Central Coast prices have been going through the roof.
Homebuyers on the Central Coast and Sydney’s outer suburbs will have to fork up an average of about $40,000-$60,000 more for properties than buyers did last year due to runaway growth in prices.
It comes as CoreLogic data published this week revealed the Central Coast and outer regions, including the Blue Mountains and Blacktown, were Sydney’s fastest growing housing markets over the year to February.
Price growth in these areas not only eclipsed the citywide average but dwarfed increases in Sydney’s traditionally more sought after eastern suburbs, inner west, north shore and inner city.
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The Central Coast was by far the strongest market, with prices surging 9.3 per cent, or by an average of about $58,000, in the year to February.
The median price of a Central Coast home is now about $682,000 compared to nearly $624,000 at this time last year.
Prices in the Blue Mountains, Blacktown and outer southwest finished January nearly 6 per cent higher than they were at the same time last year – about three times the Greater Sydney average growth of 2 per cent.
The rises equated to about a $40,000 increase in the median price in each western region.
Experts attributed the lift in coast and outer Sydney prices to the COVID-driven shift to working from home, which encouraged families to consider properties in locations further from the Sydney CBD.
Buyers were also putting a higher value on space, with houses with backyards and extra bedrooms favoured over apartments.
CoreLogic head of research Eliza Owen said recent buyer patterns were markedly different to those seen in previous boom markets.
The last housing boom from 2013-2017 was led primarily by investors purchasing properties within inner city areas, whereas first homebuyers and upsizers in outer suburbs were leading the recent charge, Ms Owen said.
Realestate.com.au chief economist Nerida Conisbee attributed the surge Central Coast home values to demand for “big homes on big blocks close to the beach”.
“No longer being tied to the office meant greater choice in terms of where (buyers) focused their properties searches,” Ms Conisbee said.
Homebuyers are increasingly searching out beach locations where they get better bang for their buck.
CoreLogic research director Tim Lawless said there has been a transition of activity away from the metro regions to the outer fringe and regional markets.
“Better housing affordability, an opportunity for a lifestyle upgrade and lower density housing options … might be contributing to this trend, along with the new found popularity of remote working arrangements,” he said.
Mr Lawless added that another broad trend was the outperformance of houses over units.
“Demand for units has diminished through COVID-19 amid record low levels of investor participation and changing living preferences,” Mr Lawless said.
The outer suburbs are getting more popular.
“At the same time supply levels are heightened in some precincts. While demand and supply remain imbalanced we are likely to see units continue to underperform relative to detached housing markets.”
