https://commercialcollective.com.au/wp-content/uploads/2025/06/bbe72180-413a-4f5b-aef3-5a434333c514.jpg
Market Overview | Resilience Across the Board The industrial property
market in Newcastle NSW continues to demonstrate strength and adaptability
in 2025. With high activity across key precincts and sustained interest
from both investors and owner-occupiers, the region remains a focal point
for industrial real estate in New South Wales. Newcastle’s industrial
market is active...Read More→
https://commercialcollective.com.au/industrial-property-market-update-mid-2025/View article
View summary
Industrial Property Market Update – Mid 2025
Market Overview | Resilience Across the Board
The industrial property market in Newcastle NSW continues to demonstrate strength and adaptability in 2025. With high activity across key precincts and sustained interest from both investors and owner-occupiers, the region remains a focal point for industrial real estate in New South Wales.
Newcastle’s industrial market is active across multiple precincts, supported by strong geographical coverage and a diverse buyer profile. While the strata unit segment remains a core component of the market, transaction speed has slowed slightly due to an oversupply of smaller units and the current interest rate environment. Despite this, demand from small to medium enterprises (SMEs) seeking turnkey solutions remains steady.
Land sales are regaining momentum, particularly in undersupplied areas such as Hexham. Here, limited availability is driving consistent enquiry from both developers and owner-occupiers. Meanwhile, investment appetite is strong in established locations like Cardiff, where secure assets with reliable tenant covenants are increasingly sought after.
Leasing Market
Leasing activity is gaining traction across all asset classes, with notable strength in the smaller format market. Since Q1, tenant urgency has increased, resulting in shorter campaign periods and heightened competition for available space.
Beresfield continues to perform exceptionally well in the medium to large format leasing segment. Its industrial zoning, strategic location, and excellent transport connectivity make it a preferred choice for businesses seeking long-term operational hubs. This precinct’s limited competing supply further enhances its appeal to tenants looking for stability and scalability.
Sales Market
Sales activity in Newcastle’s industrial sector is showing positive signs, particularly in strata units and land parcels. While strata transactions are currently tempered by market saturation and interest rate pressures, enquiry levels remain stable. Should monetary policy ease, future project sales are expected to rebound.
Investment sales in the $1.5m – $2m range are performing strongly in Cardiff, with yields showing slight compression due to increased buyer competition. Meanwhile, land in Hexham continues to attract steady interest, reaffirming its status as a high-demand location for both occupiers and developers.
Newcastle Overview
Newcastle’s industrial market offers a compelling mix of affordability, accessibility, and long-term growth potential. With strategic precincts like Beresfield, Cardiff, and Hexham leading the charge, the region is well-positioned to meet the evolving needs of industrial occupiers and investors alike.
As we move through 2025, Newcastle’s industrial property market remains a standout performer in regional NSW. Whether you’re an investor seeking stable returns or a business looking for a strategic base, Newcastle offers a dynamic and resilient industrial landscape worth exploring.
If you’re looking to capitalise on Newcastle’s industrial market, whether you’re an investor, developer or occupier, now is the time to explore opportunities in one of Australia’s fastest-growing markets.
Get in touch to discuss how we can help you secure your next industrial asset.
