Adamstown Property Market Update 1st Half 2025
Adamstown is a charming suburb in Newcastle (NSW) known for its friendly community atmosphere and convenient amenities. The suburb offers a historic charm mixed with modern architecture; as well as parks, shops and cafes; making it ideal for families.
Property Trends
In Q4 2024, Adamstown recorded a median house price of $1,378,500 and a median unit price of $765,000. This represents an annual (Q4 2023 - Q4 2024) price growth of 12.1% for houses and 10.9% for units. Comparing Q4 2023 and Q4 2024, total sales surged by 55.7% (to 137 sales in Q4 2024) for houses and grew by 7.5% (to 72 sales in Q4 2024) for units. This confirms a highly demanded market, which created a buffer against higher interest rates (hence price growth). This suggests that now is an ideal time for owners to capitalise on their investments. That said, price growth in the past 6 months (to Q4 2024) have not been as high, at 9.8% for houses and 4.8% for units, which creates an opportunity for first home buyers to enter the market.
Project Development
Adamstown will see approximately $179.6M of new projects commencing construction in 2025. Approximately 252 units/apartments and 60 dwelling are planned in 2025, which will take time to construct. Once built (and available) this will assist with current demand, creating a more sustainable price growth for buyers to enter the market.
Rental Market & Growth
House rental yields in Adamstown was 3.5% as of December 2024, was slightly above the Newcastle LGA (3.3%) average and higher than Sydney Metro (2.7%). Furthermore, median house rental price increased by 9.0% in the past 12 months to Q4 2024, at $730 per week. In the same timeframe the number of houses rented decreased, by -17.2% (to 125 houses in Q4 2024); suggesting an undersupply. This indicates a highly demanded and competitive house rental market in Adamstown, which is beneficial to investors.
Vacancy Rates & Property Investment
Adamstown recorded a vacancy rate of 0.5% in December 2024, well below the Newcastle LGA average of 1.3% and Sydney Metro’s 2.1%. Vacancy rates have fluctuated in the past 12 months, but overall showed a declining pattern, which indicates an even tighter rental market. Furthermore, a 0.5% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties in Adamstown. This creates a conducive environment for investors, even with a higher entry price (for houses and units) in the past 12 months to Q4 2024.
