NSW’s Central Coast has seen some considerable property price growth since the start of the pandemic as Aussies rushed to secure a decent family home for the price of a tight Sydney apartment, but has this region reached its peak?
The Central Coast has attracted a rising number of buyers from Sydney with its affordability, appealing lifestyle and improved infrastructure, but while the region has had a strong run over recent months, this could now be a thing of the past as sales plateau.
According to Right Property Group’s Steve Waters, “We’ve seen the peak rate of growth.”
“We’ll start to see a more shallow rate of growth. The growth will still be there, but just not the 9 per cent per quarter growth,” Mr Waters said on a recent episode of The Smart Property Investment Show.
But this might not necessarily be a bad thing.
“We want more sustainable growth patterns rather than very lumpy, because what goes up quickly needs to contract and get somewhere back to its averages,” Mr Waters said.
He opined that the Central Coast will maintain its appeal due to its close proximity to both Sydney and the Hunter Region, as well as the diversity it offers in regards to property types, localities and price brackets.
“So, there’s elements of affordability throughout and then you can go to the top end and spend multimillions of dollars as well, and I think it appeals to everybody,” Mr Waters said.
The Central Coast was a major driver of auction clearance rates in the first quarter of this year, with CoreLogic reporting a combined capital city rate of over 80 per cent.
As reported by CoreLogic in April, lifestyle markets topped the auction ladder in the first three months of the year, with the Central Coast clocking a mammoth 86.7 per cent clearance rate.
It was also among the regions that saw the biggest year-on-year clearance rate increase of 46.2 per cent.
But it appears the industrial market, too, is peaking on the Coast, with recent research from Raine and Horne reporting that with the impact of COVID on supply chains, local companies are sourcing components here in Australia rather than overseas, which is forcing smaller, local manufacturers to expand their operations.
“With more people moving to the Central Coast, companies based in Sydney may consider opening satellite offices in Gosford, Erina, Tuggerah and Wyong, which is on the train line,” said Raine and Horne Commercial Central Coast principal Brad Rogers said.
“At the end of the day, having sufficient industrial land means more jobs for the Central Coast,” he acknowledged.
And that is essentially what the Central Coast needs more of.
“It is its own economy and it’s also close enough to the Sydney Region and even the Hunter Region as well. So, it’s kind of a three economy effect,” Mr Waters said.
For more on the Central Coast, listen to this podcast: