The Albanian government’s announcement of the development phase for the Newcastle-Sydney high-speed rail line will drive significant growth in the Newcastle and Central Coast commercial property markets, experts say.
According to Raine & Horne insiders, the high-speed line will boost the commercial property market and encourage more companies to set up headquarters in Newcastle.
Raine & Horne chairman Angus Raine said the announcement is a long-awaited turning point for Gosford, The Central Coast, Newcastle and the Hunter Valley region.
“We’ve been hearing about fast rail for more than 30 years, and it finally feels real now that we’re saying the project will be finished in 2028,” he said.
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The Albanian government announced the development phase for the high-speed rail line between Newcastle and Sydney. Photo: NewsWire / Martin Ollman
Artist impression of the high-speed line. Image: Australian Government High Speed Rail Authority Newsletter, January 2025
“Faster, more reliable connectivity between Sydney, Gosford, the Central Coast and Newcastle will prove transformative for local economies and property markets.
“For commercial real estate in particular, improved access to the Gosford and Newcastle CBDs will increase business confidence, attract investment and ultimately boost value and rentals on the Central Coast and Newcastle.”
Brad Wallace, commercial director of Raine & Horne, agreed that the rail link will have a “huge” impact on commercial property values in the steel city.
“The announcement brings additional positivity to the local commercial market, and it is likely that a growing number of Sydney-based companies will move their headquarters to the Newcastle region,” he said.
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Image: Australian Government High Speed Rail Authority
Mr Wallace said they have already seen major companies such as Nib Health Insurance and Mining and Resources Giant Bradken make the decision to locate their headquarters in Newcastle rather than Sydney.
According to Mr Wallace, the rail link will have a particularly profound impact on office markets as businesses seek space and more workers return to Newcastle’s CBD, which will support retail activity and potentially restore Hunter Street to its former strength as a key CBD area.
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“Local councils and stakeholders are calling for Broadmeadow to become the Newcastle stop for high-speed rail, strengthening its role as a gateway hub for regional connectivity,” he said.
He also pointed to Broadmeadow’s 30-year Place Strategy, which guides its transformation into a vibrant mixed-use center with jobs, entertainment and transit-oriented commercial development.
The rail link will become a major stopping point and extend to Gosford on the NSW Central Coast.
Raine & Horne Commercial Central Coast director Geoff Tilden said Gosford is very underutilized, especially for high-quality office space with “so much opportunity for commercial property construction”.
“We have large government tenants at the moment looking for space here, but they can’t find it in Gosford,” he said.
“There are plenty of opportunities to mix commercial real estate with residential space and benefit from the current destination.”
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Mr Tilden noted that Gosford was the first location to benefit from the NBN rollout, a move that has prompted many businesses to move to The Central Coast to take advantage of this speed.
“I expect companies will see land across the Central Coast, with plans to build later,” he said.
“We may not see a huge increase in the short term, but in the long term the benefits will be enormous, especially as our rents and costs of living are cheaper, and this comes with the benefit of an available workforce.”
According to Mr Tilden, the local industrial market has already seen many companies coming from Sydney to The Central Coast, “so the office and retail markets should follow suit as they tend to go hand in hand.”
Hunter Street in Newcastle could regain its former strength as a major CBD district.
“It will be very attractive to people looking to move to the Central Coast,” he said.
Mr Raine said that while a high-speed line would go a long way in spreading business to Newcastle and Gosford, “it would be great to see a revival of the proposed 7-mile Blue Mountains Tunnel (Blackheath to Little Hartley), which was shelved due to its high costs.”
“Experience has shown that over time, these regional connections bypass bottlenecks, open affordable markets for commercial enterprises and bring much-needed economic growth to regional hubs.”
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