Exploring the Hunter Valley real estate market
One of the oldest and best-known wine regions in Australia, Hunter Valley is a stunning location where the majority of its population lives just 25km from the coast. It's not just a wine region; it's also well-known for its historical architecture and mouthwatering food.
The most common industries in the region are wine production, coal mining, electricity production, tourism, and one of the world's largest horse breeding regions.
Hunter Valley's real estate market boasts an alluring combination of properties, with plenty of commercial and residential properties available for sale, as well as rural properties if you're looking for some quiet away from the hustle and bustle of the big city.
Within the Hunter Valley region, you will find areas such as Lake Macquarie, Tighes Hill, Cessnock, Gillieston Heights, East Maitland, Port Stephens and Newcastle. All popular spots, whether you're interested in property investment or residing in the area. According to a September 2024 report from Forbes, house prices in both Lake Macquarie and Newcastle have fallen 6%, which makes it a good time to buy.
As experts in real estate, we’re going to take a detailed look at the Hunter Valley market and take you on an exploration to find out whether this is the right locale for you, whether you're moving in or renting it out.
Hunter Valley real estate market trends
There are cities and suburbs of varying sizes throughout the region; residential buyers want a balance of price and amenities, and investors must consider how attractive an area is to a potential renter. With that in mind, we divide the area into three regions and cover some of the current trends in Hunter Valley real estate.
Average property prices
The Hunter Valley can be loosely divided into three different areas, so let’s take a look at the average property prices for each:
Wine regions
The Pokolbin housing market has seen growth of 1% over the last 12 months, with the median house price set at $1,590,000. Meanwhile, the unit rate has grown 14.1%, with apartments averaging $408.000. The median rental price has also grown over the last year, now set at $795 per week, a growth of 9.3%.
The Cessnock property market has also grown over the last year, rising by over 8% for a median house price of $605,500. The apartment market has grown by 9.5% in that same span. As for the rental market, the median rent is $500 per week, a rise of 2% compared to last year.
Coastal areas
Are you thinking coastal? Newcastle has a soaring rental market, with house rentals growing over 50% in the last twelve months. The average weekly cost of a house rental in the area sits at $870, while it's $650 for an apartment, an increase of 8.3%. Unit sale prices have increased by 7.7%, with a median price of $877,500.
With a median house price of $850,000, Port Stephens has seen almost 4% growth over the last year. On the rental front, the median rent is $590 per week, an increase of 3.6% over the last year. Rental yield runs around 3.99%.
Rural areas
If you have your eyes on more rural areas, there are plenty to choose from. Aberdeen and Scone are two of the most popular options, with Scone famous for its horse breeding. Median house prices in Aberdeen have grown over 10% to $497,500 and median rental prices by 9.8% to $505 per week.
House prices in Scone have increased by 8.7% over the last year; the median house price is now $595,000. Apartment-wise, the growth is much larger, an increase of over 11% for a median price of $323,000. The area has also seen growth in the rental market for both houses and apartments. The median rental price in the area is $400 per week, a growth of 17.6% versus last year. Meanwhile, the housing rental price has grown 4.5% to $522.
The Muswellbrook housing market has also grown, seeing an increase of 7.5% to a median house price of $500,000. Conversely, apartment prices are down by 2.4% to $300,000. However, with a rental yield of 5.8% and median rental prices of $370 per week, up 5.7% against last year, it does offer a prime investment opportunity.
The median house price in Singleton is $595,000 down by over 4% compared to last year. The apartment market has grown exponentially, with an increase of 17.4% to a median unit price of $415,000. On the rental market, houses and units are both on a 5% incline, with the median weekly rent for a house set at $580 and a unit at $420.
Rental market
If you're looking for the top rental areas within the Hunter Valley region, there are two standouts. Based on the most current figures from CoreLogic, Muswellbrook and Singleton come in the top 10 for New South Wales in unit rental yield, at 6.2% and 5.5%, respectively.
In addition, Scone, Cessnock, and Lochinvar have also seen growth in median rental values, while Muswellbrook offers the most value for your dollar as one of the most affordable suburbs in New South Wales.
There is a steep demand for rental properties in the Hunter Valley. Right now, the biggest issue is a scarcity of properties for rent; it's a prime opportunity for investors looking to capitalise on an investment property. That scarcity is driving the increase of rents across the region and ensuring vacant properties are very quickly leased.
What factors affect the market?
Whether you're buying to move in or thinking about investing in property in the region, there are a lot of factors to consider that may impact the market. All buyers should consider these factors before making a final decision about where to buy.
Economic conditions
Though the broader economy will always influence smaller regions, Hunter Valley typically trends better than the rest of the country in terms of rental yields and demand, growth, and unemployment numbers.
Like most regions, the Hunter region is heavily influenced by local industries, winemaking, mining, and tourism in particular. A downturn or a boom will impact property values and demand, whether it's residential or commercial.
Infrastructure
Transportation is a key factor when it comes to property values and demand. Whether you plan to commute or not, residents need accessibility via roads, airports, and public transport links that make travel simple and straightforward.
Quality schools also increase the demand in an area, with many parents happy to locate themselves in a specific area to send their children to the best schools. Likewise, residents need reliable healthcare and the freedom of choice.
Infrastructure planning for the area is planned through 2036, and a wide range of developments, including road upgrades, are being made to open new areas for housing development and beyond.
Lifestyle factors
The Hunter Valley is a stunning region with a plethora of outdoor activities and wineries that only add to the scenery. All this makes it an attractive destination for anyone looking to settle down in an area that delivers on the lifestyle front. Whether you're looking for a primary place of residence or a second home to retreat to, the area delivers on the lifestyle front, and that makes it a desirable choice.
With so many outdoor and recreational activities to choose from, as well as world-famous wineries and gourmet food experiences, the demand for housing in the area will always drive the prices. The key is to find the suburb that gets your foot in the door.
Tourism
Tourism is a major industry in the area and is one of the driving factors for residential and commercial properties, especially in Cessnock and Pokolbin. In particular, property investors looking to generate rental income in a tourist hotspot.
With plenty of wineries in the area, as well as music festivals and events, the area attracts plenty of visitors as well as residents. The growth of tourism-related businesses, whether wineries, hotels, or restaurants, creates demand for commercial property and heavily influences the market.
Investment opportunities in the Hunter Valley
The Hunter Valley region is ripe for investment, and there is more than one opportunity. Whether you're looking to invest in commercial or residential properties, there are options. There are also investment opportunities if you're looking for rural property, whether you're thinking about the equine industry, agriculture or viticulture.
Residential investment
The Hunter region is a fantastic destination close to Sydney, which is an attractive prospect for long-term capital growth. With high demand for rental properties around tourist hubs like Cessnock and Pokolbin, there's great potential for steady rental income.
Other up-and-coming suburbs, such as Mayfield West, Cameron Park, Raymond Terrace and East Maitland, also make for attractive investment opportunities due to their proximity to Newcastle and a growing demand for rental properties.
Consider location, market trends, and tourism when making your decision to buy in a particular area. Proximity to amenities is key for any property, but if you're looking at the short-term rental market in a tourist-heavy area, remember that though these generate higher incomes, there are seasonal fluctuations.
Rural property investment
With fertile, sprawling land abounding, the Hunter region offers plenty of rural property opportunities. Whether you're thinking about commercial farming, horticulture, viticulture, or breeding and training horses. There is a growing demand for equestrian services, which makes the area particularly attractive.
The rewards are simple – you can purchase a large parcel of land for much cheaper than urban acreage, which provides you with opportunities to diversify. The risks, however, come in the volatility of these markets, when weather heavily impacts operations or a lack of knowledge of the industry that makes management difficult. That's where a business development manager can come in handy.
Commercial property investment
Thanks to a thriving tourism industry, the Hunter region is an ideal area for commercial property investment. Whether you're looking into hospitality, retail or another service-oriented space, with so much demand, there are strong property returns for commercial properties.
As for commercial property values, industry growth is one of the biggest factors influencing this. Of course, zoning laws that impact use, rental yields, and location are also major factors to consider before investing. However, if your plan is to buy properties for lease, you should do some additional research about the most successful businesses to invest wisely to ensure consistent tenancy.
Frequently asked questions
What are the popular attractions and activities in the Hunter Valley?
In addition to Hunter Valley wineries, there are a plethora of activities and attractions that lure in tourists from all over the world. You can tour a local farm, ride a horse, visit an art gallery or factory, take a scenic flight, go on a true crime tour, go axe throwing, see the architectural sights or visit one of the many parks.
How is the quality of schools and healthcare in the region?
There are plenty of great schools to choose from in the Hunter region, whether you're looking for a top-performing arts school, a religious institution, or an academic focus. Every school provides an annual report on their website, so you can learn more about performance and determine which one is the best option for your children and aim to buy within the correct catchment area.
Hunter New England Local Health District covers the region, with almost forty public hospitals across the district.
Are there any upcoming developments or infrastructure projects that could impact property values in the region?
According to G Developments, a leading construction company in the area, vacancy rates have risen to 1.4%. However, Australia as a whole runs at 3%, which means a relatively fast-moving rental market with higher yields than average. There was a drop in housing rentals, but that is down to supply, with not enough houses for rent, serving up a prime opportunity for investors.
With heavy investment in local infrastructure, new space is being unlocked for new builds. Expect an increase in public transport links, green spaces, and new businesses.
Summing up
Whether you're looking to buy and move in or buy and lease, the Hunter Valley region offers a unique opportunity for property buyers. With a lifestyle to envy and scenery that can't be beaten, it's an attractive area for residents and visitors alike.
It's a growing region, and by 2036, local planners expect a population increase of well over 100,000, which means new jobs, new homes, and more amenities to accommodate such growth. It's a great time for investors to get in on the ground floor before an explosion of growth. It's also an excellent time to buy if you're looking for somewhere special to live. With stunning properties constantly hitting the market, now is the time to strike.
Whether you're buying in the Hunter region, selling, or have your eye on another location, DiJones can help. With over 20 years of real estate experience, we can assist you in securing the property of your dreams.
If you are thinking about selling, get in touch to request an appraisal. Alternatively, you can reach out if you need property management for leased properties you already own or are planning to invest in.
