As expected, the market wound down in December, a seasonally slow time of year, with a decline in sold volume, new listings and active listings across all four local LGAs. The Newcastle LGA reported higher new listings than in previous years, with 156 in December (up from 119 in Dec 2023 and 137 in Dec 2022).
CoreLogic reported the first downturn in national property prices in 22 months, with December slipping into the red at -0.1%. The downturn was largely driven by Sydney and Melbourne markets “which account for roughly 40% of Australian housing stock, and 50% of Australian housing value.”* Regional NSW fared better with 0.03% growth. This follows slowing growth in national home values since July 2024. Market factors include prolonged high interest rates, cost of living affordability, reduced borrowing capacity, and a seasonally slow time of year. Over the year, national growth came in at 4.9%, with combined regional growth higher at 6%. The top performers were the mid-sized capitals, Perth, Adelaide and Brisbane, which experienced a surge in growth in 2024.
Median sale prices declined in December across all four local LGAs. To add perspective, the Newcastle and Lake Macquarie LGAs’ median sale prices are still higher than their September figures. Affordability constraints supressing buyer demand, combined with rising supply, has softened the market. Great news for those already in a position to buy.
Two properties sold by Green St in December defied market trends. 22 Elsworth Parade, Merewether Heights sold in only 6 days on Christmas Eve, and 4/26 Janet Street, Merewether sold for $800,000 with offer and acceptance in 7 days.
REA lists Adamstown Heights and Mayfield in their Hot 100 suburbs to watch in 2025, based on predicted short to medium-term price growth.
Adamstown Heights was nominated for Demographic Change, citing the suburb’s strong family appeal, access to quality schools, and proximity to affluent suburbs, Merewether and Merewether Heights. A leafy suburb neighbouring Glenrock National Reserve, Adamstown Heights features the popular Fernleigh Track and borders Westfield Kotara shopping and dining precinct. The median price is $1,162,500, up 16.0% in the last year with 62 properties sold, according to realestate.com.au’s suburb profile.
Mayfield was nominated for Location, Population Growth and Demographic Change, citing significant gentrification (first home buyers, young professionals and families), and the suburb’s affordability considering its closeness to the CBD, harbour, beaches, and major transport links. Known for its trendy mix of the old and the new, Mayfield has seen a major expansion of its shopping precincts to support its growing population. The median house price is $885,500, up 9.2% in the past year (140 sold) and $735,000 for units, up 22.6% (22 sold).
The near-by suburbs of Lambton, Kotara, Newcastle, and Merewether are also held in high regard by Hot 100 experts. Over the last year, home values in these suburbs grew: 11.1% for houses and 16.5% for units in Lambton, 2.5% for houses in Kotara, -2.6% for units in Newcastle (unavailable for houses), and 0.5% for houses and 1.2% for units in Merewether.
Sources:
Local data sourced from REA Group (who own realestate.com.au)
CoreLogic articles: 01 Jan 2025, *08 Jan 2025 & 02 Dec 2024