In relation to the Central Coast, I have a number of IPs there myself – so I am a little biased (just disclosing this upfront).
Since COVID-19 we have seen:
1. A number of buyers spending up big $1M to $2+M properties at the beach areas, with a significant portion of these buying as holiday homes for themselves and to airbnb.
2. A lot of PPOR buyers who have discovered that (like many now), they can WFH and only go into the office (Sydney CBD) 1-2 days per week and even avoiding the traffic peak hours. So they are enjoying a sea-change or tree-change on the Central Coast for much less money than they’d need to spend in Sydney for the same kind of property.
3. A significant number of buyers (investors) wanting house + existing granny flats for around the $650K – 850K mark, where the rent more than covers the mortgage repayments because there are 2 x lots of rent from just 1 x property & IR’s are so low.
4. There are many more buyers than sellers atm – so vendors are hanging out for, and getting sometimes, higher prices (due to stock shortages). So it is not uncommon for properties to sell above the guide price (which puzzles many FHB’s who are also back in the market in a big way). Also good properties, priced right, often sell the afternoon of, or the Monday following, the first Open Home. There are still those dreamers who think their $700K property is worth $800K – and these properties do not sell.
5. Buyers searching for a baaaaargain mate, are not seeing them (bargains). The fear factor due to the COVID-19 pandemic, seems to have little impact on prices. There was an initial small drop very early on, but now, every CG chart I’m looking at, has a kick-up. Perhaps this is due to virus-fatigue (people are ‘over it’). Perhaps news of the Russians & Chinese having recently announced they have a vaccine and even Australia saying they have something very promising that they are in the human testing phase of right now, has put concerns to rest?
6. My feeling is that we may be at the beginning of another mini boom, which I’ve seen a number of times in the past, that happen for no logical reason. There are always ‘opportunities’ in any market. The ones I foresee coming may possibly be:
a. The JobKeeper recipients coming off welfare in September (those who’s companies no longer qualify as a JobKeeper employer).
b. Banks encouraging mortgage holders to sell their property, if they would be struggling to pay their mortgage, as the 6 month repayment holidays come to an end.
Only time will tell.