We’re heading into the New Year with plans already in place for a great range of events here in the Hunter and hoping to extend that to an event on the Central Coast later in the year. Our first event, Hunter/Central Coast Outlook, was held last week with great success and you can read more about that in our newsletter.
Over the Christmas break, The Hon. Catherine Cusack, was appointed as Parliamentary Secretary for the Hunter. This is something the Property Council raised directly with Government a number of times over the last 12 months so we certainly welcome this announcement and look forward to working with her to push for change with those issues that are important to our industry and region. The Property Council works hard across its advocacy agenda and has seen the positive results that can occur so we will ensure this progress continues.
The latest ANZ/Property Council Survey has shown NSW property industry confidence is on the rise and we dive into that in a little more detail in our newsletter also, with small changes also across the Office Market Report results.
We love to share stories of our new and existing members so please reach out and let us help spread the word about the positive work you are doing across your organisations.
positive market outlook for newcastle
The New Year has brought new confidence in the residential market across the state and Newcastle is feeling a similar optimism.
The latest ANZ/Property Council Survey has shown NSW property industry confidence has improved with a more positive outlook due to a strengthening residential market and better growth expectations.
Increased stability in conditions and greater access to finance has given a positive boost to the outlook with lowering of interest rates improving confidence in the residential and commercial sectors.
Access to credit is not what it has been in past years but it is certainly easing and with interest rate cuts in 2019, we’ll be looking to the Reserve Bank of Australia for a further cut in February and potentially later in the year to support economic growth. Firms are also significantly more positive about the construction outlook again due to improved access to finance for developers and households.
While confidence in the broader economic outlook remains relatively low, we are slowly seeing more positive signs. We shouldn’t forget that overall housing approvals and construction forecasts remain slow across the state so government’s commitment to planning reform will play an important role in this regard.
It’s fair to say we are experiencing improved confidence locally, with the residential property market in Newcastle remaining quite stable. Apartment sales have remained steady and while demand might not be what it was 12 months ago, we are still seeing strong interest in quality products in sought after locations. There is also strong demand in our residential market with family homes in demand for young couples and families.
In regards to the office market, The Property Council of Australia’s latest Office Market Report shows that Newcastle’s office market is strong with an overall vacancy rate only marginally decreasing to 7.2 percent.
The drop-in vacancy was due to positive demand and withdrawals indicating Newcastle is a strong, emerging regional office market.
Newcastle has a strong office market with a growing population and local economic growth. Over the period measured, 11,900sqm of space was added indicating there is still strong supply.
More specifically, A grade office space recorded a vacancy decrease which demonstrates a healthy local market and positive demand for quality space.
great vision for hunter and central coast
We kicked off a busy year with our first event last week being the Hunter/Central Coast Outlook event. Our speaker and panel members provided their insights into the potential for our regions, the opportunities that this year brings and how we might overcome the challenges.
Our regions continue to show good growth and great headway in terms of urban renewal so it is not surprising that we should be expecting a positive year ahead.