Newcastle Property Market Recovering

BY ALICE PEART

New data released by the REA Group has shown Newcastle's property market is resisting the worst of  the downturn seen in capital cities across the country, with numbers falling to less than half of Sydney's.

Newcastle property prices are down from their peak by five per cent compared to Sydney at eleven per cent.

House prices across the country have been on a downward trajectory, particularly since the Banking Royal Commission and the subsequent tightening of lending practices.

Local property groups have attributed Newcastle's lack of 'bust' to the market relying more on home occupiers rather than investors.

The new data has also shown a spike in inquiries from buyers with consumer sentiment reportedly more positive.

Chief Economist for REA, Nerida Conisbee, has credited this recent spike to interest rate cuts by the Reserve Bank in a statement which said "all positive news for the local property market". 

But, the cuts reflect a soft job market and stagnant wage growth with some areas of the Hunter reaching over the national average of five per cent unemployment, which has continued to remain steady in figures released today.

Homes With Combustible Cladding To Face Hefty Repair Bill

BY OLIVIA PORTELL

Homeowners around the Hunter could rack up a bill equaling millions of dollars if their building has combustible cladding.

The New South Wales Government has identified four hundred and twelve buildings in need of repairs as a preventative measure.

Shadow Minister for Innovation Yasmin Catley says innocent homeowners are now facing the consequences.

"The cladding debacle overseen by this government stands to have a massive financial impact on property owners," she says.

"Properties that have cladding on them are finding it very difficult to get house insurance, it's imperative that the government provides assistance to these people so they can get the rectification work done."

Ms Catley says these owners may be forced to pay for repairs, even if they did not build the property.

She says it is essential that homeowners contact the government to ensure the original developer covers the costs, as repairs do not come cheap.

"What we've seen in Melbourne at the Lacrosse Building is an estimated 15 million dollars worth of repairs, so it is quite a costly exercise," she says.

"There is no doubt that the owner of the building will definitely be out of pocket."

As well as the repair costs, owners are also faced with the risk of their property decreasing in value by up to 90 percent as a result of the illegal cladding.

Grenfell Tower in London in flames as a result of combustible cladding.