Sydney's rising property prices open doors to NSW Central Coast's fringes: HTW
NSW Central Coast was perched at the peak of the market for houses, according to valuation firm Herron Todd White's latest property clock -- a simple broad brush means to suggest where property markets are - and what direction prices are moving in. For units, it was approaching the peak of market.
The April report also discussed the fringes of the Central Coast.
Due to its location just north of the Sydney metropolitan area and the good transport corridor and services between them, some may be calling the Central Coast region a fringe location of Sydney. The people of the Central Coast would of course, object to this reference, say HTW.
When discussing fringe localities on the coast, we can think of those areas on the western side of the M1 Motorway. These are mostly rural areas with generally limited services.
We are finding these areas interesting at present as the rising prices in the Sydney market have opened the symbolic door to these areas with Sydneysiders discovering the good buying to be had. A noticeable level of activity has been seen since mid 2015 and demand is quite good. We have recently looked at more properties in these areas over the past year than we have over the previous five years.
This includes areas such as Calga, Mount White, Peats Ridge and Somersby which are close and handy to the M1 Motorway and Mangrove Mountain, Bucketty and Kulnura being that little bit further out but no less popular. We have seen a renovated dwelling on 16 hectares sell recently for just over $1.7 million. This is towards the upper end of the value range with numerous other properties available closer to or below the $1 million mark. Rental returns are not that great – expect around 3% to 4% - but it must remembered that these are lifestyle properties.
Another thing to remember with these locations is that traditionally, they don’t enjoy the same value increases seen closer in. In fact, it could be argued that they only see rises every second cycle.
As we move further north, renewed interest has been shown within selected parts of the Dooralong and Yarramalong Valley areas. These are beautiful locations and well worth a close look. Another fringe location is Jilliby which adjoins the M1 Motorway.
Strangely enough, Jilliby has been a bit quiet lately and we expect its popularity to be on the rise shortly.
Close to the Gosford CBD but considered by many as being on the fringe are the suburbs of Niagara Park, Narara and Wyoming. As a result of the market increasing, these areas have grown in popularity with a recent purchase seen of a very tidy three-bedroom family home purchased at Narara in the mid $500,000 mark – a very good buy by today’s standards. These are areas that have lacked the popularity enjoyed by the beachside suburbs and as new owners move in and gentrification occurs, they may well prove a smart buy as we move forward. Tip: take a good look at the Wyoming area.
Rental returns in these areas have hovered around the 5 percent to 6 percent mark.
Further north, we think of Chain Valley Bay, Gwandalan and Summerland Point as fringe locations. Popular with retirees and the budget constrained, these areas have also enjoyed the benefit of the rising market and it is our hope they continue to do so. They are great family locations with sound community support and good access to Lake Macquarie. Grab the fishing rod or water skis and inboard - take a look at these ones.
Rental returns for investors are pretty good in these areas at around the 5% mark generally and we think the prospects are also good in terms of values increasing.
Back to the southern end, there are also a number of locations along the coastal strip that have enjoyed continued popularity with Sydney-based owners as their choice of location for weekenders. These areas include MacMasters Beach, Killcare, Hardys Bay, Pretty Beach, Wagstaffe and Pearl Beach. So as not to offend, we are being respectful of these people and will refer to these areas as quaint or out of the way suburbs, rather than fringe locations.
Whatever the term, they fit the criteria inasmuch that they are away from the hustle and bustle of the busy Central Coast life with privacy, plenty of trees, a beach close by and a good café - de rigueur to entice investment here. Imaginative house name plates or faux rustic signs abound in these locations with The Shack and Beach House popular choices and others reminiscent of European resort spots often attached to them.
Mind your step though and think big values, not so big returns (excluding holiday rentals) and values fluctuating according to economic sentiment rather than traditional supply and demand for these areas – it’s about quality, refinement and having friends around in these locations.
Property Observer looked up a few properties in the fringe suburb of Wyoming on realestate.com.au. The median price of houses in Wyoming was $480,000 for houses and $385,800 for units, according to CoreLogic RP Data.
A four-bedroom house with parking for three cars at 36 Rain Forest Road Wyoming NSW 2250 (below) sold recently for $475,000.
A two-bedroom house at 21 Kinarra Avenue Wyoming NSW 2250 (below and lead image) sold for $395,000.
