Its latest July figures show Newcastle rental vacancies fell by 0.3 of a percentage point to 1.5 per cent and the median house price is expected to grow by 18% over the next three years, but growth in the next 12 months will be slow. Newcastle’s property price growth is very similar to that of Sydney’s. Newcastle was seen as more affordable than Sydney but in recent years prices have gradually caught up to the big smoke.

In 2001 there were nearly 57,000 dwellings in Newcastle, housing a population of over 137,000 people. The Department of Infrastructure, Planning and Nature Resources projects that over the next 20 years Newcastle’s population will increase by 7% and that it is going to grow at a relatively faster rate than many other areas in Australia due to its proximity to Sydney; the relative affordability of real estate; its coastal location and the likelihood of increasing economic activity.