | % change |
|---|---|---|---|
| Bailey St, Adamstown | $493,000 | $513,000 | 4.1% |
| Kullara Cl, Beresfield | $550,000 | $611,000 | 11.1% |
| Denison St, Carrington | $315,000 | $347,000 | 10.2% |
| Shelley St, Georgetown | $356,000 | $413,000 | 16.0% |
| Old Maitland Rd, Hexham | $185,000 | $192,000 | 3.8% |
| Creek Rd, Maryland | $2,170,000 | $2,170,000 | 0.0% |
| George St, Mayfield East | $518,000 | $539,000 | 4.1% |
| Laurio Pl, Mayfield West | $692,000 | $799,000 | 15.5% |
| Friesian Cl, Sandgate | $578,000 | $636,000 | 10.0% |
| Mangrove Rd, Sandgate | $219,000 | $241,000 | 10.1% |
| Newcastle Rd, Wallsend | $427,000 | $453,000 | 6.1% |
| Callistemon Cl, Warabrook | $505,000 | $525,000 | 4.0% |
Added value of improvement tables
The added value of improvement tables show dollar values per square metre for the added value of improvements for the main residential property types in a local government area. It is the value the improvements add to the value of the land as demonstrated by the analysis of property sales.