The 2025 property market outlook for the Central Coast is shaping up to be a year of steady growth and increasing competition, with several key factors set to influence the local property landscape for both buyers and sellers.
After weathering the storm of consecutive interest rate hikes and limited housing stock throughout 2023-2024, we’re now entering what could be a more balanced market phase.
Buyers who’ve been sitting on the sidelines might find new opportunities as confidence returns, while homeowners can breathe a small sigh of relief with the prospect of easing mortgage pressures.
As a buyers agent on the Central Coast, I watch these market changes closely, and I’d like to share some thoughts on what we might expect in the year ahead.
Market Overview and Key Drivers for 2025
Buyer Confidence and Demand Surge
The first interest rate drop has set a positive tone for 2025, increasing buyer confidence and competition.
Over the past six months, the Central Coast has seen a gradual rise in buyer activity, which is likely to continue as the year progresses.
With the potential for further rate reductions, demand from buyers is expected to strengthen, leading to increased competition, especially in the more affordable price brackets.
This heightened demand could put upward pressure on property prices if supply remains tight.
Supply Constraints and Impact on Prices
The biggest unknown or element that I’ll be watching is how much stock actually comes to market.
Low stock levels have been a consistent challenge, and the market’s direction will largely depend on how vendors respond to the growing demand.
If sellers are hesitant to list properties, supply will remain limited, creating a seller’s market with rising prices. On the other hand, an influx of new listings could balance the market and moderate price growth.
Prediction: If supply doesn’t catch up to demand, expect upward pressure on prices, particularly in high-demand segments like first-home buyer and investor markets.
Economic and Political Influences
An important consideration for the 2025 market is the upcoming election.
Historically, property markets experience a temporary pause around election time as buyers and sellers adopt a “wait and see” approach.
This election-related hesitation might create good buying opportunities for those prepared to move while others hold back. Once the election concludes, expect the market to return to full steam ahead.
The Impact of Interest Rate Cuts on the Central Coast Market
With the Reserve Bank of Australia announcing the first rate drop after a long period of increases, we’re finally seeing some positive movement that will influence the 2025 market. This reduction signals a turning point that has already begun boosting buyer confidence.
These cuts will likely encourage more sellers to enter the market, helping to balance the growing buyer demand.
They’ll also slightly improve the borrowing capacity for potential buyers, opening up more options as serviceability calculations improve.
Check out our article on this topic for a more detailed analysis of how the recent interest rate cuts will affect the Central Coast property market.
Property Price Projections and Market Trends
1. Moderate Growth Expected
I think property prices will grow in 2025, though I don’t foresee a major boom. Instead, we’ll likely see steady upward pressure on prices driven by increased buyer demand.
How much prices actually rise will largely depend on vendor behaviour – specifically, how many decide to list their properties for sale.
Price Outlook:
- Gradual Upward Trend: Expect steady price increases as demand continues to rise.
- No Major Boom: Growth will be moderate, avoiding the rapid price hikes seen in previous property cycles.
2. Competitive Price Brackets
Different price segments are likely to see varying levels of competition:
- $700k – $1M Range: Expect strong competition as this price bracket attracts first-home buyers and investors looking for affordable properties.
- $1.5M+ Range: Higher-end properties are likely to see less competition due to a smaller pool of buyers, creating potential opportunities for well-prepared buyers.
What This Means for Buyers and Sellers
Advice for Buyers:
- Buy When Financially Ready: I always tell people to buy when they can. It shouldn’t be about timing the market. If you have your finances in order and can afford the repayments, it’s a good time to buy.
- Act Quickly and Competitively: In a high-demand market, speed is crucial. Be prepared to make quick, clean offers to stay ahead of the competition.
- Focus on Competitive Price Ranges: Expect fierce competition in the $700k – $1M range. Plan your strategy accordingly.
- Opportunities in Higher Price Brackets: For those with larger budgets, the $1.5M+ range may offer less competition and better negotiating power.
Advice for Sellers:
- Capitalise on Buyer Confidence: With buyer competition heating up, now is a strategic time to list properties.
- Price Strategically: Attract motivated buyers by setting competitive prices, especially in highly contested segments.
- Consider Timing Around the Election: Listing properties before the election may capture buyer demand, while listing afterwards could benefit from a post-election market rebound.
Final Thoughts and Recommendations
While buying 6-12 months ago would have been ideal, it’s certainly not “too late” to enter the market.
Property should be viewed with a longer-term outlook, especially for your own home, where creating memories and security for your family is more important than perfect market timing.
For investors, knowing your chosen market well and buying smartly within that market is the key to successful property acquisition. If you buy well, it doesn’t matter where we sit in the property cycle.
If you’re considering entering the Central Coast property market in 2025 or want assistance buying in a competitive environment, I’d be happy to help.
As a dedicated full-service buyers agent, I can provide personalised guidance based on your specific circumstances and goals.Feel free to reach out for a free, no obligation conversation about your property plans for 2025.
