Central Coast property market update with top suburbs for buyers and investors

The Central Coast property market remains a hot topic. Are we in decline? When is the right time to buy? Two experts share their thoughts and reveal the top suburbs for buyers and investors.

Mixed messages are being spread when it comes to the current property market, begging questions such as “is it a good time to buy?” and “should we hold off for the market to drop?”

The last two years has seen a once-in-a-lifetime boom across the Central Coast leaving many asking how we are currently tracking as interest rates continue to rise.

Aus Property Professionals founder and managing director Lloyd Edge has described the Central Coast market as in decline and revealed standout suburbs for buyers and investors including Gorokan and Wyong.

“Currently, the Central Coast market is in a decline, as we’re coming to the end of a boom cycle,” Mr Edge told the Express.

Aus Property Professionals director Lloyd Edge has identified Wyong and Gorokan as standout suburbs for buyers.

Belle Property Central Coast principal Cathy Baker says the market is not in decline.

“The market saw a 40 per cent growth overall during the pandemic, and now rising interest rates are causing property prices to drop. However, from mid-next year onwards, when the interest rate situation calms down, we should see another boom cycle begin for the Central Coast.”

However Belle Property Central Coast principal Cathy Baker disagrees that the market is in decline.

“We’re not seeing a decline in prices, it’s just a little bit slower and there are less buyers,” she said.

“It’s definitely a changing market, there’s been a lot of uncertainty due to interest rates, the election and media around the building industry.

“A lot of growth and the boom we had was around holiday homes. At this time of year people don’t tend to be as active in that area.

“The sales we are making are in line with property prices, within the 10 per cent range.”

Ms Baker recently sold 5 Bulkara Street, Wagstaffe for an undisclosed price.

Ms Baker said she hadn’t seen people doing fire sales or prices taking a “big hit”.

“We are still ahead of 2020 prices,” she said.

She said there would always be a bit of a correction after the last two year boom.

“Properties need to priced to the market. Agents need to be skilful to align the properties to reflect a realistic price range,” she said.

Ms Baker said waterfront sales remained strong despite less buyers.

“We are still looking at places for $10m plus. We still have a steady stream of investors qualified to buy,” she said.

“The coast is still being looked at favourably for investors looking for dual-living purpose to have a foothold here and in Sydney.

“It’s a good time to buy. There’s a good selection and you are able to do your due diligence around what value for money is. It’s just a case that it’s always changing, we just need to align with it.”

18 North Avoca Parade in North Avoca has also recently been sold by Belle Property Central Coast.

Mr Edge, who has released a new book Buy Now: The Ultimate Guide to Owning and Investing in Property has given his analysis of the Central Coast property market and what suburbs are ideal for buyers and investors.

He said the Central Coast market had remained strong for a number of years.

“For Sydneysiders looking for a sea change, the Central Coast provides the lifestyle they’re looking for while still be close enough to commute to Sydney if necessary,” he said.

“With lower price points than Sydney properties, it’s also great for first home buyers and investors looking for positive cashflow and growth opportunities.”

TOP PICKS FOR BUYERS AND INVESTORS

“The suburbs that standout are Gorokan and Wyong,” Mr Edge said.

“There’s been a huge demand for property in these areas recently, with 40 per cent growth during the pandemic property boom, so they definitely make for strong investment opportunities.

“Gosford and Budgewoi are two more suburbs with a good average price point and lots of growth potential and demand for property.

Gosford has been highlighted with good price points and future growth.

“Charmhaven has also seen 25 per cent growth in property over the last 12 months, and Lake Haven and Lake Munmorah are two great options for people looking to live or invest close to the water.

“As an investor, I would focus on suburbs with lower average price points and higher rental yields, as it’s necessary to ensure that you have a cashflow buffer to mitigate against the risk of rising interest rates.”

THE ‘SEA CHANGE TREND’

Terrigal and North Avoca have had strong population growth.

“Terrigal, North Avoca are seeing the strongest population growth, with the population increasing by about 10 per cent in the last five years,” Mr Edge said.

“The populations of Woy Woy, Umina Beach and Budgewoi have also experienced steady growth.

“Prior to 2020 lots of Sydneysiders seeking a different lifestyle were already starting to make the transition to the Central Coast, and I’m sure we will continue to see the sea change trend grow post-pandemic as well.

“However, the market will slow down due to rising interest rates, and we’re already seeing the impact of interest rate hikes on declining property prices. In a year or so, when the interest rates situation evens out, then I think we’ll see another boom cycle start to kick-off.”

Mr Edge said he recommended the coast to clients due to “lower price points than property in major capital cities, strong growth potential, good rental yields, and close proximity to Sydney, Newcastle, and the M1”.