As Iris Capital fast-track the release of Fabric House in stage one of the East End redevelopment and Thirdi Group prepare to unveil its next project, experts have rated Newcastle among Australia’s top five cities to invest in an apartment.
In a Fairfax Media article released this week, BIS Oxford Economics managing director, Robert Mellor, Domain chief data scientist, Dr Nicola Powell, and AllenWargent property buyers co-founder, Peter Wargent identified their current investment hot spots.
Powell described Newcastle as a promising target saying, “it’s transitioning from a regional city into something much bigger”.
“The foreshore and CBD has been rejuvenated, areas have been rezoned and the university is growing,” Dr Powell said.
“From an investor perspective, you have jobs and an increased student intake, which means greater demand for rental accommodation.”
It was a sentiment echoed by Dane Crawford, Colliers International director, who has seen “unprecedented” apartment sales since the first stage of the East End was unveiled by Sydney-based developer Iris Capital.
“We’re top five now but as more and more people find us, I think we’ll got to top three and then, all of a sudden, we’ll be number one,” Mr Crawford said. “I have no doubt we’ll become the best place to invest in Australia.”
Two buildings in the East End development – Washington House and a building on the corner of King and Perkins streets – went on sale on September 16.
“On the first weekend alone we sold a lot of the stock and subsequently we’ve fast-tracked the final release in stage one,” Mr Crawford said. “That speaks volumes because those first two buildings had 155 apartments in there.”
Fabric House will feature 57 apartments and will hit the market next month.
Meanwhile, Luke Berry, director of sales and marketing for Thirdi Group, made a similar prediction, saying Newcastle offered “one of the more secure investment destinations for people”.
The Sydney-based company are behind several apartment developments in Newcastle, including the WestEnd.
He said the WestEnd, currently under construction, had sold out and Thirdi Group were set to unveil another 125-apartment project for the city in November.
“Then hopefully we will be delivering another 160 apartments in April-May next year and then hopefully another 150 in October-November next year,” he said.