Why now is the time to invest in commercial developments in Newcastle
The days of Newcastle CBD being known as a ‘ghost town’ are fast coming to an end. Being the largest regional city in the state and a current hub for job growth and education, Newcastle’s investment opportunities from a commercial development perspective are blowing up hugely.
With major leaps in infrastructure currently being completed through the inner-city such as the light rail and the University of Newcastle’s city campus, Newcastle is poised for further business and commercial development growth. The last 12 months has seen commercial land values increase by 50.7 per cent across the greater Newcastle region with the inner-city showing some of the most remarkable growth1. The CBD property boom is also pushing up prices in more established suburban areas further out from the city such as Lambton, Waratah, Charlestown and Adamstown1.
The Strategic Plan for Newcastle outlines a vision centered strongly around the commercial development space:
“A smart, liveable and sustainable city. This city has a growing local economy with strong industries that are linked to national and international markets. Contained within a high quality urban environment, designed for future improvement, Newcastle is built upon vibrant and emerging businesses that thrive on innovation and creativity to generate a new sustainable community.”
So why should businesses set up shop in Newcastle?
Lower entry prices and higher yields are attracting more national businesses to shift their focus towards the Newcastle region for growth. Targeting smaller, well-positioned properties in places with population growth and a robust business environment brings a high return on investment for businesses looking to grow2.
Pay attention to the commercial property market drivers: Growth & Demand.
Australia’s major cities are beginning to suffer from market saturation. Too many competitors, higher property prices and costs of living all impact on the economy of a city and the likelihood of consumers wanting to buy in any industry. Regional areas such as Newcastle allow businesses to expand their reach and target market while reducing operating costs by avoiding the big city prices. With Newcastle’s population growth rate reaching upwards of 5.1% in a single year3 over the past decade, the demand for more residential and commercial property developments is similarly increasing. This is creating a stable projection for increased market demand well into the future.
The benefits to building your commercial space in Newcastle are clearly evident in the population, infrastructure and job growth over the past 5-10 years. But what else should you consider when building a successful commercial space?
Local area knowledge is key!
It is vital that you understand the demographics of the area you are wanting to build in. Take advantage of local knowledge and business trends within the area you have selected. Is your target market there and are they spending money in your suburb? Selecting a builder for your project who understands your local area such as the clientele you will be servicing, the local council you will be dealing with will make the whole process much more efficient, stress-free and deliver a greater result.
Nulex Construction is Newcastle’s premier commercial builder with years of experience and knowledge of the local area. Our success is a result of the strong foundations we have built through positive relationships with clients, architects, engineers, trade contractors and suppliers. Our track record shows that we successfully manage complex and difficult projects and that we apply the same level of care and diligence to both small and large projects.
Newcastle is rapidly growing and is expected to continue to do so for the foreseeable future. For reliable commercial development information, experience and local knowledge, contact the team at Nulex Construction.