Raine & Horne Commercial Says High Speed Train Will Drive Commercial Markets From Newcastle to Central Coast

Raine & Horne Executive Chairman - Angus Raine | Brad Wallace, Principal of Raine & Horne Commercial Newcastle | Geoff Tilden , Director, Raine & Horne Commercial Central Coast

The announcement by the Albanese government of a high-speed rail link between Newcastle and Sydney[1] is set to drive the commercial property market higher across Newcastle and the Central Coast, according to Raine & Horne commercial property experts. 

Angus Raine, Executive Chairman of Raine & Horne, said the high-speed rail announcement denotes 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 with talk of the project being shovel-ready by 2028.

“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 lift business confidence, attract investment and eventually drive values and leasing across the Central Coast and Newcastle.”

Brad Wallace, Principal of Raine & Horne Commercial Newcastle, agrees the high speed rail link  will have a “huge” impact on the steel city’s commercial property values.

“The announcement brings additional positivity to the local commercial market, and it is likely we will see a growing number of Sydney-based companies transfer their head offices to the Newcastle region,” said Mr Wallace.

 “Already we have seen major corporations such as nib Health Insurance and mining and resources giant Bradken make the decision to have their head office in Newcastle rather Sydney, and migration levels are expected to jump, making the high speed rail link a net positive for the Newcastle commercial market.

 Mr Wallace believes the high speed rail link will have an especially profound impact on office markets, as businesses seek space and more workers return to the Newcastle CBD, underpinning retail activity, and potentially restoring Hunter Street to its former strength as a key CBD precinct.

According to Mr Wallace, “Local councils and stakeholders are pushing for Broadmeadow to be the Newcastle stop for high speed rail, reinforcing its role as a gateway node for regional connectivity.”

He noted that the Broadmeadow precinct has a 30-year Place Strategy, guiding transformation into a vibrant mixed-use centre with, jobs, entertainment, and transit-oriented commercial development. “The strategy explicitly includes planning for integrated transport corridors including fast and light rail, and promotes high density commercial development adjacent to rail infrastructure,” said Mr Wallace.

A boost for the Central Coast commercial property market

The upsides of the high speed rail link will extend to Gosford on the NSW Central Coast, which is set to be a key stopping point.

Geoff Tilden, Director, Raine & Horne Commercial Central Coast, said, “There are so many opportunities for commercial properties to be built in Gosford. Gosford is very under-utilised especially for quality office space.

“We have major government tenants currently looking to locate space here, and they can't find it in Gosford. There is plenty of opportunity to mix commercial property with residential space, and benefit from the current zoning.”

Mr Tilden points out that Gosford was the first location to benefit from the NBN roll out. “As a result, we have seen a lot of companies relocate to the Central Coast in order to harness the speed of the NBN.

“I expect to see companies land bank across the Central Coast, with plans to build later. We may not see a massive short term uplift but in the long term the benefit will be huge especially as our rentals and cost of living are cheaper, and this is coupled with the upside of an available workforce.

“The local industrial market has already seen a lot of corporates coming up to the Central Coast from Sydney, so office and retail markets should follow, as they usually go hand in hand,” noted Mr Tilden.

“There is already a strong residential base in Gosford,” Mr Tilden said, “That’s probably going to double if the high speed train comes through, and we can offer new residents somewhere to work. It will be very attractive for people wanting to relocate to the Central Coast.”

Mr Raine said, “Although a high speed rail link would go a long way to distributing business activity to Newcastle and Gosford, it would be great if we could see a revival of the proposed 11-kilometre Blue Mountains tunnel (Blackheath to Little Hartley) that was shelved due to high costs.

“Experience has shown that over time, these regional links bypass bottlenecks, open up affordable markets for commercial enterprises, and bring much-needed economic growth to regional hubs,” said Mr Raine.