Postcodes 2264 and 2265 Research Factsheet 2nd Half 2018
The property market of postcodes 2264 and 2265 has strengthened over the past 12 months to Q3 2018, by 6.4% to $593,000 for houses and by 8.2% to $397,500. The Lake Macquarie Local Government Area (LGA) recorded a median house price of $570,000 and median unit price of $450,000, which is representative of an annual (Q3 2017-Q3 2018) 1.0% strengthening in median house prices and a stable unit market. Compared to the Lake Macquarie City Council (LGA) the house market in postcodes 2264 and 2265 are a premium market, from both entry price and capital growth perspectives. The unit market is more affordable, yet with higher capital growth.
Median rent has increased over the past 12 months by 20.0% for units, currently at $360 per week in Q3 2018. This is in combination with a 46.7% increase in the number of units rented, which suggests the need for more unit rental stock.
Strong rental yields have been recorded in postcodes 2264 and 2265, currently at 3.7% (house) and 4.6% (units) as of June 2018, much higher than Sydney Metro at 2.7% and 3.7%, respectively. Combined with downward trending vacancies rates from 2.9% (June 2017) to 2.7% (June 2018), the market continues to present itself as a highly more affordable alternate desirable location for investment compared to Sydney Metro.Postcodes 2264 and 2265 will invest approximately $106.8M into future developments in 2018, with a focus on improving infrastructure ($51.8M or 48.5%). This is followed by commercial ($26.9M or 25.2%), residential ($21.6M or 20.3%) and industrial projects ($6.3M or 5.9%). This strategy is key to the market as it will stimulate commercial activity and increase local jobs, which leads to sustainable economic growth in the near future.