The NSW Central Coast Property Market

Silverhall The NSW Central Coast Property Market

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This eBook contains general information only. The information in this eBook is general information only and has been prepared without taking into account your personal objectives, financial situation or needs. You should consider any advice in this eBook in light of your personal objectives, financial situation or needs before acting on it. You may wish to consult a licensed financial adviser to do this. The information in this eBook is no substitute for financial advice. Silverhall assumes no responsibility for any actions you take independently, and without seeking professional advice from a licensed financial adviser.

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Research is key to helping you What drives capital growth?

make a decision. • Population growth through job creation – providing the impetus for people to move to a At a time when there is increased attention on region thehousing market, where there are alternating opinions on which markets are expected to perform • Infrastructure investment – both government better than others, we are excited to provide you (transport, schools etc.) and non-government with our in-sight on the Central Coast of New South industries providing needed amenities to an area Wales property market. • Entry point – the right asset for the right location

Silverhall has been utilising its proprietary research These critical components will influence an methodology in locating growth corridors for over undersupply to oversupply in a property market. for almost 20 years. There are key points in making a decision on property investment. Understanding the supply and demand of property and what is driving this is fundamental. The culmination of these drivers and its resultant impact on supply and demand will determine the capital growth of a property.

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Why we like Central Coast, NSW - Executive Summary

The Central Coast is located between the Silverhall’s research into the Central Coast metropolitan areas of Sydney to the south and property market indicates the region is well Newcastle to the north. There are over positioned for investment. The key elements 81 kilometres of ocean coastline and of forecast employment, population growth extensive inland waterways, including the and planned significant infrastructure investment Hawkesbury River, Brisbane Water and Tuggerah are providing the platform for capital growth. Lakes. The region has significant energy and extractive resource reserves.

The Central Coast is also a region in the midst of major growth, with a number of significant infrastructure and development projects underway; such as the Warnervale Town Centre and the Wyong Employment Zone (WEZ). These initiatives will encourage investment and will further support growth of the region.1

“Nationally we are seeing a drive to affordability. It is pushing up the popularity of places like the Central Coast. The Central Coast is overwhelmingly coming up as the area outside of Sydney that is quickest selling, with certain suburbs within the region registering the fastest moving in popularity. As we see people move up to the Central Coast, it’s creating a workforce of white collar employees, that is creating business growth as well."

REA Group’s Chief Economist, Nerida Conisbee

1 1http://www.nsw.gov.au/region/central-coast

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Population Growth What is driving population growth?4

The Central Coast is the 3rd largest urban area in • Local population growth (35%) as well as New South Wales and 9th largest urban area in people moving into the area (65%) Australia, and is set for major growth in all aspects. Population alone is set to grow to approximately • The attraction of liveable communities 415,000 by 2036, with 70% of the forecast growth and lifestyle to be in the Wyong LGA. This represents 75,500 • New residents attracted to the area by more people compared to 2016.3 relatively affordable housing When compared to the capital cities, particularly • Proximity to Sydney and Newcastle Sydney, which is approximately an hour away, the metropolitan areas Central Coast represents an affordable location to acquire a property. • Changes in demographics, ageing population, increase in life expectancy and young people leaving home

Table 1: Median Property Value5

Location Median Value March 2017

Central Coast $592,505

Greater Sydney $1,032,820

Greater Melbourne $718,667

Greater Brisbane $515,669

3 NSW Government Department of Planning 4 NSW Government Planning and Environment “Central Coast Regional Plan - 2036” - Your Future: Central Coast: A discussion Paper (September 2014) 5 Residex State Market Report March 2017 FREE INFORMATION EVENINGS FREE INFORMATION EVENTS To Register Call 1300 66 77 24 Online www.silverhall.com.au Call 1300 66 77 24 Online www.silverhall.com.au Silverhall The NSW Central Coast Property Market

Employment Growth Key Projects behind the employment growth: In 2016, the Central Coast had 151,521 employed residents, an increase of 15.7% during the preceding •Warnervale Town Centre, Business and five year period.6 Education Precincts Like any expanding region, a growing economy will • Wyong Employment Zone need substantial employment growth in order to • Gosford and Wyong Hospital expansions maintain stability. The NSW Government estimates the Central Coast will have 24,674 additional jobs • Relocation of ATO jobs and complimentary by 20367 with 60% of these jobs to be in the Wyong agency to the Central Coast LGA. This makes sense when you consider the • Westfield Tuggerah Wyong LGA has around 70% of the region’s industrial employment land.8

The key employment zones for new job growth The WEZ is located by the M1 which connects to include North Wyong area (10,500), including the Sydney and Newcastle, positioning it ideally to 10 Wyong Employment Zone (WEZ), Town Centres connect to the Sydney to Brisbane freight corridor. including the new Education and Business The Wyong council will have a new Education and Precinct anchored by the new Warnervale Business Precinct in Warnervale that will bring more Town Centre (9,000), Gosford as a Regional City student places and is expected to employ over 1,500 9 and Tuggerah-Wyong as a major centre (5,500). people and house 5,000 once completed.11

Key employment zones within the Central Coast, of which three are in the Wyong LGA, include: • North Wyong • Tuggerah – Wyong • Warnervale • Gosford

6 NSW Government Planning and Environment 9 NSW Government Department of Planning “Central -Your Future: Central Coast: A discussion Coast Strategy 2006-2031 – Table 3 Paper (September 2014) 10 Media Releases 2015 Wyong Council 7 NSW Government Department of Planning 11 www.wyong.nsw.gov.au “ Warnervale Town Centre: “Central Coast Regional Plan - 2036” Grow Work Play” 8 NSW Government Planning and Environment - Your Future: Central Coast: A discussion Paper (September 2014)

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Infrastructure

The Central Coast is a region in the midst of Infrastructure development is being focussed in and major growth with $4 billion+ of infrastructure around the Warnervale Town Centre and investment underway or approved. These include Wyong Employment Zone.13 a number of significant infrastructure and A significant improvement in transport development projects already underway, such efficiency is the North Connex project – the as the Warnervale Town Centre and the connecting link between the M1 and M2.14 Wyong Employment Zone (WEZ). These initiatives will encourage investment and will The $3 billion15 project will enable travel from Wyong further support growth of the region. (M1) to Sydney without a single set of traffic lights, providing substantial savings in current travel times. The state government confirmed the Central This will have a very positive impact on demand for Coast funding package would be worth more properties as people look to the affordability than $600 million, not including the $368 million and lifestyle the Central Coast offers. already promised for the Gosford Hospital upgrade.12

“Wyong Shire is on the crest of an investment wave with over $4bn worth of proposals by local, national and international businesses either underway or in the pipeline”16

12 www.dailytelegraph.com.au - $600 million battleground 14 www.theaustralian.com.au/news/treasurer-joe-hockey- 13 NSW Government Planning and Environment – says-new-ato-office-will-create-600-new-jobs-on- Your Future: Central Coast: A discussion Paper central-coast/ (September 2014) 15 http://northconnex.com.au/ 16 Media Releases 2014 - $4 billion pipeline of investment proposals in Wyong Shire

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Infrastructure Table 2: Investment into the Region

Present and Future Investment into Region Project Costs

Central Coast Airport – Bushells Ridge17 $250 million

Lakeside Shopping Centre – The Entrance18 $300 million

Kooindah Waters Investment19 $100 million

North Connex upgrade M1 to M2 (Sydney) $3 billion

New Warnervale Town Centre Investments (Road, Employment, $825 million Transportation) total, which includes:

Sparks Road Upgrade New Warnervale Retail Precinct including Woolworths and substantial residential subdivision

Warnervale Town Centre Train Station

Warnervale Education and Business Precincts

Gosford Hospital Upgrade20 $368 million

Wyong Hospital Redevelopment21 $200 million

Expansion of Westfield Tuggerah22 $50 million

rinity Point Development23 $388 million

ransport maintenance hub – Kangy Angy24 $300 million

M1 Pacific Motorway Upgrades – Tuggerah to Doyalson $245 million

17 Central Coast Express - Wyong Council votes for 21 Central Coast Express - 20th March 2015 report into regional airport near Warnervale 22 Media Releases 2014 - $4 billion pipeline of 18 Wyong Regional Chronicle - 30th January 2015 investment proposals in Wyong Shire 19 www.lakesmail.com.au/story/2454656/new 23 The Herald - Trinity Point marina expected to be $388m tourist drawcard ownersinvest/100m/to/grow/kooindah/waters 24 www.dailytelegraph.com.au/newslocal/entralcoast/ 20 Central Coast Express - 20th March 2015 state/govt/on/track/to/build/300m/rainmaintenance/ hub/at/kangy/angy/

Demand and Supply

Population growth creates demand for new “Despite its attraction to new residents from accommodation. The balance between underlying outside the Central Coast and a growing local demand and supply has an impact on vacancy population, housing supply over the last five years rates, rents, prices and construction. has been well below what’s needed with only an average of 790 new houses built annually for the Silverhall targeted property investment areas last 5 years… which is well below the 1,840 currently have vacancy rates as low as 0.9% on dwellings needed annually to support projected the Central Coast. “An Urban Development Institute growth.”26 according to the NSW government’s of Australia report to be released, report. estimates the region’s housing shortfall is now more than 8,000 homes.”25

Overall, this is leading to a mismatch in supply and demand for housing for the region. In addition, the largest non-governmental land owner has recently applied for rezoning of land (on the Central Coast). It is estimated to take up to 10 years before any further development will be possible with the release of the land.

“The Central Coast is facing a housing shortage so dire it could run out of new homes within five years unless something drastic is done to improve the situation. An Urban Development Institute of Australia report to be released today estimates the region’s housing shortfall is now more than 8,000 homes.”26 Neil Keene - Daily Telegraph. Feb 2015.

25 http://www.dailytelegraph.com.au/“Housing Shortage 26 NSW Government Planning and Environment – in Region is Critical” Your Future: Central Coast: A discussion Paper (September 2014) 25 Central Coast 2015 State of the Land - UDIA

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Conclusion

In establishing an opinion of the Central Coast • The Central Coast presents a much more property market, Silverhall has utilised its own affordable property investment. Less capital research methodology supported by other prominent outlay is required and the yields are greater than research houses. It is critical however to understand Sydney and Melbourne the specific suburbs you are investing into within • The Central Coast has a high forecast percentage the Central Coast and understand the demand and population growth with the majority of this growth supply imbalance. coming from people moving to the area

The key elements of growth are present in • There is currently a significant under supply of the NSW Central Coast market, making it a housing on the Central Coast location we believe will outperform other locations: • The forecast growth is being driven by substantial infrastructure investment, including public transportation, hospital upgrades and education centres

This clearly suggests we are buying at the best possible time for market movement.

Silverhall Background

Since 1999, we have been empowering our The performance of the property will allow clients to meet their objectives when investing for the cycle of investment to continue as in property. We are dedicated to providing new properties are purchased and clients’ our clients with a ‘full circle service’ unique to objectives are achieved. Using our proven each client’s financial footprint and objectives. specialist proprietary research process, Silverhall identifies key geographic housing Growing Client Base regions. We then work with our clients Over the last 10 years Silverhall has presented very closely to match the right kind of to over 6,050 clients. Our private client property to our client’s individual situation. consultants have met personally with over By then monitoring the performance of the 3,100 clients during that period and from these investment on a year to year basis, Silverhall is relationships have sold over 1,000 properties. able to provide insight into the benefits Silverhall has grown its database to over 38,000 of holding or selling the property – this clients in this time. Silverhall are regular means our clients have an actively managed speakers at Property Investment Shows along portfolio in an effort to maximise the with industry presentations for financial returns of the investment. planners, accountants and mortgage professionals in respect to residential property.

Silverhall adopts a ‘clients first’ philosophy. It is a simple concept that suggests when a client is satisfied they will do business with you again. The objective of Silverhall is not only to provide a quality property, but moreso to provide an investment tool that will grow in value. Clients are able to make informed decisions due to the comprehensive analysis they receive.

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