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17/09/19

100% SETTLEMENT ON CENTRAL COAST BUCKS NATIONAL TREND

Property developer, Central Real, has reported 100% settlement success on all three of its Central Coast properties delivered to date this year, highlighting the continuing growth of regional markets compared to metro developments.

The value of Central Coast apartments is tipped to see an 8.8% improvement this year, and another 13.2% in 2020 based on the 2019 Moody’s Analytics forecast with CoreLogic, forecasting regional coastal areas like the Central Coast as the safe bet in a recovering market.

Real Estate agent, John McGrath, says it’s a testament to the growth still happening in regional locations like the Central Coast which have only just started to see its potential in property development and investment.

“With the amount of private and government investment in the revitalization plans of Gosford city, including major infrastructure such as the $350million private hospital, $250million University precinct in Gosford and a state of the art Medical Research Facility all happening concurrently, any investor with sense follows the sound of money being dropped. That’s what happening on the Central Coast. The demand, if anything, is definitely growing for property in this region.”

Local property developer on the Central Coast, Central Real, said their success for its three recent projects delivered to date for 2019 is mostly due to the high-end quality of the product being delivered.

“We have settled every apartment of our three completed projects this year. That’s over 120 apartments, many of our valuations have seen an average 10.8% uplift,” Central Real CEO, Richard Ellis, said.

“We haven’t had the fallout like Sydney or Melbourne and nowhere near the level of financial concerns from purchasers when it came time to settle into their new homes, I believe the level of building quality and execution of finishes has a lot to do with it.”

“The value of new apartments is growing on the Central Coast. In fact, we’ve actually brought forward the launch of developments just to meet the demand for buyers in the market.”

Nick West recently moved into his brand-new apartment on Kendall Street in West Gosford and said the valuations on his Central Coast property were more than ideal.

“I purchased off the plan a couple years ago, so I was a little unsure heading into the settlement and getting it valued this year however everything was absolutely fine. I don’t think you could ever lose out buying in a place like the coast, with water views like we have and the level of finishes our local developer has put into the building,” Mr West said.

The Central Coast seems a safe bet for investors also, maintaining a steady 4.5% – 5% yield for purchasers who rent their apartments. Jaimie Woodcock from McGrath real Estate said the Central Coast still maintains a low vacancy rate around 2% compared to other areas of NSW.

“The vacancy rate is low; the returns are good. With credit pressures easing and investors returning to market, purchasers will likely look to safer bets like the Central Coast where growth and investment is happening,” Mr Woodcock said.

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