If you’re wondering ‘is Coffs Harbour a growth area’, you’ve probably seen how this region has blossomed over the past decade.
From population growth to a surge in the local economy, more people are recognising how this little city, on the north coast of New South Wales, has emerged as more than just a holiday destination. Put simply, Coffs Harbour is nice to live.
So whether you’re a seasoned investor or a first home buyer, we understand the motive for finding a property that will appreciate over time.
To help you make that decision, we’re going to look into what a growth area is and if Coffs Harbour ticks those boxes.
How to identify a growth area
A growth area, also known as a hotspot in real estate, is where the values of properties are expected to rise within a short period of time.
For property investors, this is obviously a fantastic opportunity. But how do you identify a growth area?
It’s experiencing gentrification
The gentrification of an area is when it may have been overlooked and underprivileged at one time, but now, more people are moving in, bringing in business and infrastructure.
An area experiencing gentrification will have property prices steadily increasing over the past two to three years. The demographic will include young professionals with solid incomes.
New properties, urban developments, cafes and major retailers are a good way indication.
Is Coffs Harbour experiencing gentrification?
Out of Coffs Harbour’s several coastal and rural suburbs, not all have experienced significant gentrification, which means the opportunity for rewarding investment is still present. The areas that have included more of these newer developments are:
- Moonee Beach
- Sapphire Beach
- Emerald Beach
- Coffs Harbour Marina and Jetty Area
- Vall Beach
In these areas, older buildings are being knocked down and redeveloped into upscale residences and apartment blocks. The landscape of real estate in Coffs Harbour is evolving steadily.
Coffs Harbour median house price: $800,000
Coffs Harbour median unit price: $548,000
The consistent draw of vacationers to Coffs Harbour is also a good indication of an area set for growth. More businesses are seeing the revenue opportunities during the summer months but also throughout the rest of the year.
According to Urban, Park Beach is one of the areas to keep your eye on. Located just five kilometres from the Coff Harbour CBD, a lot of its previous social shortcomings have been fixed.
A worthwhile feature is its coast, which attracts both tourists but also those looking for a permanent address. More shopping amenities have been added like Park Beach shopping.
This solidifies the belief that Coffs Harbour is a good place to invest.
It’s a high demand low supply area
When looking for a growth area, the supply demand ratio is an important factor. If the residential developments are reaching a peak and there are few places left to build, chances are, the prices will go up.
Is Coffs Harbour a high demand low supply area?
Here are a few ways to see if Coffs Harbour is in a high demand low supply area:
Rental Yield: an increasing rental yield is, of course, a good sign. This indicates that renters are coming into the market who will probably become homeowners eventually.
According to Real Estate Investar, the median rent in Coffs Harbour is currently at $580 per week and the rental yield is at 3.79%—that’s up 11.53% from last year—a clearly positive sign.
Demographics: when younger professionals with steady jobs are the growing demographic, it often shows that they will become the homeowners eventually as their incomes grow. With time, this part of the population can afford better homes. The target median age for this demographic is around 35 years.
That’s slightly lower than Coffs Harbour’s current median population age, which sits at 43 years.
Population growth: when the area is attracting more residents, the population growth will increase along with it, which means demand will be pushed up as well. That, combined with the increasing income of the population will then bring up the property prices.
Coffs Harbour’s population has experienced steady growth in the past decade. It increased by 4,000 people to 25,752 in 2016—that’s just over one year. It has a general growth rate of 1.13%.
There are large infrastructure developments happening
When there are major infrastructure developments underway, workers are needed for these jobs, who will also need homes. This is a good indication that there will be a rise in housing demand.
Ideally, these projects are already in progress, unlike plans which might not materialise.
Is Coffs Harbour undergoing more developments?
Coffs Harbour is experiencing lots of upgrades in infrastructure.
In 2017, there was a major $6.5 million improvement on the local airport. There was also an investment of $30 million into industrial, commercial and corporate office spaces.
Social areas like the Jetty Foreshore were improved as well, adding more recreational features to the boardwalk and plaza area.
On top of that, there will be developments of the public healthcare amenities with the enhancement of Coffs Harbour Hospital Campus. Areas like operating theatres and the short stay surgical unit will be improved. This is wonderful for the community, who will have access to even better medical facilities.
And when it comes to socialising and entertainment, the Coffs Harbour City Council isn’t holding back anytime soon. The C.ex Coffs International Stadium renovation will make the venue one of the best spaces for sporting events in the region. The community will also benefit from more job supply and attracting support from outside the region.
Furthermore, the Coffs Harbour City Council is dedicated towards supporting new business, offering start up grants through the 6 Degrees venture.
With an emphasis on the environment and sustainability, the local government has a target to reach 100% renewable energy by 2030. It is a forward-thinking city which considers planning strategies for future generations.
Coffs Harbour is also simply a wonderful place to live. The city centre is chock full of shops, cafes and restaurants, not to mention the beautiful nature at your doorstep. If you’re looking for more balance in your lifestyle, this may be the right move for you.
So is Coffs Harbour a hotspot for real estate?
While some areas of Coffs Harbour have already experienced serious growth, others, like Park Beach, have not. This leaves room for motivated investors to take the leap.
With the expected population growth, tourism, high quality of life, and focus on industry services, Coffs Harbour has lots of potential for you to invest in houses and other properties alike.
Whether you’re interested in buying houses, units or land, in Coffs Harbour or elsewhere in Australia, Soho can help you find your next property. Check out our website to access all the available listings in your desired area.