Best suburbs to invest in Newcastle and the Central Coast in 2025

Looking to invest in the Newcastle real estate market, or researching the best suburbs on the Central Coast?

Here, we look at what is happening in these markets as well as expert tips for where to invest in these two locations.

Let’s start with an overview of how the Newcastle and Central Coast real estate markets performed in 2024.

What did the Newcastle and Central Coast real estate market look like in 2024?

The Newcastle and Central Coast property markets performed strongly in 2024, driven by population growth, increased demand, and improving infrastructure.

The Newcastle-Maitland region saw impressive annual property price growth of +5.0 per cent in 2024, according to CoreLogic’s Regional Market Update. This growth pushed the median property price in Newcastle to $836,519, while median rents rose by +7.4 per cent to $651 per week. Over the past five years, property values in the region have surged by 54.8 per cent, reflecting its long-term appeal. Sales volumes also climbed by +14.1 per cent year-on-year, further signalling strong buyer interest. 

Henry Single, director of Pivot Property, noted that Newcastle has become an increasingly viable alternative to Sydney for priced-out buyers. “The NorthConnex [tunnel] has made commuting from Newcastle much more viable,” he told savings.com.au, emphasizing the relative affordability of Newcastle compared to Sydney’s $1.2 million median dwelling price.

The Central Coast experienced similar momentum, with annual property price growth of +3.2 per cent, bringing the median property value to $936,313. Median rents surged by +10.2 per cent to $677 per week, while sales volumes grew by +13.1 per cent. 

The McGrath Report 2025 highlighted the region’s ongoing net migration trend, driven by its proximity to Sydney and appeal as a lifestyle destination. According to the report, the Central Coast has seen more people moving in than leaving since 2019, with this trend accelerating from 2021 onward.

Together, these regions have become increasingly attractive for both homebuyers and investors, offering relative affordability, strong rental returns, and lifestyle benefits within reach of Sydney.

Newcastle and Central Coast property market predictions and price forecasts 2025

The property markets in Newcastle and the Central Coast are set for steady growth in 2025, supported by ongoing population increases, improving infrastructure, and stabilising market conditions.

Newcastle is positioned as a city on the rise, with continued population growth expected to bolster its property market. According to savings.com.au, Newcastle recorded its largest population increase on record between June 2022 and June 2023, growing by 1.4 per cent. It remains the fastest-growing region in NSW outside the broader Hunter Valley. 

Propertyology’s 2025 Property Market Outlook predicts price growth of between 2 and 5 per cent in Newcastle, noting its relative affordability compared to Byron Bay, where the median house price is $1.6 million. Newcastle’s $920,000 median house price and the near completion of the East End urban renewal project position it as an attractive market for buyers. However, with 4.4 per cent of housing stock changing hands last year and supply volumes slightly below average, the market reflects a cautiously optimistic sentiment.

On the Central Coast, Propertyology forecasts price growth of 3 to 6 per cent in 2025. With a regional population of 353,000 and median house prices stabilised at $930,000, the area has regained momentum after a 5 per cent dip in 2023. Key centres like Gosford and Wyong, along with lifestyle-focused communities such as Woy Woy and Terrigal, continue to attract buyers with strong connections to Sydney. 

Herron Todd White’s Month in Review December 2024 highlighted that the Central Coast market is entering 2025 with stabilised conditions and is closely tied to macroeconomic factors, including inflation trends and the possibility of the first interest rate cut since 2020.

Both regions offer significant opportunities for buyers and investors alike, with Newcastle standing out for its urban renewal projects and affordability, while the Central Coast benefits from its lifestyle appeal and proximity to Sydney.

Best suburbs in Newcastle and the Central Coast to invest in property in 2025

If you’re looking for the best Central Coast suburbs to invest in, Aus Property Professionals has put together a list of some of the most attractive opportunities for the year ahead:

• Terrigal, NSW 2260: With a median house price of $1.6 million and annual growth of +5.8 per cent, Terrigal’s stunning coastal views and proximity to beaches like North Avoca make it an idyllic and sought-after location for investors looking for strong long-term appreciation.
• Avoca Beach, NSW 2251: Known for its premium market appeal, Avoca Beach commands a median house price of $1.54 million (+2.8 per cent annual growth), offering high-end coastal living and promising returns for investors focused on quality waterfront properties.
• Long Jetty, NSW 2261: Boasting an impressive +13.7 per cent annual growth in house prices and a median of $1.29 million, Long Jetty’s gentrification, prime location between Tuggerah Lake and the Pacific Ocean, and mix of heritage and modern homes make it a top choice for investors.
• Copacabana, NSW 2251: With a median house price of $1.91 million (+8.9 per cent annual growth), Copacabana’s scenic ocean views and lifestyle appeal offer consistent value and strong growth potential for high-end investment portfolios.
• Killarney Vale, NSW 2261: A more affordable option with a median house price of $900,000 (+8.4 per cent annual growth), Killarney Vale is ideal for first-time investors seeking long-term appreciation, driven by its proximity to gentrified areas like Long Jetty and its vibrant local amenities.

As to where to invest in Newcastle, the team at savings.com.au created a rundown of some of the region's top spots for 2025:

• Mayfield, NSW 2304: With a median house price of $885,000 and annual growth of +9.3 per cent, Mayfield’s gentrification, transport upgrades, and growing owner-occupier appeal make it an exciting investment prospect for 2025, with potential for double-digit growth according to local experts.
• Waratah, NSW 2298: Close to major employment hubs like the university, John Hunter Hospital, and the CBD, Waratah’s median house price of $890,000 (+12.2 per cent growth) offers relative affordability and strong rental demand from a diverse tenant pool, including students and young families.
• Merewether, NSW 2291: As one of Newcastle’s premium suburbs, Merewether boasts a median house price of $2.15 million and steady growth potential, with its proximity to the beach and appeal to Sydney buyers making it a prime target for high-end investors.
• Soldiers Point, NSW 2317: Achieving a remarkable +34 per cent growth in house prices in 2024 to a median of $1.34 million, Soldiers Point’s waterfront properties and popularity among holiday-home buyers and retirees position it as a star performer in the Port Stephens region.
• Fingal Bay, NSW 2315: Known for its stunning coastline and premium appeal, Fingal Bay’s median house price of $1.26 million may have dipped slightly in 2024, but its beauty and proximity to Port Stephens make it an attractive investment as demand in the region surges.