Gateshead is in the bottom 40% in NSW when comparing median price capital growth over the last year. Gateshead gave property investors a disappointing capital gain figure when compared to the rest of the state, with -8.15%.
The five-year average increase in median property values for Gateshead,2290 has given property investors a potential capital gain of 35.20% across each of those five years.
When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in Gateshead, 2290. Typically our figures indicate that -7.97% is being offered, which puts this NSW suburb at 921th most discounted overall in Australia.
Using the current median advertised rental of $375 and the average annual increase in value of a median property of 6.04%, investors should hope to achieve an overall return of 4.62%
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The suburb has been racking up around 10% average annual growth over the past 10 years; however, growth over the past 3-5 years has been well below that. There are now signs that the property market is on a rebound.
Gateshead is one of the few suburbs in the Newcastle region where you can count on finding a house for under $300,000. It is just 6km to the beaches at legendary surf spot Redhead and a quick commute into Newcastle. That is moving the area up on the lists of first time home buyers especially, says local agent Damon Ellis.
“You’re seeing a lot more activity there recently,” he says. “For example, I’ve got a couple who are looking at buying in Gateshead at the moment and they’re relocating from Queensland and their main things are affordability and being close to the beach. Redhead has recently become one of his favourite surfing spots.”
Ellis says investors are also starting to take notice of Gateshead, which boasts strong rental yields of above 6% and a tightening rental market. The expanding Lake Macquarie Private Hospital means investors can count on a good pool of medical professionals looking for rental housing.
Best street(s): Goundry Street: A broad street with good access and several charming brick homes.