FOUR fringe suburbs of Broadmeadow are tipped as the ones property buyers should watch on the back of the draft Broadmeadow Place Strategy.
Newcastle buyer's agent Chad Dunn believes Georgetown, Waratah, Lambton and Hamilton North are the top suburbs where property values could benefit from the plan for major urban renewal around Broadmeadow.
Newcastle council endorsed the draft strategy which outlines a 30-year plan for the suburb, including up to 20,000 new homes, 40,000 new residents and apartment buildings up to 30 storeys high.
It also comes as a big spike in housing targets for Newcastle were revealed by the NSW government.
Mr Dunn said the transformation of the Broadmeadow area could have significant impacts for property investors.
"The more that happens with the Broadmeadow strategy, these suburbs on the fringe will really come into their own," Mr Dunn said.
"I have noticed more interest and activity in Georgetown, Waratah, Hamilton North and Lambton but the problem is there is absolutely no stock.
"You could count on one hand the amount of properties available there at the moment."
Last week, The Newcastle Herald reported that the NSW government and City of Newcastle had finished a 139-page draft strategy for the Hunter Park sports and leisure precinct and surrounding suburbs.
The strategy will require an estimated $3 billion or more in infrastructure spending over the next 30 years on road improvements, parkland, a new indoor arena, regional aquatic centre and Hunter Stadium upgrades.
It would support up to 20,000 new homes accommodating 40,000 new residents across 313 hectares in Broadmeadow and parts of Hamilton, Hamilton East, Hamilton North and New Lambton.
The proposed new Broadmeadow town centre would include a light rail stop and see Newcastle Entertainment Centre, Newcastle Basketball Stadium and the PCYC moved to make way for the apartments.
Although the strategy is still in the pipeline, Mr Dunn said the area was drawing increasing interest from investors.
"I recently bought a block of units for a client in Womboin Road in Lambton which is close to the proposed area," he said.
"The investors I have spoken to are showing a lot of interest in Waratah and Georgetown because of the strategy.
"It has definitely put us on the map and a lot of the Sydney market is starting to take note that Newcastle seems to be proactively looking at rejuvenating the city."
However, Mr Dunn said there are "two trains of thought" from investors around buying property in these fringe suburbs.
"Some people are a bit concerned that with that many homes being released into that pocket, will that lower the value of existing properties?," he said.
"I don't think it will because the prices will be higher for new products, so that will raise the bar for existing stock."
Ray White Newcastle selling agent Tony Gough said the suburbs surrounding Broadmeadow would be desirable for buyers should the strategy go ahead.
"It's going to be very sought-after but if they're going to roll the dice on something this big, the infrastructure has got to be there to back it and they have to do it properly," Mr Gough said.
"Hamilton North has been a bit of a secret for a long, long time but all of those suburbs like Lambton, Waratah and Georgetown are already highly sought-after and tightly-held."
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