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Newcastle Property Market Outlook 2026 & Beyond | Propertybuyer

January 23, 2026 / Written by Terry Ryder

 

By Guest Blogger, Terry Ryder, founder, hotspotting.com.au

hotspotting.com.au and propertyU

 

The property market in Newcastle – and in nearby locations – enters 2026 with big momentum building.

I’ve just completed my quarterly analysis of sales activity trends for every suburb, town and city across Australia and the rising tide for the Newcastle and Hunter Region markets is one of the standout outcomes.

The Regional NSW market is generally rising, delivering the highest level of sales since the Covid boom in 2021 – and some of the individual locations are pumping strongly. They include the LGAs of Newcastle and neighbouring Lake Macquarie, as well as the wider Hunter Region.

Rising Sales Volumes Signal Strong Price Growth Ahead

I analyse sales volumes, quarter by quarter, because trends with buyer activity are a forward indicator of what will happen with prices in the near future.

In those terms, the City of Newcastle is rising sharply, with quarterly sales increasing from 687 to 746 to 880 in the past six months. Suburbs with rising markets (with median house prices) include Mayfield ($995,000), New Lambton ($1,200,000), Adamstown Heights ($1,180,000) and Wallsend ($830,000), while upmarket Merewether ($2,100,000) and the inner-city Newcastle unit market ($1,030,000) stand out for consistency.

The neighbouring Lake Macquarie LGA has also become busier recently; after several consecutive quarters with 600-650 sales, volumes rose to 750 in the latest quarter. Belmont ($1,000,000), Eleebana ($1,335,000), Wyee ($1,033,000) and Warners Bay ($1,085,000) all have rising markets, while Cameron Park ($930,000), Charlestown ($985,000) and Cooranbong ($947,000) have highly consistent sales.

The Hunter Region (the LGAs of Cessnock, Maitland, Singleton and Muswellbrook) has lifted sales from 904 to 920 to 1,119 in recent quarters. Rising suburbs include Cessnock, Heddon Greta, North Rothbury, Thornton, Rutherford, Ashtonfield, Gillieston Heights and Singleton – while East Maitland, Chisholm and Muswellbrook are notable for their consistency. Median house prices typically range from $500,000 to $750,000, though some suburbs are higher.

Also in the Newcastle region, the Port Stephens LGA is buoyant and quarterly sales have risen from 259 to 286 to 351, led by Nelson Bay, Medowie and Raymond Terrace.

All this points to a strong 2026 in terms of price performance. When buyer demand is rising so strongly, price growth is inevitable.

Why Lifestyle, Connectivity and Affordability Are Driving Sustained Growth

A further attraction for investors is that vacancies throughout the region are typically well below 1%.

The Newcastle and Hunter property markets are underpinned by a very strong and diverse economy, indeed the largest regional economy in the nation.

I highly rate infrastructure investment as a powerful generator of growth in residential property markets and this part of Australia is attracting investment totalling multiple billions of dollars – including the airport, the export port, road links, medical facilities and resources & energy developments.

The proposed fast rail link to Sydney, if and when it happens, will be a powerful additional force in the future.

The other big element attracting buyers to the Newcastle region is lifestyle. One of the big ongoing trends impacting Australian real estate is “the Exodus to Affordable Lifestyle”, with large numbers of big city residents moving to regional centres.

Typically refugees from the biggest cities don’t move very far when they make this transition, so Newcastle and the Hunter Region i a natural beneficiary of this trend.

The region offers wonderful beaches, a range of water environments, one of the nation’s leading wine districts and an iconic horse-breeding region.

All of this adds up to package gift-wrapped for growth – lifestyle and relative affordability, underpinned by a powerhouse economy, within easy striking distance of the nation’s biggest city.

And the five-year capital growth averages prove the point – Mayfield (11% per year), New Lambton (9%), Wallsend (11%), Belmont (10%), Eleebana (9%), Warners Bay (10%) and Cooranbong (11.5%) are examples.

When prices are growing 10-11% per year on average, property values are doubling in 6-7 years.

 

 

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