The Central Coast property market has been the rock in the NSW property market downturn, with values and interest holding stronger than the city counterparts.
The Central Coast is emerging from the cold of winter and is now dazzling property buyers, for both owner occupied and investment opportunities.
Central Coast auction clearance rate tells us more than just sale figures
Whilst the auction clearance rate for the Central Coast week ending 7 October was only 40%, Central Coast real estate agents are starting to realise that Coasties just don’t like auctions. In November 2017, there were 41 auctions with a clearance rate of 58%, and just one month into the Spring season, there were only 25 auctions and only 10 sold under auction conditions.
The Central Coast lifestyle is definitely more relaxed, and generally buyers with a relaxed approach don’t like to be backed into a corner or pressured by a real estate agent to make a bid.
It’s likely that we will continue to see a drop in the number of properties listed for auction and also the clearance rate, not just because Coasties don’t like auction conditions, but because home loan approvals are trickier to obtain.
Just remember, the main reason why a seller opts for an auction rather than a private sale, is their ability to lock the buyer in and waive their cooling off period. That means that the buyer will lose their deposit if they can’t complete the purchase due to financing issues.
Home loan pre-approvals increasing
As mortgage brokers, we get to see the interest levels in the market before a sale is even recorded. The number of our clients who have a pre-approved home loan is at the highest level for 2018. That’s a great indication that buyers are ready to buy and are confident of market conditions. Most of our clients are looking to purchase on the Central Coast and a small number are looking at the North West Sydney region within specific school catchment areas.
Central Coast is a two-speed property market
As the Central Coast offers a wide variety of properties and price points, it’s important to remember that some markets will move faster than others. Much like the Sydney market, the prestige properties have certainly slowed. The +$2M property market is a little sluggish on the Central Coast as sellers are holding out for their ultimate price, whilst good, quality properties below $1,500,000 that are priced accurately are selling relatively quickly, and this price bracket is expected to pick up leading into Summer.
Prestige properties +$3,000,000
If you’re in the market for a prestige property on the Central Coast, now is the time to negotiate. There are several properties that have been sitting on the market for too long. Now, when you’re spending over $3,000,000 you are allowed to be a little fussy, so it’s not just the market that might slow sales, but also the quality of the property. The boom time for lux properties has gone and sellers have to offer more in their property or drop their price.
Let’s take a look at some slow moving prestige properties.
What a stunner! 2.47 acres, architectural designed home by Bob Nation (one of the world’s leading architects, no less), with 5 bedrooms, 5 bathrooms and 4 car spaces. Now this home is just beautiful and includes the most sophisticated and prestige inclusions. But, and there is a but, the price for this home is because the owners over capitalised on the inclusions. There’s no pool, there’s no fencing for pets, and there is very little privacy from the neighbours. And with expressions of interest above $4,000,000 – one has to remember, this is Tumbi Umbi – not Terrigal or Wamberal. She’s been on the market since April 2018 with the most recent agent and expressions of interest close on 12 October through The Agency.
Wow, just look at those views! This property certainly wins in terms of spectacular views, and proximity to the beach, and if you’re comfortable paying $4,800,000 for views, then she’s all yours.
This property has a few downsides, apart from the view, there’s nothing much else to love about this house. There’s only a swim spa, so when you get too hot from lying on the sun lounges, you’ll have to take yourself off down the road to the beach. It’s only 556sqm… now that is very low maintenance, but that means you’re paying $8,633 per sqm! The kitchen is dated, and it doesn’t even appear to have stone benchtops, bathrooms are clean but dated. She’s been on the market for, wait for it… 511 days! Yep, she’s about $2m over priced. On the market with George Brand.
Quality sub $2,000,000 properties
Now this one is a stunner! Views over Terrigal, brand new kitchen, custom cabinetry, new bathrooms and all wrapped up in a pretty colour scheme with plantation shutters. Ok, so the front entry is a little ugly, but it’s what’s inside that counts. 3 bedrooms, 2 new bathrooms, and parking for 2 cars with dual street access! And some functionality bonuses of ducted A/C, electric blinds and an outdoor shower.
This one will move quickly, as long as the agents price it accordingly, somewhere between $1.7m and $1.8m. On the market with LJ Hooker.
More developments approved for Gosford CBD
Development on the Central Coast is still growing, with the council approving another 28 low and high rise developments in Gosford CBD. The latest development applications approvals and lodgements for Gosford are;
31-37 Mann Street, Gosford NSW 2250 (18 storeys)
34-38 Mann Street, Gosford NSW 2250 (15 storeys x 2)
13 Mann Street, Gosford NSW 2250 (8 storeys)
Cnr Duke & Albany Streets, Gosford NSW 2250 (6 storeys x 3)
43 Beane Street, Gosford NSW 2250 (18 storeys)
Bent Street, Gosford NSW 2250 (20 storeys and 13 storeys)
144-150 Henry Parry Drive, Gosford NSW 2250 (in planning stages)
122 Erina Street East, Gosford NSW 2250 (in planning stages)
North Gateway, Gosford NSW 2250 (5 towers up to 15 storeys each)
300 Mann Street, Gosford NSW 2250 (23 storeys)
10-12 Hills Street, Gosford NSW 2250 (8 storeys)
333 Mann Street, Gosford NSW 2250 (20 storeys)
303 Mann Street, Gosford NSW 2250 (20 storeys)
34 Hills Street, Gosford NSW 2250 (8 storeys)
99 Faunce Street West, Gosford NSW (8 storeys)
5 Kible Street, Gosford NSW 2250 (6 storeys)
55 Holden Street, Gosford NSW 2250 (5 storeys)
54 Donnison Street West, Gosford NSW 2250 (8 storeys)
72 Donnison Street West, Gosford NSW 2250 (8 storeys)
28 Young Street, Gosford NSW 2250 (6 storeys)
23 Young Street, Gosford NSW 2250 (7 storeys)
10 Young Street, Gosford NSW 2250 (10 storey hotel)
7 Young Street, Gosford NSW 2250 (7 storeys)
5-13 Fielder Street, Gosford NSW 2250 (8 storeys)
65 Mason Parade, Gosford NSW 2250 (Bonython Waters)
54 Etna Street, Gosford NSW 2250 (6 storeys)
75 Mann Street, Gosford NSW 2250 (Central Coast Regional Library 10 storeys)
110-118 Mann Street, Gosford NSW 2250 (Mariners Plaza 30 storeys x 2)
Development list courtesy of Development on the Central Coast.
Buying in Gosford
Safe to say there are a lot of buying opportuSpring has sprung and the Central Coast property market is starting to bloom. Home loan pre-approvals are increasing in time to snap up a property before Christmas.nities coming up in the next few years. If you’re buying off the plan, always do your research on what neighbouring properties will be built to ensure your view doesn’t disappear. From a finance perspective, a pre-approved home loan won’t hold much weight in two years’ time when the property is completed, so keep that risk in mind. Always speak with an experienced mortgage broker before buying to ensure you understand all the financial risks and credit policies that may affect you.