Half price NSW Central Coast apartment sale highlights regional coastal property malaise

The most affordable NSW property sold at the weekend was 20/1 Tuggerah Parade The Entrance at $235,000.

The two bedroom, two bathroom unit (pictured below) last traded at $499,000 in a 2008 off-the-plan sale.

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Not surprisingly the Wyong district features as the greater Sydney municipality with the second highest proportion of properties selling for a loss across the country, according to a new report, with 16.6% of June quarter resales selling for a loss.

RP Data's latest Pain & Gain report found only the Gosford market to have suffered more in their study of resale prices, with 17.1% of transactions selling at a loss. 

Across Sydney 6.2% of sellers recorded a loss. Regional NSW was double at 13.5%, with the Richmond Tweed district the highest at 25.1% followed by the mid-north coast at 18%. 

The highest proportion of loss making re-sales were located in the Gold Coast (36.3%); Far North Queensland (34.6%) and the Sunshine Coast (29.9%).

The weekend's resale at The Entrance reflects the RP Data report finding that the majority of the loss-making sales were apartments based in lifestyle regions. 

The weekend sale came five years after its off the plan purchase and four years after the 2009 completion of the Riviera complex (pictured below), but there are many Central Coast buyers caught up, with even earlier purchases, in the continuing tourism coastal apartment property market malaise.

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It extends back to vendors still unable to secure the prices paid in the 2003 boom.

I had a look at the 25 unit Riviera complex and note the weekend sale was the seventh resale in the Tuggerah Parade block at huge losses over the past two year. RP Data reported the median Wyong municipality loss during the June quarter was $30,000, but these are all way higher over the course of the past two years.

The biggest drop was 60% when a three bedroom unit bought in 2009 for $700,000 resold in 2011 at $280,000.

A $650,000 purchase in 2009 also resold at $300,000 in 2011.

A $610,000 purchase in 2008 resold at $280,000 in 2011.

A two bedroom that fetched $550,000 in 2009 resold in 2012 at $250,000.

A $550,000 purchase in 2009 resold in $240,000 in 2012.

A $499,000 acquisition in 2009 resold at $235,000 in 2012.

The complex has a huge swimming pool, decked out with BBQ and lounge areas. There is an onsite gym and games area as well as underground parking.

You can't tell me that these sales aren't at under replacement value.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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