The Central Coast commercial property market has been experiencing a boom of its own following the recent boom in residential real estate on the Central Coast, and off the back of the commercial property boom in the Sydney market (that’s a lot of boom!).
Just as the residential sector is starting to cool off and return to ‘normal’ market conditions, commercial real estate has reached new heights in price and popularity on the back of historically low interest rates, strong consumer confidence and investors seeking better returns than can be found in residential investing. This is to only name a few contributing factors.
Our Director, Dan Mason, here at Chapman & Frazer Commercial Real Estate said business was booming, with more interest and activity over the past 6 to 12 months than previous years, demonstrating the strong level of confidence from the market.
Despite much tighter credit conditions over the past several months, we are still seeing strong investor enquiry and activity in our market, as well as continued high levels of demand from buyers looking to occupy the property they purchase. We have achieved some great ‘off market’ transactions in recent times with buyers from both of these market segments.
While there may still be some pessimism and concern in certain corners of the market (bear in mind that we see ‘doom and gloom’ headlines even in the best market conditions), we are happy to report that we are seeing first hand evidence that business confidence is generally high with clients from a wide range of industries continuing to grow and plan for a bright future.
We have briefly highlighted a few reasons for the Central Coast commercial property market having seen a surge in popularity and confidence, but we should not overlook the revitalisation of Gosford as another strong contributor. In the words of Planning NSW; ‘Revitalisation of Gosford City Centre as the regional capital of a healthy, prosperous and connected Central Coast is a priority of the Central Coast Regional Plan 2036 and the Minister for Planning’. This endorsement and support from the government only helps to underpin market confidence.
Aside from Gosford being a hive of recent investment and development activity, there have been other commercial hot spots such as Woy Woy, Erina, West Gosford, Somersby and Tuggerah that have been heavily targeted by investors from all walks of life.
Agents are seeing everyone from savvy out-of-area investors to those using self-managed super funds (see our Blog post; Investing your super into Commercial Real Estate) and even mum & dads capitalising on the equity of their homes.
Driving around the Central Coast will show you how much development and growth is happening. Places like Erina and West Gosford have grown substantially in the last 5 years. Many businesses are relocating from core areas around Sydney, taking advantage of cheaper rental and purchase prices, as well as a strong local workforce, while still having the convenience of a relatively quick commute back to the city.
Tuggerah Business Park
The Central Coast has turned into a maturing market for the investor. With a better understanding of what the commercial markets offer it’s leading many to buy their first commercial investment here on the Central Coast.