Newcastle suburbs map

10 Best Suburbs in Newcastle to Invest in 2024

Vision HomesHome Building, Newcastle

The Newcastle region is quickly emerging as an attractive investment in the New South Wales real estate market. The state’s second-largest metropolitan city boasts stunning beaches, a lively CBD, family-friendly suburbs and lower median house prices than the Central Coast and Sydney markets.

Across all demographics, Newcastle residents enjoy a laid-back beach lifestyle with perfect weather all year round in affordable housing and good-sized land. Compared to other suburbs in NSW’s cities, those in Newcastle aren’t known for their traffic and partake in a bustling entertainment and nightlife scene without Sydney’s stress.

As Newcastle’s appeal starts to rise, we’ve shortlisted the best suburbs in Newcastle to invest in, whether you’re a first-home buyer or an experienced real estate investor.

Newcastle, NSW: 10 Best Suburbs for Investment Property

  1. Mayfield
  2. Mereweather
  3. Cooks Hill
  4. Adamstown Heights
  5. New Lambton
  6. The Hill
  7. Charlestown
  8. Stockton
  9. Wickham
  10. Anna Bay

1. Mayfield

Located in northwest Newcastle and 5km from the CBD, Mayfield is Newcastle’s suburb to watch. Originally an industrial centre in the 1920s, Mayfield now welcomes home investors and buyers seeking the harmony of city buzz and coastal relaxation. Between its strong rental demand and active community, Mayfield is an attractive investment suburb that also appeals to families looking to settle down.

Why invest in Mayfield?

  • Close proximity to the city centre
  • Easy access to main roads
  • Great for families and students – a convenient location for schools and amenities, and close to the University of Newcastle
  • Opportunity to renovate or rebuild, as Mayfield consists of older homes and new developments
  • Current public transport infrastructure developments position Mayfield at the heart of future growth and long-term investment

2. Merewether

Newcastle’s relaxed beach lifestyle reaches its pinnacle with Merewether’s waterfront properties which range from beachside units to comfortable family homes. One of the more expensive suburbs on our list, Merewether’s property prices have hit a median house price of around $1.8 million. Fortunately, since property is in such high demand in Merewether, rental yields hit a grand 2% return, making it one of the best investment suburbs in Newcastle.

Why invest in Merewether?

  • Home to the picturesque Merewether Beach
  • High demand for rental property
  • 4km from Newcastle CBD
  • Various lookouts and green areas

3. Cooks Hill

Home to the immensely popular “eat street” of Darby Street, Cooks Hill is an inner-city suburb in Newcastle, lined with Victorian terrace housing, trees, timber cottages and corner pubs. Hence, investors can expect high rental yields in Cooks Hill as there is an increasing rent demand rise for rental properties.

The median property price is $1.26 million.

Why invest in real estate in this suburb?

  • 2km from the CBD
  • Trendy and young suburb
  • 5-minute drive to Newcastle Beach
  • Darby Street welcomes over 25 restaurants and cafés
  • Many of Newcastle’s famous pubs are in Cooks Hill
  • Other recreational activities include the Newcastle Region Art Gallery on Laman Street, and football and rugby union teams

4. Adamstown Heights

The boundary between the Lake Macquarie and Newcastle City LGA, Adamstown Heights is an up-and-coming, family-friendly suburb for first-home buyers and downsizers. With several public transport connections to boast, the suburb offers a great quality of life with a median house price of roughly $1.06 million.

Why invest in Adamstown Heights?

  • Great for families
  • 8km from Newcastle CBD, 3km from Charlestown
  • Plenty of green spaces
  • Major shopping centres: Westfield Kotara

5. New Lambton

Situated in the city’s west, New Lambton takes the crown for best family-friendly suburbs in Newcastle. Quiet and leafy, New Lambton feels more like a village and contains shopping districts, schools, parks and several sports fields. Home buyers can experience the tranquillity of the suburbs a stone’s throw away from the city centre.

Why invest in this suburb?

  • Only 6km from Newcastle’s CBD
  • Great recreation: parks, cafés, cornered by urban bushland nature reserve
  • Clean and low in crime
  • Several great schools

6. The Hill

Prestigious and historic, The Hill has long moved away from a convict prison block and is now one of Newcastle’s wealthiest suburbs. It’s rare to find real estate vacancy rates in The Hill, but homeowners and property investors with money can expect a high rental yield from tenants.

The Hill is characterised by charming townhouses, spacious apartments and grand houses, making it optimal for young professionals, families and retirees. The median property price in The Hill is around $1.2 million.

Why invest in real estate in this suburb?

  • Part of the Newcastle CBD
  • Full of history
  • Highly sought after
  • 3-minute drive to Newcastle beach

7. Charlestown

One of the best Newcastle suburbs for shopping and property, Charlestown is located in Greater Newcastle’s outer suburbs under the City of Lake Macquarie. Charlestown Square is the largest shopping centre in the Hunter Region. As such, its commercial relevance and convenience promise high rental yields for property investors.

Why invest in Charlestown?

  • Affordable – median property prices range from $600k to $900k
  • Wide range of schools
  • A quiet and family-friendly suburb
  • Reliable transport infrastructure and medical facilities
  • 10km from Newcastle CBD

8. Stockton

The sole residential suburb of the City of Newcastle located above the Hunter River, Stockton’s sufficient isolation results in a country-town atmosphere, despite technically being an inner-city suburb. A ferry service and bridge connect the peninsula to central Newcastle, making it attractive for families, retirees and young people from Sydney who enjoy both beach and city lifestyles. With a median house price of $1 million, Stockton is proving to be one of Newcastle’s key suburbs to invest in.

Why invest in real estate in Stockton?

  • Stockton’s peninsula is 600m from the Newcastle CBD
  • Attractions include Stockton Beach, Shipwreck Walk
  • Strong sense of community – independent pubs, shops, clubhouses and swimming pools decorate the suburb

9. Wickham

Wickham is one of the best suburbs in Newcastle for any young adults from Sydney, the Central Coast or Regional NSW planning to study in Newcastle. Originally an industrial suburb, Wickham has benefitted from gentrification to create a lively entertainment and dining scene with housing options comprising modern apartments and terrace homes. Rental yields on properties in Wickham remain consistently high due to considerable rental demands, and median property prices range from $600k to $700k.

Why invest in this suburb?

  • 3km from Newcastle CBD
  • Waterfront views
  • Well-connected with interstate trains and intercity public transport
  • Close to TAFE NSW and the University of Newcastle
  • Central locations for both Newcastle and Merewether Beach

10. Anna Bay

An hour north of Newcastle under the Port Stephens Council local government area is the regional town of Anna Bay. With a median house price of under $700k, Anna Bay is a worthwhile investment for those from Sydney looking for a quieter, coastal lifestyle. Popular with retirees and perfect for those who prefer remote working, Anna Bay is a hidden gem of good blocks, beaches and community spirit.

Why invest in real estate in Anna Bay?

  • Relaxing regional coastal town lifestyle
  • 10-minute drive to Nelson Bay
  • An hour’s drive to Newcastle
  • Family-friendly suburb, close to schools


It’s Time to Invest in Newcastle, NSW

Whether you’ve decided on a suburb to invest in or would like a sea change somewhere in the Hunter region, Vision Homes are here to help.

Our dedicated and experienced team know how to build a family home that won’t grow old. We specialise in designing houses that reflect the relaxed lifestyle of Newcastle’s suburbs, perfect as an investment to rent or move into right away. Our Newcastle home builders pride themselves on quality craftsmanship and will help with every step of the journey.

Visit our display homes across Newcastle, the Central Coast and the Hunter Valley for a taste of what we can offer, or get in touch to begin the process of your custom Newcastle home build.