Newcastle’s rise: The East Coast’s emerging industrial powerhouse
Newcastle is fast becoming one of the most attractive industrial property markets on Australia’s east coast. Despite rising land values, the city continues to offer compelling advantages over major metro markets like Sydney, Melbourne, and Brisbane. From competitive pricing to strategic infrastructure and a skilled workforce, Newcastle is drawing increasing interest from industrial businesses across the region and beyond.
Newcastle vs major East Coast industrial markets
When compared to larger metropolitan areas, Newcastle’s industrial property market remains competitively priced. The table below highlights land values and rental rates across key east coast precincts:
| Location | Land Values (2024) | Prime Rents (New Builds) | Existing Rents |
| Newcastle | $450–$1,000/sqm | $225–$275/sqm net | $150–$200/sqm net |
| Western Sydney | $1,500–$2,500/sqm | $280–$350/sqm net | $220–$280/sqm net |
| Melbourne (West) | $900–$1,600/sqm | $200–$260/sqm net | $160–$220/sqm net |
| Brisbane (South) | $850–$1,400/sqm | $190–$250/sqm net | $150–$200/sqm net |
Why industrial businesses are choosing Newcastle
Despite challenges such as rising prices and limited supply, Newcastle is increasingly on the radar for industrial businesses from Sydney, the Central Coast, and interstate. Here’s why:
Strategic location
Newcastle’s position between Sydney and the Upper Hunter provides access to both the state’s largest population centre and key mining, manufacturing, and agricultural regions. This makes it ideal for logistics, warehousing, and advanced manufacturing operations.
Lower operational costs
Even with recent growth, Newcastle’s land and rental rates remain well below those in Western Sydney, where land can exceed $2,500/sqm and prime rents surpass $300/sqm net. This cost advantage is a major draw for businesses looking to scale efficiently.
Skilled workforce
The Hunter Region provides a highly skilled workforce, particularly in engineering, logistics, and advanced manufacturing. Institutions like the University of Newcastle and TAFE support this ecosystem by producing highly skilled graduates ready to meet industry demands.
Port of Newcastle: a freight powerhouse
The Port of Newcastle is Australia’s largest east coast port by trade volume. Its strategic location and capacity make it a critical asset for industrial businesses. Expansion plans including the development of a deepwater container terminal are set to further enhance the region’s global freight capabilities, making Newcastle even more attractive for importers, exporters, and logistics operators.
Newcastle Airport expansion: International freight gateway
Set to open in August 2025, the new international terminal at Newcastle Airport will provide a significant boost to the region’s freight and logistics infrastructure. This expansion will enable direct international cargo handling, improving supply chain efficiency and opening new trade routes for businesses operating throughout Newcastle and the Hunter.
Lifestyle and liveability
Beyond business, Newcastle offers a high quality of life, affordable housing, and a strong sense of community. These factors make it easier for companies to attract and retain talent, especially those relocating from more expensive metro areas.
Newcastle’s industrial property market is now in the spotlight, fast becoming one of the east coast's most sought-after industrial investment destinations. With competitive land values, lower operational costs, and access to world-class infrastructure like the Port of Newcastle and the soon-to-be-expanded international airport, the region is well-positioned to support the next wave of industrial growth. As more businesses look beyond traditional metro hubs, Newcastle stands out as a smart, strategic, and sustainable choice for industrial investment in 2025 and beyond.
If you're considering investing in industrial property, now is the time. Contact our industrial sales team to help you find your next opportunity.
