Newcastle and the Hunter Region: A Magnet for Major Commercial Property Investment
The Newcastle and Hunter Region have rapidly become one of Australia’s most attractive destinations for commercial and industrial property investment. Underpinned by consistent economic growth, infrastructure expansion, and a diversified industry base, the region offers a compelling alternative to metro markets. Investors are increasingly drawn to Newcastle not only for its strategic location and development potential but also for its relative affordability, allowing access to high-value assets at prices significantly below those seen in Sydney or Melbourne. This combination of economic stability and cost-effective entry points has positioned Newcastle as a relative hot spot in the national commercial property landscape.
A surge in high-value transactions
Over the past two years, the region has witnessed a series of landmark property deals that underscore its rising profile in the commercial real estate sector. These transactions reflect both strong investor confidence and the long-term potential of the region, particularly within the industrial sector, where limited land supply and favourable zoning continue to drive demand in a tightly held market. The following are key transactions that highlight the growing demand for quality assets in Newcastle and the Hunter Region:
Key transactions
4 Rural Drive, Sandgate | View PropertySold by EOI in August 2025 for $38,700,000Commercial Collective Agents: Head of Sales and Leasing,
Byrne Tran, and Commercial Director,
Jared Harris.Sales Commentary: Set on 2.81ha* with 2.11ha* of building area, the property generated $2,148,698.97* in gross annual income from 26 tenants. The transaction reflects strong investor appetite for large infill holdings offering solid income streams and long-term redevelopment potential within established urban precincts.
5 Steel River Boulevard, Mayfield West | View PropertySold by EOI in April 2025 for $13,750,000Commercial Collective Agents: Head of Sales and Leasing,
Byrne Tran, and Commercial Director,
Jared Harris.Sales Commentary: Positioned on a 1.32ha* site, this 3,875sqm* facility with DA approval for a 2,900sqm* warehouse extension was sold with a short-term lease to Kookaburra Education Resources Pty Ltd. The transaction highlights ongoing demand for high-quality industrial assets with expansion potential in Newcastle’s tightly held logistics market.
54 Clyde Street, Hamilton North | View PropertySold by EOI in May 2024 for $31,000,000Commercial Collective Agents: Head of Sales and Leasing,
Byrne Tran, Associate Director,
Brad Crouch, and Senior Executive,
Benjamin Morello.
Sales Commentary: Comprising 8.64ha* across five lots with 12,173sqm* of building area, the property produced over $1.2 million in annual income from 17 tenants spanning the transport, wholesale, and commercial sectors. The record-setting sale underscores the depth of investor demand and sustained capital flow into Newcastle’s industrial market.
11 Laverick Avenue, TomagoSold off market in May 2024 for $13,650,000Commercial Collective Agents: Head of Sales and Leasing,
Byrne Tran, and CEO and Licensee in charge,
Dane Crawford.
Sales Commentary: Situated on a 1.661ha* site with two heavy-duty workshops totalling 5,433sqm*, the sale reflects continued investor confidence in Tomago’s industrial market. The multi-tenanted asset offered rental growth potential, reinforcing the strong demand for well-located industrial investments near key transport infrastructure.
111 Munibung Road, Boolaroo | View PropertySold by Private Treaty in November 2023 for $17,867,014Commercial Collective Agents: Head of Sales and Leasing,
Byrne Tran, and Associate Director,
Brad Crouch.Sales Commentary: Positioned on a 1.31ha* site, this 6,688sqm* A-grade industrial facility was sold with a new 10 + 5 + 5 year lease to Sheffield Group, generating $1,200,000* net per annum plus GST. The purpose-built asset exemplifies the strong demand for high-calibre, long-term leased industrial investments within Newcastle’s expanding Boolaroo precinct.
131-135 Griffiths Road & 4-18, 24-26 Verulam Road, Lambton | View PropertySold by EOI in August 2024 for $9,250,000Commercial Collective Agents: National Director,
Adam Leacy, and Senior Executive,
Benjamin Morello.
Sales Commentary: Comprising two adjoining properties totalling 22,449sqm* of land and 12,050sqm* of building improvements, both were sold with a new 10 + 5 year lease to Swanson Industries Australia. Generating a combined net income of $1,142,756* per annum plus GST, the transaction reflects strong investor confidence in well-established industrial assets with long-term redevelopment potential on the city fringe.
61 Blue Rock Close, KaruahSold off market in March 2025 Commercial Collective Agents: National Director,
Adam Leacy, and National Director,
Matt Kearney.
Sales Commentary: Comprising 37.25ha* of freehold land, this significant resource-based holding includes established quarry operations. The sale underscores sustained investor demand for resource assets supported by long-term extraction potential and ongoing construction activity across the Hunter and Mid North Coast regions.
121 Munibung Road, Boolaroo Sold off market in December 2024 for $13,200,000Commercial Collective Agent: Head of Sales and Leasing,
Byrne Tran.
Sales Commentary: Occupying a 4.16ha* site within the Munibung Road industrial corridor, this strategic acquisition further reinforces Boolaroo’s evolution as a key employment and logistics hub. The sale reflects sustained buyer confidence in large-scale industrial holdings with redevelopment potential in one of Lake Macquarie’s fastest-growing precincts.
77 Racecourse Road, Rutherford | View PropertySold by EOI in December 2024 for $12,000,000Commercial Collective Agents: Head of Sales and Leasing,
Byrne Tran, and Senior Executive,
Craig Watson.
Sales Commentary: Comprising 13,284sqm* of building area on a 2.05ha* site, this substantial industrial complex features three warehouses with office amenities and extensive hardstand. The sale reinforces Rutherford’s position as a key logistics and manufacturing hub, with ongoing demand for large-scale industrial assets in the Hunter Region.
29 Station Street, Martins Creek | View PropertySold by Auction in May 2024Commercial Collective Agent: National Director,
Matt Kearney, and National Director,
Adam Leacy.
Sales Commentary: Comprising seven lots totalling 127.28ha*, Martins Creek Quarry was sold with a long-term 25-year lease to a market-leading civil construction company, returning $1,610,000* net per annum plus GST. The competitive sale result reflects strong investor confidence in resource-based assets, particularly those supported by long-term extractive approvals and established operational infrastructure.
117 Bull Street, Newcastle Sold off market in April 2023 for $31,400,000Commercial Collective Agent: National Director,
Matt Kearney.
Sales Commentary: Comprising a full city block in Newcastle’s West End, the property offers secure government income to 2028 and significant long-term redevelopment potential. The transaction highlights ongoing investor confidence in well-located commercial assets within the city’s rapidly evolving CBD fringe.
Why is Newcastle attracting strong investor demand
Newcastle’s appeal lies in its balance of affordability, infrastructure investment, and economic diversity. With the city’s population forecast to grow from 167,673 in 2021 to nearly 200,000 by 2041, and the broader Hunter Region projected to exceed 860,000 residents (ABS, 2023), demand for commercial and industrial assets continues to strengthen.
The Hunter Region generates around $86.3 billion in gross regional product (Hunter New Energy, 2024), supported by key industries including manufacturing, health care, logistics, and education. The region also accounts for over 40% of New South Wales’ mining expenditure, contributing more than $8.8 billion annually (NSW Mining, 2024). Ongoing projects such as the Port of Newcastle Clean Energy Precinct and the airport expansion are expected to deliver significant long-term employment and growth.
Commercial Collective continues to record increasing investor enquiry from outside the region, particularly from Sydney and interstate buyers. This trend reflects growing recognition of Newcastle’s value as an investment destination, offering competitive yields, development potential, and strong prospects for sustained capital growth.
