New research has revealed that Waratah on the outskirts of the Newcastle CBD has been forecasted as one of the top 10 suburbs around the nation for median house price growth over the next three years.
The analysis by SuburbGrowth.com.au — part of the Select Residential Property Research Group (SRP) — identified the top 10 suburbs within major markets. Waratah appeared as number eight on the list.
SRP Director of Research Jeremy Sheppard said the research identified the suburbs with sound market fundamentals, including the economic principals of demand and supply that apply upward housing price pressure.
“The analysis uses 17 market variables to help us determine the locations with the best chance of superior price growth over the next three years,” Mr Sheppard said.
According to realestate.com, Waratah has already seen seven property sales in October so far.
Agent Brooke Luliano from First National The Junction said that the suburb was a great investment area.
“Properties here don’t last long here because of the location, which is ten minutes to everything,” she said.
“The Newcastle property market has really picked up recently due to interest rate changes, and Waratah is a good little pocket for first home buyers, as well as investors, due to the five to ten year growth.”
Brooke and Mathew Luliano recently sold a cute Waratah cottage for $455,000 to some first home buyers who were renting a property through their office.
“The buyers loved the character of the cottage — it was neat and tidy and presented well. These type of properties go really fast,” Ms Luliano said.
Based on Waratah’s AVM median house price of $494,000, SRP forecasts a three year growth percentage of 27.4 and a dollar change amount of $135,368.
The Automated Valuation Model median is the middle figure for the valuations of almost all properties in the suburb based on sales, but factors in properties that haven’t sold recently.
“One of the main reasons why house prices are forecast to grow is an imbalance of demand to supply,” Mr Sheppard said.
“The thing is, even if prices end up only climbing by half as much as predicted, such is the nature of forecasting, it’s still a great return on investment over a short period of time.”
Waratah is a northwestern residential suburb just 15 minutes from Newcastle’s central business district and bounded on the north by the Main North railway line and home to a major acute hospital, the Calvary Mater.