Why you should consider investing in property in 2025
Last month, property analyst Hotspotting announced the data from its Summer 2024 Price Predictor Index, which assessed the suburbs with the steadiest conditions for long-term capital growth.
NSW saw ten suburbs on the list, and our very own Charlestown in Lake Macquarie was up there with Lithgow and Springwood in the Blue Mountains as a place to invest in. With this in mind, here’s why we think property should still be considered in the investor mix.
Economic recovery and interest rates
In its 2024 report, the Reserve Bank of Australia (RBA) indicated a cautious optimism regarding economic growth, with GDP projected to rise by approximately 3 % annually through 2025. This growth is anticipated to foster consumer confidence, thereby stimulating demand in the housing market.
ABS data shows that the Consumer Price Index (CPI) rose 0.2 % in the December 2024 quarter and 2.4 % over the twelve months, well down from 2.8 % in the September quarter and 3.8 % in the June quarter.
“The annual figure is the lowest since March 2021 and below market expectations. It is now well within the RBA’s target band of 2–3 %,” said Real Estate Institute of Australia (REIA) President, Ms Leanne Pilkington.
All this is pointing to a drop in the interest rate later this month.
Shifts in buyer preferences
Another trend shaping the Newcastle and Lake Macquarie property market is the evolving preferences of buyers. As remote work becomes a more permanent fixture for many, Corelogic’s 2024 Housing Trends report indicated a notable shift towards regional areas.
This trend is expected to continue into 2025, with buyers increasingly seeking lifestyle-oriented properties outside the major cities. And our region definitely offers a lot more in terms of affordability and lifestyle than Sydney.
Infrastructure development
As well as an increase in people working from home wanting to live in a more desirable and affordable region, infrastructure development is attracting more people to the region. The several projects aimed at enhancing connectivity and accessibility throughout the region include the expansion of the light rail network and upgrades to the Newcastle Airport.
Investors can anticipate that these improvements will make our region more appealing to both residents and businesses – and they are going to need somewhere to live!
With potential gentrification, urban renewal, infrastructure improvement and the consequent demographic shifts, some areas may become a more desirable area to live; for investors looking for a big capital gain, it may pay to get into these suburbs now.
Rental market dynamics
Despite CoreLogic’s end of year report revealing the softer rental growth rates, rent values in Australia remained high in 2024. Annual growth in rent values slowed to 5.3 % in the year to November, down from 8.1% in the year prior and a high of 9.6 % in the year to September 2022.
For our region, as more people transition to urban living and our international students return, demand for rental properties may surge.
In our Summer 2025 report for those thinking of purchasing a property as an investment, we’ve also included the Weekly Rent, and Gross Rental Yield in for several suburbs. That way, you can start to research potential areas.
Download our report here.
When you’ve found your property, come and talk to us! You need a Property Management Agent to ensure your property isn’t sitting empty for an extended period of time, and that you’re getting an income according to the market value.
We continue to outperform other property management agencies in the area; comparing our data to Real Estate Institute of NSW (REI NSE), we consistently quickly find quality tenants, and our vacancy rates are lower than average:
Now is the perfect time to start setting your property goals as we look ahead to a year of expected shifts in the market and a potential rate cut.
We have a strong Property Management team headed up by award-winning Kellie Andriessen. She constantly goes above and beyond, and delivers an amazing service – so much so she was awarded the Tim Anderson OAM Property Manager of the Year the REINSW 2024 Awards for Excellence. This prestigious award celebrates exceptional professionals demonstrating excellence, professionalism and dedication to their clients and communities.
Kellie has been with us for 35 years, and as an investor herself, she knows how important it is for investors to have peace of mind that their property is in good hands.
Whether it’s managing your investment property, or selling your home, with nearly 50 years in real estate and property management, our experienced and passionate team is constantly looking for new and innovative ways to ensure you get the best outcomes from your property.
This is why we are one of Newcastle’s longest established real estate agencies, so give us a call on
02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.