LIFESTYLE suburbs close to the beach and lake across Newcastle and Lake Macquarie draw a premium price tag.
However, neighbouring 'bridesmaid' suburbs - where buyers look to when priced out of the go-to suburb - can offer significant long-term capital growth prospects and affordability.
A new report from Aus Property Professionals buyer's agent Lloyd Edge reveals the places where neighbouring suburbs have experienced strong growth across Newcastle and Lake Macquarie.
"If a buyer cannot afford their favourite suburb it is likely that buyers will consider a neighbouring suburb as the next best thing," Mr Edge said.
"This is why growth typically ripples outwards.
"To find a 'bridesmaid', look for suburbs that are cheaper than their neighbours as property prices are likely to catch up."
Popular suburb: Merewether, median house price $1.89 million
Alternative: Merewether Heights, median house price $1.43 million
The report included Merewether Heights as one of the top 'bridesmaid' suburbs in Newcastle where houses hold a median price of $1.43 million.
The suburb has seen growth of 21 per cent in the past two years.
"Merewether Heights is an excellent choice if you have been priced out of Merewether where the median house price is $1.89 million," he said.
"You are only minutes away from Merewether Beach and Bar Beach."
Popular suburb: Cameron Park, median house price: $870,000
Alternative: West Wallsend and Holmesville, median house prices $790,000 and $700,000 respectively
West Wallsend and Holmesville ranked as more affordable alternatives to Cameron Park, with savings of around $100,000.
The median house price in West Wallsend is $790,000 and $700,000 in Holmesville, while Cameron Park sits at $870,000.
"Since development began in Cameron Park in 2000, the population has increased in this area and surrounding suburbs making it a very desirable location for young families," he said.
"Cameron Park does have a lot to offer in terms of its livability, with a shopping plaza, skate park and playgrounds but the house prices have also followed with the demand."
Popular suburb: Belmont, median house price $880,000 and Swansea median house price $900,000
Alternative: Belmont South, median house price $758,000
In Lake Macquarie, Belmont South emerged as a more affordable option than neighbouring suburbs such as Swansea and Belmont.
Mr Edge said Belmont South had experienced steady average annual growth of seven per cent to hold a median house price of $758,000.
"This bridesmaid suburb is a much cheaper choice than its 'bride' of Belmont that has a median price of $880,000," he said.
"It is also a much more affordable choice than its neighbour Swansea with a median price just shy of $1 million at $900,000."
Popular suburb: Morisset Park, median house price $1.15 million
Alternative: Balcolyn, median house price $730,000
Balcolyn experienced significant growth in the past two years but still offered good value for those buyers wanting to live near the lake.
"With a current median house price of $730,000, Balcolyn is certainly shooting upwards in popularity since the pandemic," he said.
"Just two years ago, the median house price in this suburb was $560,000 and this median price in 2021 hadn't really moved far from $500,000 since 2017.
"The main reasons for this increase in price is due to the lifestyle options Balcolyn has to offer, as well as its relative affordability compared to its neighbours. "
By comparison, neighbouring suburb Morisset Park, which is the location of the $600 million Trinity Point development, holds a median house price of $1.15 million.
Popular suburb: Fishing Point, median house price $1.090 million
Alternative: Arcadia Value, median house price $717,000
On the western shores of Lake Macquarie, Arcadia Vale was tipped as one to watch with a median house price of $717,000 and eight per cent average price growth in the past 12 months.
By comparison, Arcadia Vale's neighbouring suburb of Fishing Point has a median house price of $1.090 million, with 11 per cent growth over the past 12 months.
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