Central Coast the only Sydney region forecasted for positive growth
AS Sydney prices continue to soften across the board, there is one spot just 90 minutes from the CBD that is set to boom.
THE Central Coast property market continues to speed ahead, as new data reveals it is the only Sydney region forecast for positive growth.
According to Moodys Analytics, based on CoreLogic’s Hedonic Home Value Index, the Central Coast is the only area poised to see growth in the residential property market for both 2018 and 2019.
The data also predicts a divergent national market, with declines in the biggest markets of Melbourne and Sydney.
The Coast is categorised in the survey as a region of Greater Sydney, and it’s the only area to avoid a dismal drop in home value forecasts.
The report indicates that by 2019 Central Coast houses will experience an increase in value of 8.5 per cent, with apartments forecast to do even better at 12.4 per cent.
Millionaire developer Tony Denny, who has spearheaded six Central Coast apartment developments over the past couple of years, said he believed there was still a shortage of quality apartments and houses on the Coast.
He is so invested in the area that he has spent almost half a billion dollars building up his portfolio — and he doesn’t see it ending soon.
“I do believe there will be continued growth on the Central Coast because of those factors,” he said.
“But the Central Coast has never really had big highs and lows – it’s been consistent and just appreciates gradually, which is a nice conservative way to experience capital growth.
“I think it will continue this way. But if the Coast can achieve that 3-7 per cent growth in areas like Terrigal then wow – that would be phenomenal.”
Sydney’s Eastern Suburbs are looking particularly bad, according to the new data, with a drop of 4.6 per cent predicted for this year and a further fall of 5.3 per cent for 2019.
As a whole, Sydney is forecasted to decline nearly 5 per cent in 2018 before a recovery in 2019. However, apartment values in Sydney are likely to retain their value and gain 0.6 per cent in 2018, thanks in part to healthy demand.
But Mr Denny said Sydney and the Central Coast were incomparable.
“The quality of the lifestyle up here is unparalleled, and more and more people are understanding that and moving up here from Sydney,” he said.
“When they come here, the wow factor bowls them over. Then they tell their friends and there is this tsunami of people coming up.
“A lot of the price appreciation in Sydney historically has been driven by immigration, which shows no signs of letting up. So I think it’s just a small correction, and I think that it’s healthy.
“The correction has not flowed onto the Central Coast, which is great, but I think Sydney will get some stability back in the next 12 months.”
Adding to the positive mix is the State Government’s plans for Gosford’s revitalisation, a prospect about which Mr Denny said he was “incredibly excited”.
“I haven’t been here in the last 20 years when dozens of promises were lost, and I can understand the cynicism of some people out there, but I believe that these plans are different.
“Given that Sydney is expanding, it has to go somewhere.
“I’m really optimistic, really positive.”
JESS VERRENDER Central Coast Gosford Express Advocate July 19, 2018 10:00am