$780 million John Hunter hospital plans revealed amid continuing Newcastle construction
While the full effect of COVID-19 on the property market will take months to become clear, Herron Todd White's latest report found current evidence is showing that the predicted deterioration has just not occurred within the Newcastle area.
HTW valuer Liz McAllister said local builders are confirming that their work pipelines are remaining strong after a dip at the beginning of the pandemic. This has largely been due to to government support in the form of the HomeBuilder Grant.
"We have seen an increase in the price of vacant land within larger land developments with developers looking to capitalise on the grants," she said.
Despite some of the grants being also available for apartments, HTW is not as positive about the apartment market.
It warns owner occupiers and investors that new properties are very frequently being sold at prices exceeding their resale value.
It suggests there is an oversupply in the rental vacancy situation with overall demand for units deemed "soft."
These investment opportunities are the 41 ongoing or new residential developments on Urban.com.au.
In their August report HTW noted that whilst buyer uncertainty has not stopped investors purchasing property, the volume of quality houses on the market has not fully recovered but was on its way up.
"Property prices in Newcastle and Lake Macquarie rose ever so slightly in the last three month period even with the region shedding 24,000 jobs," the HTW valuer's said.
It was highlighted that agents have noted that investors from outside of the region are showing interest in purchasing investments.
Major investment in infrastructure is under way including the newly revealed concept design for the seven-storey Acute Services Building for John Hunter and John Hunter’s Children’s hospitals.
Premier Gladys Berejiklian said the $780 million John Hunter Health and Innovation Precinct would drive significant economic growth in the Greater Newcastle region.
“John Hunter hospital is one of the busiest hospitals in NSW and this investment will provide enhanced health facilities ensuring the region has a world-class hospital to cater to its growing population,” Ms Berejiklian said.
“Construction of the precinct will support more than 3,000 jobs over the life of the project helping stimulate the economy, a key component of the NSW Government’s COVID-19 recovery plan.”
Early works on the new Acute Services Building are expected to commence in 2021 with main works construction scheduled to commence in 2022.
Observing the Newcastle commercial market, the workplace is described as pivoting as business leaders are seeing a reduction in business costs with staff working from home and for many this arrangement has become permanent.
Herron Todd White noted that companies are utilising less office space and using only meeting rooms and boardrooms, while hot desking and part time office use is becoming the norm.
However it did note this trend had yet to fully take hold in Newcastle.
"We see vacancy rates in some sectors rising in coming years as leases expire," Director Ed Thwaites said.
