McGrath sees continued strength in NSW Central Coast property market

McGrath is seeing continued strength in the NSW Central Coast property market, as Sydneysiders hone in on lifestyle and value.

As Sydney is experiencing a plateauing of its property market, McGrath Central Coast has conversely reported continued strong demand and results.

McGrath Terrigal Principal Mat Steinwede said the Central Coast has not experienced the same slowdown as Sydney and remains a very compelling and affordable market for lifestyle and investment.

“The Central Coast is now more than ever viewed as an extension of Sydney, with new infrastructure such as the NorthConnex and many new high-quality residential developments, ensuring ongoing interest and investment from both local and out-of-area buyers.”

Steinwede said the prestige market was particularly strong, with an upsurge in high-end sales instilling confidence in the local property market.

“Buyer sentiment has been very positive with local buyer movement in the high-end sector a growing trend. We are seeing more locals upsizing to larger properties or better locations, with the time it takes to sell shorter as the buyer pool becomes more diverse. This is particularly strong in the $2m – $3m price bracket.”

Steinwede said he recently sold a luxury home in Matcham for $2.050M to a local family who were upgrading from a $1m property in Wamberal.

According to Mr Steinwede, in the past three months approximately 52% of buyers who purchased a $1m – $1.5m property from McGrath Central Coast were from Sydney and 75 per cent of buyers who purchased property at $1.5m or above were from Sydney or other regional areas.

“We have also noted an increase in Sydneysiders purchasing penthouses in Terrigal, Gosford and Point Frederick for investment now with a view to living there in retirement. These buyers recognise that they can buy a luxurious home at a significantly lower price point than they could in Sydney. And with properties continuing to increase in value and deliver solid rental yields, they feel that now is the time to invest in the Central Coast,” said Steinwede.

In 2017, a penthouse in Gosford with views of Brisbane Waters become the first apartment in the suburb to sell above $1m, selling off-the-plan for $1.6m, with the buyer reportedly from Sydney’s northern beaches.

Steinwede also noted that more young couples and professionals were turning to the Central Coast.

“While Sydney first home buyers moving to the coast to get a foothold in the property market is not new, we are seeing more young couples and professionals testing the waters and renting on the coast before making the decision to buy. They are often willing to pay a premium for a quality rental property, as the value proposition is still considerable when compared to Sydney.

“Gosford and its surrounds are particularly popular due to its access to public transport and the M1 motorway to Sydney. Investment on infrastructure including the Gosford Hospital refurbishment and the new ATO building, which is expected to employ up to 600 workers, is also driving demand. The local rental market for apartments as a result is very strong with yields on average above 4 per cent.” 

Commenting on his outlook for the remainder of 2018, Steinwede said, “I believe the Central Coast is well positioned for steady ongoing growth. Our enviable lifestyle, access to Sydney and relative affordability will continue to drive demand in the area.”