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It’s gone from being an affordable holiday destination to one of the jewels in the crown of regional NSW.
The Central Coast has long been an easily accessible beach paradise. Many beaches and national parks are quiet, towns undiscovered and mangrove strewn bays peacefully untouched.
It’s a short drive from Sydney, and, for many decades it was a holiday destination rather than its own functioning region.
There was a period where many sleepy and gorgeous coastal villages such as Hardy’s Bay, Killcare or Wagstaffe would be almost empty of people during winter as the holiday homes far outnumbered the actual residents. So these would become kind of holiday ghost towns. By the late 1990s the Central Coast was ranked 20th for domestic holiday destinations in Australia. In 1998 1.4 million Australians spent their holidays there. It's still a magnet for Australians to go on holidays. As at 2015, 62% of overnight visitors were from Sydney. These overnight visitors spent over $507 million in 2015, showcasing the economic drawcard of the region.
Even though the area has always been highly attractive to holiday makers, it remained a sleepy region for many decades, starved of infrastructure and jobs. People came and enjoyed the sun and surf and then left. Unemployment was always higher in the Central Coast than the rest of NSW. In the late 70s it was at 17%. In 2009 youth unemployment was at 25%. For many years the Central Coast was a stagnant but beautiful backwater.
That’s all changed in the last ten years for a number of reasons.
Firstly, population growth. As Sydney hit its stride in the 2000s and real estate prices flourished, the population inevitably started spilling out to regional areas in close proximity. These included Wollongong, Newcastle and the Central Coast. Large numbers of young couples and families who could no longer afford to buy into the buoyant Sydney property market were forced out further. Suddenly, commuting from Gosford by ferry or train didn’t seem so difficult.
The numbers back this up. According to the NSW Department of Planning & Infrastructure’s Central Coast Regional Strategy 2006-2031, the Central Coast population is expected to increase to 386,900 by 2031. Between 2016 to 2021, 65% of the region’s population growth is expected to be from people outside the region, with this rising to 86% of new residents by 2031-36.
The significant difference in median house prices in the Central Coast compared with Sydney has led to what one publication termed as “young sea changers” – with young families moving there for the lifestyle and affordability and happy to do a long commute to work.
The Central Coast population is expected to increase to 386,900 by 2031.
Secondly, the Central Coast has a vibrant and growing local economy. The Australian Bureau of Statistics reports it has a GDP of $11.7 billion. This is a growth of 2.6% over the previous year. The Central Coast's main industries are manufacturing; IT and telecommunications and accommodation and food, which comes off the back of tourism and holiday travel.
What's important to note about these statistics is that tourism and holiday revenue is only one part of the Central Coast's success. Like Newcastle it has also managed to establish its own business and private sector focussed economy, making it more resilient and impervious to the changing fortunes of tourism.
The NSW Government has invested $5.6 million in 2014/2015 in project funding to attract businesses and boost the economy. Meanwhile an additional $108 million has gone into the region through private investment, showing clear signs of enthusiasm about the economy.
Gosford itself has become a major regional city, supporting 200,000 jobs in the city and home to many State Government agencies. Even the Federal Government has helped by moving 600 public servants from the Australian Tax Office from Canberra to Gosford in 2015.
The State Government has shown a great deal of confidence in the Central Coast and has invested over $300 million in road upgrades. The Government is also pumping money into a major upgrade of Gosford hospital ($368 million) and Wyong hospital ($200 million) and is planning for a regional airport. Another $890 million will be spent on a transport access program at Woy Woy, Ourimbah and Gosford.
Several major retail outlets: Aldi, Bunnings and the gigantic Kibbleplex shopping development in Gosford have all boosted the city and region’s infrastructure and thus, economy. The Kibbiplex project in particular, a massive $650 million project, is symptomatic of how the tired, dilapidated parts of Gosford and the area are now being rejuvenated into sophisticated, cosmopolitan buildings that reflect the changing demographics.
The huge amount of development and construction dollars flowing into the area are proof of the rising momentum that the Central Coast is enjoying.
Finally, the most important aspect to look at is the rising property market. The story of the Central Coast property prices is one of a quiet achiever for many decades that is now exploding into life. Record prices are still being achieved for beach front properties almost anywhere in the area and there’s no end to the number of good news stories. In fact, not only is the Central Coast smashing its own records, it is outstripping some of the other traditional NSW hot spots. In terms of rental yields, some of the best performing rental yields in NSW come from the Central Coast. In November 2015, both Wagstaffe and Killcare were getting 11.6 and 14.1 per cent rental yields respectively for houses.
At the same time, the Central Coast is also beating its bigger brother, Sydney in terms of capital growth. For the last 12 months to March 2016, houses on the Coast grew at an increase of 13.6 percent compared to a 12% increase for Sydney. This phenomenal growth rate is likely to continue. Compare this to the early 2000s when a median house in Wyong went for $390,000 in 2003 to 2013 when it was worth $465,000 - a bare rise over ten years.
While much of this can be attributed to Gosford riding the coat tails of Sydney and being an attractive, proximate neighbour; it’s also important to note that the Central Coast has reinvented itself as a vibrant business hub. Many people will be making the journey to its sun drenched beaches, dense national parks and delightful fishing villages for many years to come.
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