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NSW North Coast to consolidate price growth in 2022

Houses in coastal Port Macquarie, NSW
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Port Macquarie offers investors some of the highest rental yields in all of New South Wales. Photo: Shutterstock

NSW North Coast to consolidate price growth in 2022

Market pressure has been forecast to intensify over the next 12 months on the New South Wales North Coast, consolidating big price gains already recorded in one of Australia’s most in-demand regional areas.

Market pressure has been forecast to intensify over the next 12 months on the New South Wales North Coast, consolidating big price gains already recorded in one of Australia’s most in-demand regional areas.

House prices across the North Coast’s sub-regions rose by a minimum of 10 per cent in the last 15 months, according to analysis from buyer’s agency InvestorKit, led by the Richmond Valley coastal region at 27.3 per cent.

Richmond Valley covers Byron Bay, Ballina, Brunswick Heads and surrounds.

And with listing numbers down 38 per cent over the 12 months to the end of July, InvestorKit founder Arjun Paliwal expects buying conditions to remain intense and outperform capital cities in 2022.

Days on market on the North Coast fell by an average of 30 per cent over the year, while vacancy rates sat at less than 1 per cent in most areas.

The best rental yields for investors are available in Port Macquarie and Coffs Harbour, at levels upwards of 4 per cent.

“Property market pressure for the NSW northern coastal markets is currently some of the highest in the country; good news for those already in the market but problematic for prospective buyers due to the extremely high competition,” Mr Paliwal said. 

“Similar to the sales market, rental data in the NSW North Coast is reflecting similar intense market pressures. 

“Among those renting, we can expect to see a surge in rental pricing and demand, which is already sitting at crisis levels. 

“However, investors can expect a healthy gross rental yield for most of the coastal cities of around 4 per cent, but this will fall closer to the major hubs of Sydney.” 

Mr Paliwal said there were many factors contributing to the hot buying conditions, including historically-low interest rates, easier access to finance, local job market strength, government investment and the rise of working from home. 

“We expect that market pressure over the next 12 months will remain intense, sales and rental pricing will continue to surge, and the North Coast regions will continue to outperform our capital cities over 2022,” he said.

NSW North Coast sub-region outlook

Gosford

Gosford’s median house price has been growing strongly since September 2020, with an 18.4 per cent increase over the last 12 months.

Despite the decline in the number of new listings, monthly sales volumes continue to grow since last June. Rentals are also seeing higher demand in Gosford, with the average number of monthly listings down 28.7 per cent over the past year. 

Wyong  

The median price in Wyong has increased by 16.7 per cent over the last 12 months, and there has been a 40.3 per cent reduction in the average number of days for sale on the market.

With vacancy rates sitting at a very low 0.3 per cent, Wyong SA3 region is facing a rental crisis. During early 2021, Wyong recorded a rise in median rents due to market pressure.

Investors can expect a medium-level rental yield of 3.5 per cent in Wyong. 

Lake Macquarie - East

Since the second quarter of 2020, the median price in Lake Macquarie - East has been rising strongly, a total 13.7 per cent increase over the last 12 months.

The number of days listings have been on the market has also declined 31.3 per cent. As a result, market pressure continues to intensify in the region due to declining volumes of new listings and higher monthly sales volumes. 

Newcastle

The median property price in Newcastle has increased 15.3 per cent over the last 12 months.

Those looking to invest in the region can expect a 3.5 per cent rental yield, with the number of monthly rental listings in the region declining 21 per cent over the past year contributing to a high-pressure rental market. 

Port Stephens

Port Stephens, which includes suburbs such as Nelson Bay, Anna Bay and Fingal Bay, has experienced a 10.7 per cent rise in median prices in the region, while the average days on the market for sale has fallen 29.8 per cent.

The average number of rental listings has declined 40.6 per cent over the past year. Investors can expect a health rental yield of 3.5 per cent as rental market pressure increases. 

Port Macquarie

Port Macquarie notched the lowest median price increase across all the eight regions, at 10.2 per cent, but on the flipside, investors in the region can expect strong rental yields upwards of 4 per cent.

The average monthly number of retinal listings has been declining since June 2020, down 35.3 per cent. 

Coffs Harbour

Coffs Harbour has experienced one of the highest median price rises, at 21 per cent over the past 12 months.

However, its rental market is facing increased pressure, with listings declining 31.8 per cent.

As a result, investors can expect to see an upwards of 4 per cent rental yield in Coffs Harbour.

This is very exciting and rare, as most coastal locations don’t see these healthy rental yields. 

Richmond Valley - Coastal

The SA3 region known as Richmond Valley - Coastal, encompassing Byron BayBallinaBrunswick Heads, Bangalow, Woodburn, Evans Head and surrounds, recorded the highest median price increase of 27.3 per cent.

While the number of new listings continues to decline, the monthly sales volume has been rising since mid-2020, reaching the peak in July 2021, which has resulted in further intensifying market pressure.

The rental market is also facing pressure, with the number of listings down 37.1 per cent over the past year.

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