Hi Neil
I have lived in Newcastle since 98 and have investment properties in Sydney and Newcastle.
There has been a lot of job losses in the mining industry of late with several large support companies laying off personnel. I feel that this really effected towns further up the valley such as Singleton where the vacancy rates have really gone up. I would stay away from these towns
With regards to Newcastle itself - I feel that it still has a lot going for it as a property investment location as the population is diverse enough to support it.
Newcastle has changed alot in 15 yrs I have been here ( born and breed in Sydney ) BHP closed down soon after I moved up here - everyone thought the city would close down - it didn't
There was only one Japanese restaurant in town and few other Asian restaraunts . Now there are more Thai restaraunts than you can poke a stick at.
Honeysuckle forshore has been developed into a largely successful residential and commercial hub with plenty of restaraunts cafes and pubs in what was once a pretty run down area
GPT and Landcom have commited to the development of the Hunter st mall
The university is building a new campus in the city which will obviously encourage more students into town ( student accommodation needed )
The rail line has been confirmed to be removed b/w Wickham and Newcastle train station thus removing a controversial obstacle which has supposedly prevented a lot of development happening here in town - it will open the foreshore up to the rest of the city. It is supposed to be replaced by light rail.
I have heard on the grapevine that P and O have bought a plot of land along the honeysuckle foreshore for a cruise ship terminal - I admit this rumor is not confirmed .
Who would have thought that Newcastle would become a stopping port for cruise ships ( I most certainly didn't ) - but we seem to get a lot of them coming in to port for day stop
For other recent development see attached link
http://www.theherald.com.au/story/1649817/hunter-street-350m-puts-life-back-in-our-town/
After talking to several local agents recently - they are saying currently properties are selling fast in inner city suburbs of Tighes hill and Islington. To quote a agent friend of mine " houses are selling after just one open house - it's the best I have seen it in four years .
There is a lot of residential development happening here at the moment with several inner city apartment buildings being approved and built . PRD nationwide real estate I know sold all 16 one bed apartments off the plan for a apartment building on the cnr of Hunter and Newcommen st within 6 wks.
70 Elizabeth st tighes hill which I went thru for the 1st open inspection a week ago - now has a huge sold sticker on it as I drove past it last night .
With regards to renting - I own a block of flats in a inner city suburb of Newcastle which I bought and renovated 3 yrs ago - it have never been a problem to rent . However I don't think it is quite as crazy as it was a couple of years ago where the vacancy rates where close to zero
With regards to capital growth - after owning properties in both Sydney inner west and inner city Newcastle for over 10 years - obviously both have gone up however clearly Sydney has been the better property purchase for me .
Of the areas you mentioned - I would probably stick to the inner city suburbs such as tighes hill and Islington to capitalise on all the developmemt happening in the city
When I moved up here in 98 - I thought I would only stay for a year or two but here I still am after 15 yrs.
I hope this little rant helps - I'm sure other fourm regulars who live in Newcastle can give more advice.
Time to get out if bed - looks like another fine day here in Newie