Gwandalan and Summerland Property Market Update 2nd Half of 2022
In Q3 2022, Central Coast (postcode 2259) recorded a median house price of $802,000. This is an annual (Q3 2021 – Q3 2022) 2.8% growth. That said, on a quarter-by-quarter basis (Q2 2022 – Q3 2022), median house price softened by -8.9%. This reflects cash rate hikes and consumer uncertainty translating into the market. Total house sales decreased annually and quarterly, with Q3 2022 recording the lowest number (244 sales). The unit market recorded an 17.9% median price growth annually and 2.7% quarterly. A lower median unit price growth in the past quarter further confirms the impact of cash rate hikes
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly shifted for both property types, to wider discounts of -4.9% for houses and -5.3% for units. Market conditions in Central Coast have started to shift towards favour buyers, as vendors are willing to accept below the initial listing price.
In September 2022, house rental yields in Central Coast (Postcode 2259) were recorded at 3.4%, higher than Sydney Metro (2.6%). In the 12 months to Q3 2022, median house rental price increased 11.5% to reach $580 per week, despite a 33.4% increase (to 623) in the number of houses rented. Average days on the market remain low at 19 days. This represents a resilient rental market in Central Coast, which has a more affordable investment entry price compared to Sydney Metro.
2 bedroom houses have provided investors with +12.5% rental growth annually, achieving a median rent of $450 per week.
Postcode 2259 recorded a vacancy rate of 1.0% in September 2022, which is below Sydney Metro’s 1.3% average. Vacancy rates in Postcode 2259 have had a slight uptick in early 2022 but declined in the past 3 months. It trended below 1.2% for 18 months, which suggest quicker occupancy of rental properties. These key indicators create a conducive and sustainable environment for investors, particularly with the median house price downturn in the past quarter (Q2-Q3 2022).
