NEWCASTLE will be a hot spot for property investors over the next year because of low prices, solid growth and major economic activity, a report reveals.
The Ryder Report, compiled by researcher, author and creator of the investor website www.hotspotting.com.au Terry Ryder, has listed Newcastle as NSW's only hot spot and among seven around the country.
Much of Newcastle's predicted growth lay in $3 billion worth of major projects planned for the region, made up of 186 construction projects with an average value of $15 million, the report said.
Notable projects include the $1.1 billion Mangoola coalmine development, the $320 million expansion of the Mount Arthur coalmine and the Queensland Hunter Gas Pipeline project.
Mr Ryder said Newcastle's 10-year residential growth was in line with national trends, in many instances outperforming Sydney.
He said 10 of 35 Newcastle suburbs surveyed had unprecedented growth of up to 14 per cent, the highest achiever being Mayfield East.
He said a slight slip in house prices over the past year to June, at an average of 3 per cent to 4 per cent, had kept housing affordable.
Real Estate Institute of NSW vice-president and Hunter chairman Wayne Stewart was not surprised by the report's findings, saying he believed that Newcastle would be a national hot spot for more years to come.
"I personally think that Newcastle is one of the country's three hot spots, with predicted growth of 25 per cent over the next two to three years," he said.
"I think we're going to see enormous growth and a shortage of housing will only help to push prices up.
"I believe Newcastle and the Hunter Region is one of the best places in the country to invest, despite the fact that it's a very liveable city."
Mr Stewart said confidence in the area, improved infrastructure, liveability and jobs growth helped to contribute to the region's growing population.