Gosford Property Watch Q3 2014
The region sits within NSWs Central Coast and is located approximately 70 kilometers north of the Sydney CBD and 90km south of Newcastle and is easily accessible thanks to proximity to the Pacific Motorway as well a train line with regular north/south services.
The area is popular with families, retirees and holiday makers due to the excellent mix of lifestyle and convenience on offer, as such properties in the are predominately consist of large family homes and beachside units. This Property Watch report will aim to further highlight the regions characteristics, analyse the market and forecast the future trends of the Gosford residential market.
The Gosford property market has been in a phase of recovery since 2012 which provides a good indication of growth moving forward. In the annual period to March 2014 the region recorded 3,372 transactions which represents an annual increase of 19.7 per cent while Median prices have also shown a strong rise of 13.5 per cent over the same period. Over 10 years median prices have increased at 2 per cent per annum.
The unit market is also showing positive signs after years of subdued growth with an increase in transactional activity of 19.1 per cent and an increase in median value of 8.4 per cent in since March 2013.
This pattern of growth is expected to continue thanks to a combination of infrastructure investment, regional policy changes and a predicted increase in population.
The Gosford price point chart indicates the shifts in house prices across the area over the past five years. Overall the lower price points are shrinking, the middle of the market is remaining relatively level while the higher end of the market is increasing in popularity.
The price point that dropped the most in activity over the 5 years was the $350,000 and below range which dropped 18 per cent since 2010. This is due to affordable stock rising in value after increases in demand from investors and changeover buyers which has resulted in properties being pushed into higher price points.
The price point that increased the most was the $650,000 and above range which over five years has grown a positive 6 per cent. All of the other mid to high range price points also reported growth however at a lower rate.
The metro Gosford rental market, similar to the Gosford's median sales prices, has recorded strong growth recently. As at March 2014 median rents registered $365 per week which is a rise 3.7 per cent over the previous year.
The strongest growth can be found in the four plus bedroom market which increased by 9.1 per cent since March 2013. It is believed the four bedroom market has grown thanks to an increase in families moving into the area and limited supply.
The rental data currently indicates an approximate yield of 4.4 per cent which is typical of the central coast. The mix of reasonable yield and high capital growth prospects should make it a solid investment particularly over the medium to long term.
Gosford is already a well established region however there is continual investment in new projects which help fuel continual growth moving forward. Currently there is over $2.3 billion worth of development in the pipeline with a healthy mix of public infrastructure, commercial, industrial and residential developments planned or recently completed.
Highlights include The Gosford Challenge which is a master plan to redevelop central Gosfords Waterfront into a diverse and dynamic mixed use precinct comprising of a range of residential, commercial, retail, education, entertainment, civic, community, recreational, tourist and entertainment uses. This should see hundreds of new jobs for the area and help with overall increases in regional property values.