ACCOMMODATION close to the University of Newcastle is set for a boost with the development of 12 new townhouses.
Construction of 12 off-the-plan townhouses at 10-12 Naughton Avenue, Birmingham Gardens has commenced and three of the residences have already sold to buyers.
The development will provide a boost to students seeking accommodation options close to the university campus and investors looking to purchase in an in-demand area.
Real estate agency Raine & Horne Newcastle's Brad Wallace said properties in Birmingham Gardens were dominated by student accommodation due to the suburb's proximity to the university.
He expects the development to attract both first-time homebuyers and investors.
"Birmingham Gardens is tightly held as most investors hold this type of asset long term because they have low vacancy rates and solid returns," Mr Wallace said.
"For example, these three-bedroom apartments are generating yields of five to six per cent, which is extremely generous compared to the Hunter region's average of a tick over 4 per cent for apartments.
"There are also very few new build apartments of this size in the Birmingham Gardens region, which is right on the doorstep of the University of Newcastle."
Given its close position to the university, Mr Wallace said the development - known as Synergy Gardens - has garnered interest from overseas investors, with enquiries from China, India, Hong Kong and Singapore.
"Not only are we fielding international enquiry, but we expect the residences to be popular amongst young families and professional couples," he said.
Built by Hunter Coast Homes, each townhouse comprises three bedrooms and 2.5 bathrooms with quality high-end finishes.
All dwellings will have auto-lock-up garages, open-plan living areas, premium kitchens with Caesarstone benchtops and stainless steel appliances.
The townhouses are priced from $614,000 and are due for completion in mid-2023.
