Median house prices on the Central Coast continue to grow steadily, with more surges in sales and rental pricing expected over the next 12 months, a new report has found.
The Market Pressure Review Report by data-driven buyer’s agency InvestorKit reveals an 18.4 per cent increase in median house prices in Gosford, and a 16.7 per cent increase in Wyong since September, 2020.
Despite a decline in the number of new listings, monthly sales volumes continue to grow and rentals are also seeing higher demand in the region.
The report analysed eight regions along the NSW coast including: Gosford, Wyong, Lake Macquarie – East, Newcastle, Port Stephens, Port Macquarie, Coffs Harbour, and Richmond Valley – Coastal.
It used pressure indicators to demonstrate changes in sales, rental prices and stock levels.
Market pressure indicators refer to median price, sale days on the market, monthly listings, monthly sale volume, vendor discounting, vacancy rates, rents and yields.
The higher the market pressure, the greater the short-term capital growth and rental price growth.
With total monthly listings declining 38 per cent over the 12 months to the end of July 2021, the number of days a property has been on the market has also fallen significantly, the report found.
Monthly sales volumes continued to grow across the eight regions, with Gosford (31.3 per cent) and Wyong (25.3 per cent) the best performers.
During early 2021, Wyong saw a rise in median rents due to market pressure and with a very low vacancy rate the area is facing a rental crisis, the report found.
InvestorKit founder, Arjun Paliwal, said property market pressure for the NSW northern coastal markets is currently some of the highest in the country.
“(This is) good news for those already in the market but problematic for prospective buyers due to the extremely high competition,” he said.
“Similar to the sales market, rental data in the NSW North Coast is reflecting similar intense market pressures.
“Among those renting, we can expect to see a surge in rental pricing and demand, which is already sitting at crisis levels.
“However, investors can expect a healthy gross rental yield for most of the coastal cities of around four per cent, but this will fall closer to the major hubs of Sydney.
“There are many factors contributing to this market pressure, including historically low cash rates, greater access to credit and owner-occupier finance take up, localised job market strengths and recovery, government spending/stimulus, higher household savings ratios, flexibility of working from home, years of low investor activity reducing supply, and changing lifestyle preferences.
“We expect that market pressure over the next 12 months will remain intense, sales and rental pricing will continue to surge, and the north coast regions will continue to outperform our capital cities over 2022.”
Media release, Oct 6