3 Reasons Property Developers Should Be Looking At The Newcastle Hunter Region
Property Development is not for the faint-hearted. Developers face a myriad of challenges from the very start. Beginning with site selection, product offering, planning and approval processes through to financing that is aligned with project feasibility.
During my 30 odd years in the Financial Industry I have shared in the joys and frustrations that developers are faced with when negotiating finance for projects.
Property Development in Newcastle, Hunter Valley and Lake Macquarie
Living in Newcastle this past 22 years I have witnessed, and been a part of the changing landscape that is Newcastle, Hunter Valley and the Lake Macquarie region. The investment in change and the redevelopment of this region has been significant.
As traditional funding for development tightens across the board and feasible sites become less available in major metro areas, there’s plenty of reasons why property developers should be looking closely at this growing region as an alternative.
1. The Hunter is NSW’s Fastest Growing Region
This is unlikely to change any time soon, with the new expressway now in operation. Evidence of this is clear with major investment in the region growing an example being the $400m expansion of The Vintage in Rothbury.
2. The downturn in the Coal Industry brings opportunity
A perceived lack of confidence in the property market in this area due to the downturn in the coal industry may mean that pricing could soften in certain areas making some development sites more affordable. The time to capitalise on this is limited as the region has largely recovered from mining-related slowdowns and company closures of the past decade is now in “reasonable shape” according to BIS Shrapnel
3. Sydney buyers are now looking to the Central Coast and Newcastle to get more bang for buck.
BIS Shrapnel forecasts Newcastle’s growth over the three years to 2017-18 at 15 per cent – compared to Sydney’s two per cent.
Further evidence of the revitalization and change in these areas is evident.
Expanding Industrial Park Development in Newcastle, Hunter Region
We’ve seen the development of new and expanding industrial parks including, but not limited to:
- Warners Bay
Property Development Activity in Newcastle
The continual property redevelopment taking shape within the Newcastle West /CBD precinct through to the evolving redevelopment of the Newcastle Harbor Foreshore via Honeysuckle redevelopment initiative makes Newcastle a world class lifestyle hub. These changes have provided quality apartment living within a mixed hospitality environment and new commercial office development. Not to mention the investment and expansion with the redevelopment of Charlestown Square, Westfields Kotara, Stockland Greenhills and Glendale.
In addition the area has undergone numerous residential land subdivisions that have appeared over the past 20 years (too many to name) catering for the many new families that call this region home.
Significant Infrastructure is Supporting Newcastle’s Outlook for Property Development
Coupled with the infrastructure investment providing light rail services within the CBD, Airport expansion and redevelopment, new private hospital development and expansion, University expanding developments adding to the changing economic and demographic changes we have all experienced especially this past 20 years following closure in 1999 of BHP.
It is exciting times now working with Development Finance Partners given the risk appetite and policies within our traditional Lenders has tightened we are still providing solutions to developers to allow their projects to progress and or commence. However, developers not familiar with the region would be advised to partner with a local expert with a deep understanding of the local environment and networks.
About the Author
Graeme Boyd is a Newcastle-based experienced Property Development Finance specialist with Development Finance Partners.
Could your next project benefit from some expert development finance? Get in touch.
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