The Sydney property market is increasingly falling out of favour with savvy investors due to high property prices, lack of growth potential and falling rental yields. As a result, investors are looking further afield to find a great investment, like the Central Coast.
The Central Coast is holding increasing appeal to Sydney investors due to a multitude of reasons including: it’s just over an hour-and-a-half to the Sydney CBD, has a large transport network, strong rental track record and high-quality housing at more affordable prices.
In addition, apartment prices in the Central Coast have risen steadily over the past 12 months showcasing the return on investment for the area. A two-bedroom new apartment could be purchased in September 2016 for $482,000, while 12 months later a similar apartment has risen to $598,000. These numbers indicate a significant market increase this year alone, with no signs of slowing down.
Here are the top reasons why Central Coast is a hotspot for investors:
As a growing market, the Central Coast is more affordable than the Sydney CBD for investors and has a variety of housing types to choose from. In particular new apartment blocks are being developed with similar waterside aspects to homes in Bondi or but are being sold for less than half the price. This is particularly attractive to renters on Sydney’s North Shore who are priced out of the market but are still looking for a coastal lifestyle.
High rental demand
The Central Coast is attractive for renters due its relaxed beachside lifestyle and abundance of amenities such as quality schools, shopping centres, sporting facilities, cafes and more.
There are also a number of employment opportunities drawing renters to the area such as the $368 million upgrade to the Gosford Hospital that is expected to create 1,000 new jobs. In addition, the government is relocating the Australian Taxation Office to the Central Coast, which will provide over 600 new jobs.
The Central Coast is well connected with a variety of transport options including trains, buses and ferries. You can even catch a ferry fromto Ettalong in 30 minutes.
With easy access to the M1 motorway, it’s just over an hour drive to the Sydney CBD, and even quicker to Newcastle. The NSW government’s proposed NorthConnex motorway is also set to link Kariong to Sydney in a journey that will have no traffic lights.
The Australian state and federal governments are spending $1 billion on infrastructure in and around Gosford by 2020, which will significantly enhance its appeal and connectivity. This includes the Gosford City Centre Masterplan that identifies five major city precincts set for an exciting revitalisation. The upgrades will allow for the provision of 40,000 new dwellings and the creation of 30,750 jobs in the next 15 years.
With a strong pipeline of growth and development for the Central Coast, there are a range of opportunities for investors to capitalise on the rising market.