Strata RetailE2 Commercial CentreVacantLease not yet executed
Lot 9, 456 Hunter Street, Newcastle NSW 2300
$660,000
Negotiated · Going concern (GST-free) · Newcastle · NSW
$40,000 net income · 6.06% net yield · 6.06% effective after outgoings
Net yield
6.06%
Before landlord outgoings
Effective yield
6.06%
After $9,994 outgoings
WALE
5 yrs
2 years
Projected yield by year 6
7.20%
On original price · 3.5% projected, not contracted
01
Property
| Address | Lot 9, 456 Hunter Street, Newcastle NSW 2300 |
| Property type | Strata Retail |
| Title | Strata |
| Zoning | E2 Commercial Centre — (Newcastle LEP 2012) |
| Floor area | Confirmed 108 sqm |
| Building | Civic Chambers |
What we like
- Central location to the university and public transport
- Has a lease offer from a government body (immigration department), lease would be 5x5
- Lease would commence at 40k and increase annually via CPI, or a confirmed figure whichever is greater
- Movement on purchase price to achieve the gross yield required of 6.3%
Key risks
- Dated interiors, likely needs a repaint/steam clean for a new incoming tenant Pending lease renewal which will be a condition of the contract.
02
Tenant & lease
| Tenancy status | Vacant |
| Lease executed | Critical No — commences at settlement |
| Initial term | 5 years |
| Option | 2 years |
| Rent reviews | CPI |
| Outgoings | Recoverable from the tenant |
| Net rent, year 1 | Estimated $40,000 |
Projected rent escalation
| Lease year | Net rent p.a. | Yield on price | Note |
|---|---|---|---|
| Year 1 | $40,000 | 6.06% | Commencing rent |
| Year 2 | $41,400 | 6.27% | +3.5% |
| Year 3 | $42,849 | 6.49% | +3.5% |
| Year 4 | $44,349 | 6.72% | +3.5% |
| Year 5 | $45,901 | 6.95% | +3.5% |
| Year 6 | $47,507 | 7.20% | Option period |
03
Cashflow
A live, pre-tax cash position. Change any input and every line recalculates. No tax offsets, no depreciation, no capital growth — cash in, cash out.
Capital required
Purchase price
$660,000
Loan at 67% LVR
$442,200
Deposit
$217,800
Acquisition costsStamp duty, legals, strata & building reports, valuation
$10,000
Total cash required
$227,800
Annual cash position — year 1
Net rental income
$40,000
Less landlord outgoings
−$0
Less land tax
−$0
Income after outgoings
$40,000
Less loan interest at 7.69%Interest only
−$34,005
Pre-tax cash position
$5,995
Cash-on-cash returnPre-tax cash ÷ total cash required
2.63%
Cash position over the lease term
| Year | Net rent | Outgoings | Interest | Pre-tax cash |
|---|---|---|---|---|
| Year 1 | $40,000 | $0 | $34,005 | $5,995 |
| Year 2 | $41,400 | $0 | $34,005 | $7,395 |
| Year 3 | $42,849 | $0 | $34,005 | $8,844 |
| Year 4 | $44,349 | $0 | $34,005 | $10,344 |
| Year 5 | $45,901 | $0 | $34,005 | $11,896 |
| Year 6 | $47,507 | $0 | $34,005 | $13,502 |
What this model deliberately excludes
No tax offsets, no depreciation, no capital growth, no incentive amortisation. Commercial lending typically sits at 60–70% LVR on shorter terms than residential, and an SMSF limited recourse borrowing arrangement carries additional structural requirements. Confirm your actual rate, term and LVR with a broker before relying on any figure here.04
Price analysis
Price positioning — $ per sqm against comparable evidence
| Metric | Value | Assessment |
|---|---|---|
| Purchase price | $660,000 | Negotiated |
| Floor area | 108 sqm | Confirmed |
| Price per sqm | $6,111 | See positioning above |
| Rent per sqm | $370 | Net income ÷ floor area |
| Net yield | 6.06% | — |
| Effective yield | 6.06% | After landlord outgoings |
05
Comparables
Sales evidence
| Comparable | Basis | Amount | $/sqm | Tenure | vs subject |
|---|---|---|---|---|---|
| 1/283 Hunter Street, Newcastle NSW 2300 | Sold · 2026 | $341,000 | $4,372 | Vacant | Slightly Inferior THE ANCHOR COMPARABLE - the only Newcastle CBD strata retail sale in the last 12 months with a disclosed price. $4,372/sqm. Closest match on internal layout: a single ground-floor strata retail lot with a high-exposure shopfront, sold with vacant possession - the same product as Lot 9 (vacant, glass shopfront, ground floor, single tenancy). Same street as the subject, sitting further east toward the Crown Street light rail stop vs the subject's Civic stop, and like Lot 9 it was marketed on immediate light rail proximity. Rated slightly inferior on size (78sqm vs 108sqm) and for lacking the subject's NUspace / Law Courts daytime catchment. Against the subject's $775,000 asking ($7,176/sqm), this sale sits 64% below on a rate-per-metre basis. Price and date confirmed on the Ray White Newcastle sold record. |
| Shops 15 & 16, 200-212 Hunter Street, Newcastle NSW 2300 | Sold · 2026 | $1,210,000 | $6,471 | Vacant | Superior Most recent CBD strata retail sale and the best layout/proximity match after 1/283. Same street as the subject, at the eastern end near Queens Wharf (listing cites King St at Perkins St 135m, Queens Wharf 142-171m). Layout is directly comparable - boutique ground-floor retail/office suite - but rated superior for dual street frontage, larger 187sqm across two contiguous lots that can be separated, and position adjacent the Newcastle Mall redevelopment. PRICE UNDISCLOSED. Action: this was sold by Colliers Newcastle (Michael and Hilary Chapman), the same agents acting on Lot 9, so the price is a fair thing to request directly at first contact. |
06
Location
Subject site
400m · 800m · 1.6km radius
Coordinates -32.926899, 151.771032 — Esri World Geocoding Service for 456 Hunter Street, Newcastle NSW 2300 (PointAddress, score 100), cross-checked against the commercialrealestate.com.au listing map for 456 Hunter Street (-32.926886, 151.771049) - the two agree within ~2m. Street-address point, not the strata lot centroid.. Basemap © OpenStreetMap contributors; imagery © Esri. Radius rings are straight-line, not drive-time.
| Transport | Exceptional public transport exposure. The Civic light rail stop sits directly in front of NUspace, immediately opposite the property — effectively at the door. Newcastle Light Rail runs six stops between Newcastle Interchange and Newcastle Beach along Hunter and Scott Streets, on a turn-up-and-go basis from 5am to 1am seven days, at roughly 7-8 minute intervals through weekday peaks and interpeak and 15 minutes weekends and shoulder periods. Newcastle Interchange (Wickham), two stops west, provides heavy-rail connections on the Hunter Line toward Maitland and Sydney plus regional coach services. Buses: the listing records multiple bus stops within about 211m, with the King Street / University House stop approximately 143-169m away. The Stockton-Queens Wharf ferry departs from Queens Wharf, two light rail stops east. Car parking is not specified for this lot — recommend confirming whether any car space forms part of the strata entitlement, and assessing nearby public and paid parking, as CBD Hunter Street frontages typically rely on it. |
| Local amenity | Core Newcastle CBD position on Hunter Street, the city's principal retail and commercial thoroughfare. The immediate Civic precinct offers Newcastle City Hall, the Civic Theatre, Newcastle Museum and Civic Park, all directly accessible from the adjacent light rail stop. The Honeysuckle waterfront dining and hospitality precinct is a short walk north (cited in the listing as close by), and the Darby Street cafe and boutique retail strip plus the Hunter Street Mall are within the wider CBD walk. Hunter Street has been through a sustained revitalisation since the Renew Newcastle program — independent galleries, niche retail, coffee shops and small bars have proliferated, particularly east of City Hall. The most material demand driver for a ground-floor tenancy here is the footfall generated by the University of Newcastle's NUspace city campus directly opposite, with the Newcastle Law Courts within roughly 200m — a strong daytime catchment of students, staff and professional services. |
| Region | Newcastle · NSW · Newcastle LGA |
| Flood | Not Found |
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Disclaimer
This report is general information only and does not take into account your objectives, financial situation or needs. It is not financial, legal, taxation or investment advice. Handle Properties, its directors, employees and associated entities accept no liability for any action taken in reliance on this document. Figures marked Estimated or Comparable lot are derived from comparable evidence and figures marked TBC are unresolved due diligence items; both are subject to change. Yields, cashflows and projections are indicative, are not forecasts, and assume the lease is executed on the terms described. Interest rates, land tax and acquisition costs are assumptions you should replace with your own. Obtain independent legal, financial, taxation and lending advice before proceeding. Comparable evidence and past performance are not indicators of future performance.