The property market in Newcastle and Lake Macquarie continues to show resilience, with a steady increase in home values recorded in March 2025. According to CoreLogic’s Home Value Index (HVI) report, dwelling values in the region rose by 0.4% last month. This indicates a consistent, albeit mild, growth trajectory in the local real estate market.
Key Statistics from the March 2025 Report
- Dwelling Value Increase (March 2025): 0.4%
- Median Dwelling Value: $928,678
- House Value Increase (March 2025): 0.3%
- Median House Value: $963,008
- Unit Value Increase (March 2025): 0.9%
- Median Unit Value: $928,678
- Quarterly Dwelling Value Change: 1.5% (strongest since April 2024)
- Annual Dwelling Value Change: 4.0%
Insights from CoreLogic: (soon to be known as “Cotality”)
Tim Lawless, CoreLogic’s research director, noted the ongoing trend occurring in the Newcastle, Lake Macquarie and Hunter Valley regions, stating, “It is a consistent trend in Newcastle and Lake Macquarie. There was a slight dip in December, down 0.1 per cent, which was more than reversed the following month, but the trend, particularly the quarterly trend, is strong.”
He also highlighted the sustainability of the current property value growth pace: “To put it into context, this latest quarterly figure is a pretty mild pace of growth, and that is perhaps what we can expect going forward.2 We will see further growth in values but at a fairly steady trajectory that is much more sustainable than what we have seen over the last couple of years.”
Units Leading the Way
Interestingly, units recorded a more significant increase in value compared to houses in March. Unit values rose by 0.9%, reaching a median value of $928,678, while house values increased by 0.3% to a median of $963,008. This could be attributed to factors like affordability and changing buyer preferences.
National Context
The Newcastle and Lake Macquarie property market aligns with the broader national trend, where Australian home values also increased by 0.4% in March. This national recovery is partly attributed to improved sentiment following the recent interest rate cut in February, which has slightly enhanced borrowing capacity.
Future Outlook for the Property Market
While further interest rate cuts are anticipated throughout the year, the pace is expected to be gradual. This suggests that the steady and sustainable growth observed in Newcastle and Lake Macquarie is likely to continue. As Lawless points out, “Overall, we should expect the rates to come down but not very quickly, which will help to contain price growth.”
What This Means for Buyers
The current market conditions present a balanced scenario for property buyers in the Newcastle and Lake Macquarie regions. While prices are still on the rise, the rate of growth is moderate, offering a more stable environment for making purchasing decisions. The increase in unit values also provides more options for buyers looking for affordable entry points into the property market.
If you’re looking to buy a home or investment in Newcastle or Lake Macquarie, understanding these trends is crucial. At Open Doors Buyers Agent, we stay on top of the latest market data to help you navigate the market and find the best property at the right price.