Although 2025 was a great year for property growth across most of Newcastle, there were nine suburbs that actually dropped in value for median house prices.
We’ve gone through the data on Real Estate and created a definitive list of the suburbs in Newy where property prices have dropped the most over 2025. Unlike our list of Newcastle’s best performing suburbs, this page only has one table because the order is the same for both monetary value and percentage drop, with the exception of Newcastle East and Mayfield West switching places.
All data is based only on house prices (excluding units) except in the rare cases of suburbs where data was only available for units (like Newcastle East and Newcastle West).
Of course, past performance is not indicative of future results, so while these suburbs have dropped in value – and there might be a valid reason for that – with the overall trajectory of property prices it might be a good time to find a bargain in one of these areas.
The worst property drops in Newcastle
Although we often think of property as a sure-fire investment, there are times when the market dips or certain suburbs drop in price. There are a number of reasons for this, and often the market corrects itself, which, for some people, means it’s a time to look closely for potential investments.
| Suburbs | Median Dec ’24 price | Median Dec ’25 price | Money decrease | Percentage drop |
| Minmi | $810,000 | $527,500 | -$282,500 | -34.88% |
| Carrington | $1,050,000 | $990,000 | -$60,000 | -5.71% |
| Mayfield West | $895,000 | $847,000 | -$48,000 | -5.36% |
| Newcastle East | $1,800,000 | $1,751,500 | -$48,500 | -2.69% |
| Hamilton South | $1,780,000 | $1,740,000 | -$40,000 | -2.25% |
| Newcastle West | $735,000 | $720,000 | -$15,000 | -2.04% |
| Islington | $960,000 | $950,000 | -$10,000 | -1.04% |
| Broadmeadow | $990,500 | $982,500 | -$8,000 | -0.81% |
| The Junction | $2,145,000 | $2,137,500 | -$7,500 | -0.35% |
While most suburbs saw a fairly small drop, the prices in Minmi have plummeted. Multiple properties were put on the market around the same time following news that local bushland was to be cut down to make way for a housing development and the race began to snap up the new properties.
Elsewhere, there are pockets of contradiction. Mayfield West sits on this list despite Mayfield East topping the property growth charts, Newcastle East and West dropped (while Newcastle, Wickham and Cooks Hill all rose significantly), and both Broadmeadow and Islington dropped despite Hamilton and other nearby suburbs making notable gains.
Buying property in Newcastle
Even in today’s property market, there are pockets of opportunity if you know where to look. Minmi property is the most affordable it’s been for years, and plenty of other suburbs are also giving first time buyers a bit of breathing space. If you want to see if you can afford to get on the property ladder, speak to our mortgage brokers in Newcastle to get the ball rolling.
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* Newcastle East and West numbers based on units, not houses