‘A beautiful place’: Central Coast suburbs where house prices rose most

Sydneysiders flocking to live on the NSW Central Coast in search of more affordable housing are driving up prices by as much as 22.1 per cent in a single year, latest research shows.

No fewer than eight suburbs have recorded double-digit price growth in the past 12 months due to the soaring demand for cheaper homes, a commutable distance to the city, and a beachy, more relaxed lifestyle.

Long Jetty house prices jumped by 22.1 per cent over the year to June, to a median $1.16 million, Bateau Bay by 21.1 per cent to $1.15 million, Mardi by 17 per cent to $930,000 and Wyong by 13.7 per cent to $790,000, on figures from the latest Domain House Price Report.

In Avoca Beach and Halekulani, prices have risen 11.5 per cent to medians of $1.7 million and $730,000 respectively. San Remo jumped 10.4 per cent to $740,000 and Point Clare rose 10 per cent to $1,025,000.

“The Central Coast is a beautiful place and I think the key driver for the growth is affordability, with the lower priced suburbs in the cheaper pockets outperforming the rest, which reflects the broader trend we’re seeing in the market,” Domain senior economist Joel Bowman said.

“The suburbs closer to the heavy rail and the major roads to make it easier to get to Sydney are also doing well, and I think we’ll see continued strong demand as more interest rate cuts come. But we’ve seen prices soften in the premium lifestyle suburbs as they tend to have been more sensitive to the higher interest rate environment, and the cutbacks in discretionary spending.”

Wamberal was one of only three of the total 40 Central Coast suburbs where the median price fell over the year to June. It dropped 7.6 per cent to a median $1.49 million, while North Gosford fell 4.1 per cent to $743,000 and Terrigal dipped 1.0 per cent to $1,465,000.

Much of the demand for the lower priced suburbs is coming from first home buyers supported by government initiatives such as the First Home Guarantee, Bowman said. Downsizers are less active with so much short-term rental accommodation on the market limiting the supply of available beachside homes.

Long Jetty prices have been supported by an increasing recognition that it’s a wonderful alternative to the better-known Terrigal, local agent Dan McLaren of Whiteman Property said.

“People have started to think of it as a good antidote to the crowded Terrigal market,” he said.

“It’s quieter which I think suits Sydneysiders looking for a less busy place, but it still has a nice strip of shops, a lovely cafe culture, a bit like in the inner west [in Sydney], and it’s close to the best beaches and the golf course, while being more affordable.

“At the same time, some of that price growth is coming too from the demand from developers. It has a lot of big, flat blocks with zoning that allows redevelopment and putting in townhouses and duplexes.”

It’s a similar story to Bateau Bay, about four kilometres south of Long Jetty, with the second-biggest jump in house prices.

“Ten years ago, Bateau Bay wasn’t sought after, but now it’s definitely in the top 10 places on the coast, with quite a few $2 million-plus sales,” Tony Trinder of Stone Real Estate said.

“People are relocating there from Terrigal, Wamberal and North Avoca as those places are getting too congested. And we’re seeing plenty of families from Sydney moving there as it’s more affordable and more open.”

Mortgage broker Murray Katz of Logix Financial said he’s been seeing price growth on the Central Coast as more people move there from Sydney because of affordability concerns.

“It’s certainly now becoming a growth corridor as Sydney has become more and more expensive and people are pushed out towards the Central Coast, and see good value there,” he said.

“There’s a lot more affordable housing in that area, and there’s also the train line – although not enough trains – and good roads to commute back to the city.

“It’s hard for locals as they may not be able to afford the higher prices as a result of the Sydneysiders moving there and paying more, but they might end up forced to go to areas even further out where they’d be able to buy homes.”

As one of the few suburbs to face a price decline over the past year, even Terrigal is likely to bounce back in time, George Brand Real Estate agent Colin Granger said.

“If people have extra money, they spend it on buying a weekender in a place like Terrigal,” he said. “But [now], people are a little bit cautious and don’t want to stretch themselves. So we’re seeing the more affordable areas, at the moment, see stronger price growth.”