Central Coast Property Market Forecast for 2025

1. Population and Demand Growth:

The COVID-19 pandemic reshaped regional housing markets, with the Central Coast attracting new residents seeking affordability, space and lifestyle benefits. While migration to the area slowed prior to the pandemic, the recent return of both internal and overseas migration has renewed interest in Central Coast properties.

2. Government Housing Initiatives:

To address the state-wide housing shortage, the NSW Government has set an ambitious target of constructing 377,000 new homes over the next five years, including 9,400 on the Central Coast by 2029. It’s like the real estate equivalent of New Year’s resolutions—big goals with plenty of determination. This initiative aims to improve housing access while ensuring that new developments are situated in areas with robust infrastructure—close to schools, healthcare facilities, and transport links. With this influx of new homes, we can expect an uptick in demand as the area’s infrastructure develops to support these targets.

3. Infrastructure Upgrades Boosting Accessibility:

Sydney commuters, rejoice! The Central Coast’s appeal to Sydney commuters has grown thanks to infrastructure projects such as NorthConnex and improved transport links. The upcoming Transport Oriented Development (TOD) Program, due to start in mid-2025, will further bolster the area’s connectivity. Under this initiative, the transport hubs of Woy Woy, Tuggerah, Gosford, and Wyong will see accelerated residential approvals, promoting transit-accessible living. This planning strategy aims to concentrate housing and jobs around public transport hubs by amending planning controls to allow developments under the State Environmental Planning Policy, which will largely override local councils. This approach is anticipated to streamline housing and economic development within Central Coast communities while supporting accessibility and local job growth.

4. Diverse Property Hotspots for Different Buyer Profiles:

The Central Coast boasts a range of suburbs appealing to various buyer needs and budgets. Beachfront locations like Avoca Beach, Copacabana, and MacMasters Beach continue to attract those looking for an exclusive lifestyle. In contrast, emerging suburbs such as Kincumber, Long Jetty, and Bateau Bay offer more affordable entry points, with median house prices hovering around $850,000–$1.2 million while still providing easy access to beaches, schools, and vibrant local cafes (source: CoreLogic). Meanwhile, land-rich areas like Warnervale present excellent opportunities for those seeking new housing developments with good accessibility. Whether you’re after salt in your hair or space for your veggie garden, there’s something here for everyone.

5. Tight Rental Market Conditions:

Rental vacancy rates in the Central Coast area remain critically low, dropping below 1% this past year (source: SQM). This scarcity is driving up rental prices, making the region attractive to property investors. Although rental yields remain moderate, the consistent rise in rents signals steady income potential for investors. Additionally, as more people choose to rent while saving for home purchases— which, let’s be real, is taking longer than it used to—the rental market is likely to remain tight, ensuring a steady flow of demand.

6. Limited Supply and No Oversupply Issues:

While the Central Coast housing market has grown significantly, it has managed to avoid issues of oversupply. New housing approvals over the past 15 months represent less than 1% of the total housing stock, ensuring the market remains balanced (source: ABS). This limited housing supply means that once demand surges, market pressure can increase rapidly due to the restricted availability of homes. For potential buyers and investors, this indicates a stable market with opportunities for capital appreciation as supply constraints keep prices competitive.

7. Affordable Alternatives to Sydney’s High Prices:

One of the primary draws of the Central Coast is its affordability compared to Sydney. This price difference not only attracts Sydneysiders seeking more for their money but also first-time homebuyers looking to break into the market. With the potential for a moderate but steady increase in property values, the Central Coast offers a promising entry point for those priced out of Sydney.