Real Estate News

6 Of The Best Suburbs In Newcastle To Invest In 2022

Published 20th February 2022Updated 6th April 2023

The work-from-home trend began in June 2020, with roughly a third of Australian workers opting for this option. So naturally, professionals would be more focused on creating a stress-free home-office environment and Newcastle growth suburbs would be an ideal candidate to create that remote work-life balanced environment. 

Newcastle is aided by the sparkling Port Stephens fishing estuary, the Tasman Sea on the central coast, and the tranquil Hunter Valley River on the other with fighter pilots flying often appearing from the RAAF base nearby. While preserving a holiday atmosphere, it also serves as a home for professional, independent young adults.

Where to invest in Newcastle

In comparison to Sydney and other major cities, Newcastle's property market prediction for the next three years appears to be more stable. Newcastle's median house price, which is now $604,000, is predicted to drop by 3% to 5% between now and 2022, before rebounding in 2023. In comparison, Sydney's current median property price of $1,147,000 is expected to drop 7.9% by 2022 before rising 5% in 2023; With the best suburbs in Newcastle now having the 4th highest median property price in the country.

Housing-related government assistance, such as the First Home Loan Deposit and HomeBuilder programs, as well as non-housing fiscal stimulus, such as JobKeeper, assisted many Australians in meeting housing bills like rent and mortgage repayments. The move from packed CBD offices to home offices has also been expedited by COVID-19. 

With that, here's a list of some of the best suburbs in Newcastle Australia 2022, in no particular order, that show promising opportunities for both investors and people looking to find a live-in home.

This list is by no means complete, and we fully acknowledge that there may be better investment suburbs in Newcastle, NSW that we haven't mentioned.

Before making any property acquisition, always consult with a skilled financial counsellor about your individual condition and circumstances.


Wickham has been one of the Newcastle growth suburbs mainly inhabited by independent young adults. This suburb has been a young adult favourite, especially with its spectacular waterfront view which is found in most units, homes, and especially apartment complexes. 

With high vaccination rates in NSW, Wickham is fully regulated by the Port Stephens Council and will also be looking forward to hosting many music festivals as it had done pre-covid.

Wickham was connected to the CBD and Newcastle Beach by light rail in 2019, and the City of Newcastle Council's Wickham master plan has prepared the way for additional improvements in the region. With 200 unit apartment development projects many upcoming Wickham has become a sought out area of settling down as it has become more like an urban resort in contrast to it being an industrial hub earlier, making it one of our picks for best Newcastle suburbs to invest in.

The Median House Price for Wickham is more affordable compared to most suburbs in Newcastle but there’s potential for growth considering its upgraded community infrastructure and its beautiful beach views allowing for fewer vacancy rates showing where to invest in Newcastle.

  • Median property price Wickham: $700,000 for houses, $602,500 for units.
  • Average rental yield Wickham: 4.10% for houses and 4.70% for units.
  • The 5-year compound growth rate for Wickham: 4.10% for houses and 2.2% for units


Waratah is often synonymous with being identified as a sports hub in Newcastle. Because of this, many established families and couples looking to start families settle down in Waratah as it's one of the best suburbs in Newcastle. The Main North railway line runs through Waratah, which is 6 kilometres north of Newcastle's core business centre.

Even though Median Property prices are steadily increasing, investors are very keen on investing as the rental yield growth rate seems promising, and it's one of Newcastle’s growth suburbs. Because of the 5 to 10-year rise, Waratah is a fantastic tiny region for first home buyers and investors.

  • Median property price Waratah: $780,000 for houses, $530,000 for units.
  • Average rental yield Waratah: 3.30% for houses and 3.6% for units.
  • The 5-year compound growth rate for Waratah: 9.30% for houses and 5.80% for units


Like Waratah, Newcastle sibling Broadmeadow also houses many sports spectaculars with rugby being the all-time favourite. Broadmeadow has seen a rise in career-driven young adults settling in.

According to, several regional plans have recognised the suburb's potential and identified it as one of the Newcastle growth suburbs - particularly, its large expansions of former industrial property with chances for employment and housing. All of which are connected to the Newcastle city shopping centres and beyond by a network of public and active transportation links. About 30 hectares will be available for home construction, primarily along the eastern and northern perimeters, according to development businesses. Blocks of 2600-3000 flats, accommodating up to 7000 more inhabitants, are included in the blueprints.

With its high 5-year unit rental yields, many investors are looking to invest in houses.

  • Median property price Broadmeadow: $781,000 for houses.
  • Average rental yield Broadmeadow: 3.60% for houses and 3.20% for units.
  • The 5-year compound growth rate for Broadmeadow: 8.10% for houses and 6.5% for units


Blacksmiths is one of the fastest-growing suburbs in Newcastle, and given its location, it's easy to see why. Nestled along with the beachside neighbourhood of Lake Macquarie, its recent trends show an increase in established couples and families setting up in Blacksmith. With the work-from-home trend, there is a preference towards nice coastal residences with only a few minutes to the city, highlighting the need for improved work/life balance.

Given the strong 5-year growth rate, investment in rental units in Blacksmith is expected to offer excellent returns due to its geographical and aesthetic advantages, making it one of Newcastle's top suburbs.

  • Median property price Blacksmiths: $800,000 for houses.
  • Average rental yield Blacksmiths: 3.30% for houses and 2.50% for units.
  • The 5-year compound growth rate for Blacksmiths: 7.60% for houses and 39.40% or units


The High Demand for property in Lambton is often reflected in its high median property as compared to most suburbs in Newcastle. Since it's one of Newcastle's growth suburbs, It’s a highly sought-out place by families often with children with many banks offering home loans to be able to afford the competitive house prices.

According to Lambton has been revealed to be included in the most hunted suburbs in Australia with home buyers. Even though median property prices are comparatively higher, the majority of residents are owner-occupiers who wish to take advantage of the area's schools, village stores, and central proximity to major shopping centres.

  • Median property price Lambton: $920,000 for houses, $482,500 for units.
  • Average rental yield Blacksmiths: 3.10% for houses and 4.20% for units.
  • The 5-year compound growth rate for Blacksmiths: 8.60% for houses and 3.80% for units


Stockton is a high-demand property which is reflected in its median property prices especially owing to its beachfront properties settled mostly by older couples accompanied by their families.

The long-term growth rates between houses and units have raised interest in potential buyers contributing to its high-demand fast market.

  • Median property price Stockton: $935,000 for houses.
  • Average rental yield Stockton: 2.90%for houses and 2.30% for units.
  • The 5-year compound growth rate for Stockton: 8.70% for houses and 9.10% for units

Final Thoughts - Should you invest in Newcastle?

The decline in property market conditions is less noticeable in Australia's remote areas, where the monthly rate of capital gains has increased over the last three months. The city of Newcastle has a high chance of potential, owing to its Mega Sports centred suburbs and beautiful central coast beaches.

The COVID-19 pandemic has also brought much more awareness to the importance of our surroundings and home, especially as remote working continues to rise. Newcastle provides a good environment that addresses many of the concerns of WFH employees as well as families with children. 

Based on these trends and research, Newcastle is host to many promising suburbs that hold potential for both property investors and those looking for a place to call home. So if you’re asking yourself “Should I invest in Newcastle?”, the answer will depend on your priorities and what you hope to gain from your investment, but Newcastle should definitely be on your list of places to consider.

Want to stay up-to-date with all things real estate?

Subscribe to our FREE monthly newsletter for the best property content on the internet!

What is your first name?*
What is your last name?*
What is your email address?*

Disclaimer: The information provided on this blog is for general informational purposes only. All information is provided in good faith; however, we do not account for specific situations, facts or circumstances. As such, we make no representation or warranty of any kind whatsoever, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information presented.

This blog may also contain links to other sites or content belonging to or originating from third parties. We do not investigate or monitor such external links for accuracy, adequacy, validity, reliability, availability or completeness, and therefore, we shall not be liable and/or held responsible for any information contained therein.

CategoriesView all (+4)
Recent Posts
property investing strategies
Property InvestingHow to Invest in Property With Little Money
Property InvestingIs It A Good Time To Invest In Property? Here's How You Can Tell
io vs p&i
Property FinanceP&I or IO? - Best Loan Structure for Investment Property Explained

Ready to get more out of your rent roll?

Contact sales
Gain predictable cash flow
Retain full ownership and control
Scale your rent roll efficiently