10 Fastest Growing Suburbs in Newcastle NSW: Where Smart Investors Are Buying in 2025

Newcastle, NSW continues to shine as one of Australia's rising property hotspots. Thanks to its coastal charm, booming infrastructure, strong rental market, and growing economy, the city is becoming a top pick—especially for first-time property investors.

With more affordable entry points compared to Sydney and a lifestyle that appeals to professionals, families, and students alike, Newcastle offers a well-rounded investment opportunity.

If you're considering buying into one of the fastest growing suburbs in Newcastle NSW, working with a trusted mortgage broker from Mortgage Brokers Newcastle can make your experience a whole lot smoother. With access to a wide range of lenders, brokers help tailor loan options to your budget and goals—saving you both time and stress.

Ready to explore where the smart money is going in 2025? Let’s dive into the top 10 fastest-growing suburbs to watch.

Fastest-Growing Newcastle Suburbs

1. Cameron Park

Cameron Park has seen steady population growth, thanks to its modern housing estates, family-friendly atmosphere, and excellent connectivity to the Pacific Motorway. Located just 19 km from Newcastle CBD, it offers a peaceful lifestyle without compromising on convenience.

Major shopping hubs, schools, and parks are making this suburb increasingly popular among young families and first-time buyers.

• Median house price: $875,000
  
  
• Median unit price: $640,000
  
  
• Average rent: $620/week
  
  
• Annual growth (houses): 7.3%
  
  
• Population growth: +3.5% per annum
  
  
• Rental yield: 3.9%
  
  
• Infrastructure development: Expansion of shopping centres, road upgrades, and new public transport routes
  
  

2. Mayfield

Once a working-class neighbourhood, Mayfield is undergoing a revival. Located just 5 km from the city, it boasts historic homes, trendy cafes, and improved amenities. Its close proximity to the University of Newcastle and the CBD makes it a hot favourite among students and young professionals.

• Median house price: $810,000
  
  
• Median unit price: $580,000
  
  
• Average rent: $590/week
  
  
• Annual growth (houses): 6.1%
  
  
• Population growth: +2.8% per annum
  
  
• Rental yield: 4.2%
  
  
• Infrastructure development: Urban renewal projects and upgrades to local transport and parks
  
  

Explore how investment home loans in NSW can help you finance a property in revitalising suburbs like Mayfield.

3. Wallsend

Wallsend offers a mix of old-world charm and urban convenience. Located 11 km west of the CBD, this suburb is popular for its affordability and strong community vibe. With large blocks and increasing infrastructure investment, it's attracting young families and first-home buyers.

Local schools, healthcare services, and shopping centres add to its appeal as a practical and liveable suburb.

• Median house price: $730,000
  
  
• Median unit price: $520,000
  
  
• Average rent: $550/week
  
  
• Annual growth (houses): 6.7%
  
  
• Population growth: +2.5% per annum
  
  
• Rental yield: 4.3%
  
  
• Infrastructure development: Redevelopment of Wallsend Village and flood mitigation works
  
  

4. Charlestown

Charlestown is one of the largest commercial and retail hubs outside Newcastle CBD. With Westfield Charlestown, medical centres, and good schools nearby, it's perfect for families and professionals. It's also undergoing rezoning for medium-density housing, which opens up opportunities for developers and investors.

• Median house price: $870,000
  
  
• Median unit price: $620,000
  
  
• Average rent: $600/week
  
  
• Annual growth (houses): 6.9%
  
  
• Population growth: +3.1% per annum
  
  
• Rental yield: 4.0%
  
  
• Infrastructure development: Expansion of Westfield, public transport upgrades
  
  

5. New Lambton

Known for its charming character homes and leafy streets, New Lambton is in high demand. It’s close to John Hunter Hospital, Newcastle University, and quality schools, making it a smart long-term investment for families and professionals alike. The vibrant local village, with its cafes, boutique shops, and parks, adds to its strong lifestyle appeal.

• Median house price: $980,000
  
  
• Median unit price: $670,000
  
  
• Average rent: $640/week
  
  
• Annual growth (houses): 8.2%
  
  
• Population growth: +2.7% per annum
  
  
• Rental yield: 3.6%
  
  
• Infrastructure development: Health precinct expansion and school facility upgrades

Ready to Invest in Newcastle’s Property Hotspots?

Let our experienced Newcastle mortgage brokers help you secure the right investment loan for booming suburbs like Cameron Park, Mayfield, and Hamilton. We compare dozens of lenders to find a loan structure that suits your goals, cash flow, and long-term investment strategy. Call us on (02) 4920 6468 or visit www.mortgagebrokersnewcastle.com.au to get started.

6. Hamilton

Hamilton is a vibrant suburb filled with cafes, boutiques, and a buzzing nightlife scene. Its central location and excellent public transport access make it highly attractive for young professionals and downsizers. The suburb’s rich heritage architecture and community events, like the Beaumont Street Carnivale, also give it a unique and lively charm.

• Median house price: $1,050,000
  
  
• Median unit price: $690,000
  
  
• Average rent: $670/week
  
  
• Annual growth (houses): 7.8%
  
  
• Population growth: +2.2% per annum
  
  
• Rental yield: 3.3%
  
  
• Infrastructure development: Beautification of Beaumont Street, transport connectivity improvements
  
  

7. Lambton

Lambton is gaining popularity for its village feel, access to Lambton Park, and close proximity to the University of Newcastle. It's a top pick for families and academic professionals. Renovation potential also attracts property flippers and developers.

The suburb also boasts a strong local school catchment and a charming main street lined with cafes, shops, and heritage buildings.

• Median house price: $900,000
  
  
• Median unit price: $610,000
  
  
• Average rent: $615/week
  
  
• Annual growth (houses): 6.5%
  
  
• Population growth: +2.4% per annum
  
  
• Rental yield: 3.7%
  
  
• Infrastructure development: Park upgrades, nearby school developments
  
  

Considering a fixer-upper in Lambton? Learn more about renovation loans in Newcastle.

8. Merewether

Merewether is one of Newcastle’s most prestigious beachside suburbs. With consistent capital growth and strong rental returns, it continues to attract high-income earners and lifestyle buyers. Surf culture, ocean baths, and cafes make it a coastal dream.

Its proximity to the CBD and breathtaking coastal walking trails further boost its appeal for both residents and investors.

• Median house price: $1,650,000
  
  
• Median unit price: $870,000
  
  
• Average rent: $950/week
  
  
• Annual growth (houses): 9.1%
  
  
• Population growth: +1.9% per annum
  
  
• Rental yield: 3.0%
  
  
• Infrastructure development: Foreshore improvements and public amenity upgrades
  
  

9. Jesmond

Jesmond is a student-centric suburb just a stone’s throw from the University of Newcastle. It's affordable, has solid rental yields, and offers great shopping at Stockland Jesmond. Ideal for entry-level investors.

Ongoing demand for student accommodation and planned upgrades around the university precinct make it a promising long-term investment area.

• Median house price: $690,000
  
  
• Median unit price: $470,000
  
  
• Average rent: $530/week
  
  
• Annual growth (houses): 5.9%
  
  
• Population growth: +3.3% per annum
  
  
• Rental yield: 4.6%
  
  
• Infrastructure development: University precinct growth and road upgrades
  
  

First-time buyer? Check out your options for low deposit home loans in NSW.

10. Elermore Vale

Elermore Vale offers value for money and strong future growth prospects. With family-friendly infrastructure, easy access to major hospitals, and proximity to the M1, it’s a suburb to watch. New residential developments and nearby retail precincts are also attracting attention from both investors and growing families alike.

• Median house price: $820,000
  
  
• Median unit price: $580,000
  
  
• Average rent: $590/week
  
  
• Annual growth (houses): 6.4%
  
  
• Population growth: +3.0% per annum
  
  
• Rental yield: 4.1%
  
  
• Infrastructure development: New housing estates and road connectivity projects
  
  

Sources: Realestate.com.au, Cotality, Domain, NSW Government, SQM Research. Please note that property prices tend to fluctuate over time; hence, it’s always best to consult with a real estate agent for the latest market values. 

Why These Newcastle Suburbs Are Booming

The suburbs listed above aren’t just rising stars. They're smart investment choices thanks to their affordable prices, infrastructure upgrades, strong rental demand, and ongoing gentrification. For first-time property buyers, areas like Jesmond, Cameron Park, and Wallsend offer entry-level pricing with strong potential returns.

Meanwhile, beachside spots like Merewether and lifestyle hubs like New Lambton provide long-term capital growth.

Investing in Newcastle? We’ll Handle the Loan Legwork for You

Finding the right lender is crucial—especially when you're targeting high-growth areas like New Lambton, Wallsend or Merewether. Our dedicated Newcastle mortgage brokers handle the entire investment loan application process from start to finish, so you can focus on property hunting. Let’s talk! Call (02) 4920 6468 or visit www.mortgagebrokersnewcastle.com.au.

FAQs

What is the fastest-growing suburb in Newcastle NSW?

Cameron Park currently leads due to its rapid development, strong population growth, and affordable house prices.

Is Newcastle NSW a good place to invest in property?

Yes, it offers affordability, rental demand, and strong growth compared to major metro areas.

What is the average rental yield in Newcastle?

Rental yields in growing suburbs range from 3.5% to 4.6%, depending on the area and property type.

Which Newcastle suburbs are best for first-time home buyers?

Jesmond, Wallsend, and Elermore Vale are popular due to affordability and infrastructure.

Are house prices rising in Newcastle?

Yes, most suburbs have shown consistent annual growth between 5.9% and 9.1% over the past year.

How can I finance a property in Newcastle?

A mortgage broker can help match you with suitable lenders and loan products. Visit Mortgage Brokers Newcastle for help.

What are the benefits of using a mortgage broker in Newcastle?

Mortgage brokers offer access to multiple lenders, expert advice, and help secure better rates and loan terms.

Ready to Invest in One of the Fastest-Growing Suburbs in Newcastle NSW?

If you're looking to buy in one of Newcastle’s fast-rising suburbs, now is a great time to act. Whether you're a first-time buyer or a seasoned investor, the right advice can make a world of difference. The expert team at Mortgage Brokers Newcastle is here to help you find the perfect home loan tailored to your situation.

Visit www.mortgagebrokersnewcastle.com.au or give them a ring at (02) 4920 6468 to get started. Let a local broker guide you through your options with honest advice and access to over 40 lenders. It's about time you got the support you deserve when making one of life’s biggest decisions.