Sydney has been the real estate hotspot in New South Wales (NSW) for almost half a decade - but investors are increasingly turning their attentions to a regional area some 160km away.
The harbour city of Newcastle has a growing median house price that currently stands at $530,000 - making it more affordable than Sydney's median of $1.07 million and therefore the subject of increasing interest from investors, Domain reports.
Regional cities throughout NSW have collectively recorded a median house price of $440,000, so investors are actively looking for cheaper alternatives to Sydney that still offer promising growth prospects.
Statistics indicate that strong growth forecast for Newcastle is already underway, with the Domain Regional House Price Report indicating that house prices in the city increased by 9.3 per cent in the year to September and 4.2 per cent over the previous quarter.
Further property price growth in Newcastle is expected to be underpinned by infrastructure developments, including a new light rail and significant swathes of rezoning across the city.
Adamstown is another area that, like Newcastle, could outperform Sydney's suburbs, as real estate in the NSW capital is beyond the reach of more and more buyers, creating more of an appetite for regional properties among investors.
Indeed, a poll from State Custodians showed that some 72 per cent of Victorian investors are still set on buying in Melbourne, while almost half of NSW investors (49 per cent) are looking beyond Sydney for new areas in which to invest their money.
State Custodians general manager Joanna Pretty said: "There are a lot of people who have seen property prices are insanely expensive [in Sydney] and so are looking at the more affordable areas."
Looking outside of Sydney is also a lifestyle decision for many, with people buying in areas where they would like to retire and looking to property as an investment in the meantime.
