A significant proposal for an area in New South Wales has been identified as likely to underpin long-term price growth as well as a quick spike in values, according to a number of property experts.
Wyong Shire Council, on New South Wales’ Central Coast, has recently been earmarked for the development of an airport, which real estate group Raine & Horne said is a strong marker of future growth in the area.
At Bushells Ridge, on the border of the Wyong Shire and Lake Macquarie, 900ha has been proposed for the airport.
“Should the project go ahead, residents on the Central Coast are likely to experience a positive reaction in the residential property market, off the back of more convenient access to the region,” Sean Green, Raine & Horne’s operations manager for NSW/QLD/ACT/WA.
“If the Central Coast receives an airport, we are likely to see an overnight jump in house prices across the region,” said Andrew Sorensen, principal of Raine & Horne Charmhaven.
“For example, in Charmhaven, it’s possible to buy a three-bedroom home for around $250,000. While we have enjoyed capital growth of between three per cent and five per cent growth every year since 2004, this could jump to between five per cent and 10 per cent annually if an airport is approved,” said Mr Sorensen.
The proposal plans note that the airport would be able to support Boeing 737 flights to all domestic capitals and to New Zealand, and potentially generate $100 to $200 million a year for the local economy.
Recently, the council also approved a 15.7ha Chinese theme park (construction beginning in 2015).
Smart Property Investment’s latest portfolio addition is a property in the Wyong Shire Council suburb of Berkeley Vale, an area that prior to the proposed development, was already said to be a strong contender for long-term growth.
Property Central’s Ian Boyle told Smart Property Investment, while on site at Berkeley Vale, that a lot of Sydney investors are interested in the region at present.
“Berkeley Vale is seen as a growth area. We’ve got good schools, the beach is only 15 minutes away, great shopping close by and it’s getting excellent rental returns as well. It’s also still very affordable,” Mr Boyle said.
Currently the average median price across the Wyong area sits at $365,500 for houses (RP Data).
Right Property Group’s Steve Waters, who negotiated the deal, said that the area has affordable land and housing options, “and provides that alternative for those squeezed out of Sydney, while also giving a coastal lifestyle rather than the hectic pace of the city.
“This will increasingly be the case as Sydney grows and as the population spreads out,” he said.
Craig Fisher, co-principal of Raine & Horne Killarney Vale and Raine & Horne Toowoon Bay, said that this is of much interest to investors who will be most affected.
“Properties around airports traditionally return strong rental yields because they are convenient for those workers who are on temporary contracts such as FIFO workers,” said Mr Fisher.