Gosford Investment Report
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GOSFORD INVESTMENT REPORT 1 INTRODUCTION 6 FAVOURABLE LOCAL EMPLOYMENT CLIMATE 2 REGIONAL AND LOCATIONAL CONTEXT 7 POPULATION GROWTH 3 OVERVIEW OF THE CENTRAL COAST ECONOMY 8 WHAT DID THE CENTRAL COAST PROPERTY 4 CORELOGIC MOODY’S HOUSING REPORT 2019 MARKET LOOK LIKE IN 2018/2019? 5 ENHANCED CONNECTIVITY 9 TOP 10 REASONS TO INVEST IN GOSFORD INTRODUCTION With over $1B of government infrastructure spend in retail, health, entertainment, recreation and education. current construction or planned for commencement the Central Coast is experiencing an unprecedented The Gosford City Centre Masterplan will encourage transformation. more people to both live and work in Gosford and with a substantial population expansion and the creation of With Gosford as the regional city focus Gosford 2.0 is thousands of jobs will confirm the emergence of a truly set to create a new standard of liveability that’s more new city. connected, more dynamic and more diverse in areas of REGIONAL AND LOCATIONAL CONTEXT The City of Gosford is located on the Central Coast of There is a significant quantum of retail, health services New South Wales, approximately 73km north of the and general amenity in the Gosford CBD area to service Sydney CBD. It offers the best of both worlds for a residential needs including: residential address, investment or holiday destination – a • Gosford Hospital (700m from The Archibald) coastal lifestyle with a CBD hub. It offers ready access • The Entertainment Grounds to public transport (bus and rail) and the motorway • Town Centre including medical specialists, M1 pacific Highway that takes you to Greater Sydney, retail, cafes particularly northern metropolitan Sydney, and other • Parks and reserves Central Coast centres. A 40 minute car journey to • Gosford Train Station Sydney’s North Shore or a 1 hour 20 minute train ride to • Central Coast Stadium Central Station. 25 24 23 06 05 15 04 22 21 13 07 20 17 11 14 12 08 18 10 09 02 19 01 16 03 1 Gosford High School 10 Gosford Private Hospital 19 Gosford Tennis Centre 2 Gosford Public School 11 Kibble Park 20 Gosford Leagues Club 3 Henry Kendall High School 12 Waterview Park 21 Gosford Olympic Swimming Pool 4 Gosford East Public School 13 Rumbalara Reserve 22 Gosford Sailing Club 5 St Joseph’s Catholic College 14 Imperial Shopping Centre 23 Terrigal Beach 6 St Edward’s Christian Brothers 15 Erina Fair 24 Pearl Beach 7 Gosford TAFE 16 Gosford Golf Club 25 Sydney 8 Gosford train station 17 Central Coast Stadium 9 Gosford Hospital 18 Gosford Racecourse OVERVIEW OF THE CENTRAL COAST ECONOMY Economic conditions on the Central Coast are strong • Population growth will encourage jobs growth and the region is forecast to grow even further in the • The completion of the NorthConnex and other years to come. Majors contributors to the Central Coast significant road upgrades will speed up travel times economy include: between Sydney and the Central Coast, further • A supportive tourism cycle reinforcing the economic strength of the region • Growth in professional services and the construction industry The NorthConnex tunnel will have a material impact • Investment in public infrastructure including on the Central Coast region. The link will provide a Gosford Hospital continuous motorway between the Central Coast and • Urban renewal in the Gosford Town Centre which is Western and South Western Sydney and will allow a coming to fruition quicker alternative journey. Essentially, NorthConnex will • The affordability of property and comparative make it possible to travel by road from the Central Coast price point to Sydney and the migration of first to Canberra without encountering a single traffic light. home buyers to the area The efficiency will support commuting activity between • An ageing population will boost demand for the Central Coast and Sydney as well as mobilise retiree product businesses and freight movements. CORELOGIC MOODY’S HOUSING REPORT 2019 Regarded as the leading voice in property trends, The region hits all the benchmarks of strong sustainable forecasts and insights – Moody’s have placed the Central growth: Coast as the No.1 region for capital gain in apartment • Substantial infrastructure projects prices across the next 2 years in Australia. Their considered • Historically strong rental returns growth forecast for 2020 and 2021 is in excess of 26%. • Population growth • Increasing lifestyle opportunities This is an exciting and understandable prediction based • Affordability on the many factors influencing the property market • Government spending that are no longer a story but an unfolding reality as you • Increased employment opportunities drive into the Gosford region. ENHANCED CONNECTIVITY The Government has invested heavily in the region, for considerable traffic congestion from Wahroonga. earmarking Gosford as the next significant growth A minority of 40 minutes is required for the trip from centre in the Sydney Metropolitan Area. Investments Gosford to Wahroonga. The NorthConnex motorway that have (or will) positively benefit the region include: would enable cars to bypass 21 sets of traffic lights • NorthConnex Motorway along Pennant Hills Road. It is expected to involve travel • Central Coast Highway West Gosford intersection time savings of about 6 to 15 minutes in 2019 and 9 to • Local Government Infrastructure Renewal Scheme 25 minutes in 2029 compared to current conditions on • Gosford Passing Loops Pennant Hills Road. • Business Investment Schemes Based on this guidance, the NorthConnex tunnel would make the trip from Gosford to Macquarie Park (and NorthConnex other centres of employment) close to one hour. The reliability of traffic flows would be improved by the The $3b NorthConnex is Australia’s longest road tunnel absence of traffic lights, allowing commuters to extend project – a 9km tunnel that will link the M1 Pacific their movement along the M2 and the M7. The time Motorway at Wahroonga to the Hills M2 Motorway at savings will also be considerable for people travelling at West Pennant Hills. With interchanges to the north and weekends, improving the experience of holiday home south, it will link Sydney’s north to the Orbital network. owners in Gosford. NorthConnex will have a material impact on the Central Coast region. The link will provide a continuous NorthConnex appears to be a major selling point motorway between the Central Coast and Western for Gosford CBD apartments. There can be traffic and South Western Sydney and will allow a quicker congestion on the coastal suburbs from Erina to Terrigal alternative journey. Essentially, NorthConnex will make and north. A Gosford CBD location would obviate the it possible to travel by road from the Central Coast to impact of traffic congestion to the east of the CBD. In Canberra without encountering a single traffic light. This this sense, the subject site can help to make Gosford efficiency will support commuting activity between the CBD become a travel destination for owner-occupiers Central Coast and Sydney as well as mobilise businesses and as holiday homes. and freight movements. *MacroPlanDimasi *At present, a weekday trip from Gosford CBD to Macquarie Park is estimated to take 90 minutes, slowing FAVOURABLE LOCAL EMPLOYMENT CLIMATE Over the five years to 2017, there were 12,000 job In terms of proportionate change, the largest change additions on the Central Coast, encompassing the has been registered in other services (62% growth), Gosford and Wyong LGAs. Prominent employment along with accommodation and food services (43% growth has occurred in the following industries: growth) and education and training (37.6% growth). Agricultural based jobs, followed by financial and 1. Education and training insurance services and arts and recreating incurred the largest proportionate losses over the five year 3,800 jobs period. It appears that retail, services and education and training are dominating the economic environment 2. Accommodation and food services on the Central Coast. Household facing industries have 3,700 jobs grown considerably over the period, given the nature of population growth (i.e. growth in the elderly and the 3. Healthcare and social assistance young) as well as the weakness of the Australian dollar, 3,400 jobs enticing more tourists to the region. 4. Manufacturing The growth in manufacturing employment is unique to the region. Typically, manufacturing based employment has 2,900 jobs experienced a decline in NSW over the last decade. The Central Coast is strategically located along the M1 Pacific 5. Other services Motorway, with superior freight and rail lines connecting 2,800 jobs Queensland with NSW. Affordable rent (compared with Greater Sydney), combined with a superior location, has contributed to the industry’s successes over the period. POPULATION GROWTH According to the Central Coast Finance Department’s relocation Central Coast’s population Regional Plan, the Central Coast’s to Gosford have resulted in a major population is expected to increase increase in the local workforce, by 80,000 in the next 15 years, as has the upgrade to Gosford which will significantly impact upon Hospital. This population growth and 80,000 population Gosford, being its regional centre. expansion of a skilled local workforce growth will drive the need for quality next 15 years The Federal Government’s relocation housing and will have a positive flow- of the ATO and the NSW State on effect for local businesses. WHAT DID THE CENTRAL COAST PROPERTY MARKET LOOK LIKE IN 2018/2019? The last year saw Australia’s property market take a more professionals migrated from Sydney in search stumble, with the biggest players - Sydney and Melbourne of a laid back lifestyle - the most affected by the crash. The downturn has been • A large number of new dwelling commencements marked by a handful of contributing factors: were approved (an annual increase of 22% in 2017/18) • Tighter lending criteria, particularly for interest only loans However, employment growth is strengthening and • A decline in foreign investor activity prices are more in line with local incomes.