Central Coast region set for solid growth

“The Central Coast has delivered consistently strong population growth over the past five years, especially as the affordability of its properties (relative to the rest of the Sydney market) has been a major pull factor,” said RiskWise CEO Doron Peleg.

“We expect this growth trajectory to continue, especially as the growing ageing population and Baby Boomers seek to move to coastal properties.”

Mr Peleg said that a location of 80 kilometres north of metropolitan Sydney meant the area was accessible for those who wish for a coastal lifestyle and a comparably affordable median house price of $678,000, as opposed to over $1.1 million.

Over the last 12 months, RiskWise research showed the capital growth of houses growing by 12.62 per cent and for units by 12.07 per cent.

However, Mr Peleg saw the unit market as more of a risky proposition, with rising supply and falling demand.

“The median unit price is $531,000, which is also very affordable relative to Sydney, with a median unit price of $775,000,” Mr Peleg said.

“There was strong growth for units in the Central Coast over the past five years largely due to an increasing number of people seeking affordable areas to reside due to significant price growth across the inner Sydney property market.”

When looking to invest in the Central Coast, houses are an overall safe bet, while units should be looked at in more desirable areas lacking in supply in order to secure capital growth.

Median rents have also been trending more favourably than Sydney’s, with housing seeing 3.9 per cent and units seeing 4.4 per cent.

The impact of incoming units and houses, which currently stand at 3,614 new units and over 900 housing building approvals, is likely to be lessened due to the rising population growth. Capital growth and rental returns, however, could be reduced in the short to medium term.

The NSW state government’s budget last year saw no funding allocated for new projects in the area, but Mr Peleg said that there are already plans in place, outlined in the Central Coast Regional Plan 2036, which places emphasis on the northern and southern growth corridors by enhancing economic development, residential growth and investment.

“All these will also go towards boosting the population growth in the region and therefore capital growth,” Mr Peleg said.