The Hunter region has sparked recent interest for the significant investment in infrastructure, supporting a strong outlook for residential property investors purchasing into suburbs within the region.
About The Hunter Region
The Hunter region is Australia’s largest regional economy with an estimated $48 billion in annual output. It produces 80% of NSW’s electricity and 40% of the state’s coal resources. Other mainstays of the Hunter Valley’s economy are agriculture, tourism, defence, and the creative industries [1].
The NSW Government remains committed to the regions ongoing success and will continue to assist the region with economic diversification, job creation and the revitalisation of the Newcastle city centre.
A 20-Year Economic Vision for Regional NSW outlines the NSW Government’s vision to accelerate regional NSW’s economic growth in key sectors all ensuring the region will continue to play a critical role in the NSW economy. Some of the items in the vision includes:
Agribusiness;
Tertiary education;
Health care;
Trade and tourism opportunities with Asia
There are notable infrastructure projects currently in development for the region which will further accelerate the prospects for capital growth within fundamentally supported suburbs within the region.
Maitland Hospital Project | $470,000,000
One key project in the Hunter region is the NSW Government’s $470 million new Maitland Hospital.
This will be a facility to meet the growing health service needs for the surrounding communities of the Hunter Valley now and into the future.
The project is currently under construction (as at April 2021) delivering 1,250 jobs and completion is on track for early 2022 [2].
Hunter Innovation Project, Innovation Hub and The School Of Creative Industries | $25,000,000
The Hunter Innovation Project will house two groups:
Integrated Innovation Network (I2N) Hub and;
The School of Creative Industries, catering to entrepreneurs, start-ups, developers, technical specialists, business advisors, students and researchers.
Newcastle and the Hunter regions have a highly skilled workforce offering a diverse range of employment industries with both buildings in the Innovation Project looking to play a crucial role in boosting ongoing employment opportunities and the overall job growth for the region in the years to come.
The construction contract for the $25 million Stage 1A Honeysuckle City Campus project has been awarded to Hansen Yuncken who will bring to life the University’s latest development. The building will house the region’s new Integrated Innovation Network (I2N) Hub and additional facilities for the expanding School of Creative Industries [3].
Construction started early 2020 and compilation of Stage 1 is expected mid-2021 followed by operations
shortly thereafter.
Key Infrastructure Takeaways
The Hunter region continues to thrive as an economy and many more Australians are moving to the area and calling it home.
From a property investment perspective, the suburbs within the region will continue to be popular due to the lifestyle aspects and connectivity to employment nodes.
Furthermore, the market has experienced strong population growth in recent years. According to 2016 ABS Census data, there were 263,416 people in Hunter Valley excluding the Newcastle region (Statistical Area Level 4). In the previous 2011 Census, there were 243,246 people, representing a positive increase of 20,170 during the five years [4].
The assessment of the long-term planning of the NSW Government and Department of Planning division reveals an extra 131,500 people calling the Hunter region home by 2041.
Due to the growing population, the ongoing infrastructure planning as well as the strong affordable living, the market presents great opportunities for both investors and home purchasers alike.
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Looking to get the property investment conversation started?
Or, just looking to stay in the loop?
Jarryd Gauci – Property Investment Consultant
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.
References
[1] Hunter Invest
[2] NSW Health
[4] ABS