Central Coast real estate: Best suburbs to invest in 2021

Twelve Cental Coast suburbs have been flagged in the list of NSW’s top 50 suburbs to invest in 2021. See where savvy investors are buying.

For many house hunters and investors across the Central Coast, the current once-in-a-life-time market boom has left heads spinning.

Prices are going up and up by the week, driven by interest from Sydney, the Covid pandemic and demand for holiday homes close to the beach.

However there are pockets where budding property investors can still cash in on rising prices.

A study powered with realestate.com.au price and rental data has revealed the top NSW markets for investors with 12 suburbs flagged from the Central Coast when it came to larger sales volumes.

Umina Beach came out on top of the region, and 10th in the state, with investors flocking to the suburb which had 292 sales in the year leading up to June 2021 and a 10-year growth rate in median house prices of 124.9 per cent.

This was followed by Bateau Bay with 204 sales, Terrigal with 201 sales and Gorokan with 190 sales.

The burst of units for sale and set for development in Gosford was also highlighted, with 199

sales over the past year showing investor confidence as cranes continue to go up in the city.

292 houses were sold in Umina Beach in the year leading to June 2021.

Investor confidence has been highlighted in Gosford, with 199 unit sales over the past year. Picture: Sue Graham

Other coast suburbs to feature in the top 50 for investors include Berkeley Vale, Wyoming, Killarney Vale, Woy Woy, The Entrance (units), Wamberal and Narara.

The data also looked at rising demand from tenants, price increases over the past 10 and 20 years as well as rental yields which signalled it was easier to find properties where the rents covered most, if not all, of investors’ mortgage costs.

When it came rental yield on houses, the coast took out 16 of the top 20 spots with Blue Haven, Watanobbi, Wadalba, Hamlyn Terrace and San Remo in the top five.

These outer areas are more affordable, however have received a lot of interest during the current market with buyers getting more for their money.

A deeper look into the data revealed Ettalong Beach recording the state’s second highest growth in median house prices over the past 10 years. The beachside suburb recorded 167.1 per cent growth, with Macmasters Beach close behind with 160 per cent while Saratoga recorded 149 per cent growth in house prices.

Saratoga also came out on top when it came to growth in rental demand, recording the state’s second highest growth of 35.2 per cent over the past year. This is an area also recording huge increases in house prices due to being close to the water.

Central Coast leading agent Brian Whiteman, from The Agency, said the Central Coast’s representation in the top 50 places to invest in 2021 was not surprising.

“It’s not a surprise from how we have seen things grow and the connection with Sydney being so close with NorthConnex,” he said.

Brian Whiteman from The Agency.

“In terms of Covid, it has just pushed the market north for us. Out investor market is still very strong. The coast has also become holiday home buyers galore, people in Sydney are climbing the walls and are looking for their retreat by the beachside. The next three years also looks grim im terms of travel.”

He said the holiday home buyers, which fit into the investor category, were looking at benefits of long term growth, negative gearing and taxability.

A home in Trelawney St Killarney Vale broke a record, selling for $1,785,000.

Mr Whiteman said some of the suburbs such as Killarney Vale, Bateau Bay and Berkeley Vale had set some amazing records recently, breaking records by up to $800,000.

He said inclusion of outer suburbs such as Wyoming and Gorokan in the top 50 investor list showed the great value offered in those suburbs.

“When people can’t afford an area, they look further afield. Some of those outer suburbs offer great value and we are seeing some great pricing,” he said.

He said the boom was showing no signs of slowing down for at least the next six months.

“It’s just creating more wealth locally, it’s fantastic,” he said.

“In the long term, we will be the lucky cousins of Sydney.”