Why Invest In Northern Beaches Property
If you are looking for a place with laid back nature, Northern Beaches is the place to be. From Manly to Palm Beach, these coastal neighbourhoods are all about lifestyle, surfing and incredible liveability.
The Northern Beaches have natural beauty, a string of popular surfing beaches and community villages amongst the sand and surf.
An investment on the Northern Beaches also happens to be the perfect combination of capital growth and rental yield.
6 Reasons Why We Love Northern Beaches Property Investments
DEMAND: The Northern Beaches all is all about lifestyle. There has been a large increase in buyers from other suburbs such as the inner west and upper North Shore visiting open homes since Covid has forced people to work at home. Families are realising that they do not need to travel into the city on a daily basis for work and are choosing places such as the Northern Beaches where travel to the city used to be a deterrent and instead opting for a lifestyle where travel time has been swapped for a lunchtime surf or a dip in the ocean.
GROWTH: Relatively strong 7% rental yield growth average. Low stock levels especially for family homes and increased demand has seen several suburbs on the beaches over the past 12 months continually have the most searches of any property in NSW according to RP Data
BUILDING – The newly built Northern Beaches Hospital in Frenchs Forest, creative commercial businesses and waterparks create demand for rental properties in the entire Northern Beaches precinct
TRANSPORTATION: Your own Northern Beaches B-Line Buses with only 9 stops goes from Mona Vale to Sydney CBD.
LIFESTYLE: The area continues to upgrade and improve the quintessential beach lifestyle with social amenities.
Walks - The Northern Beaches offers some amazing walks - Long Reef Headland Walk , Palm Beach Lighthouse walk, Manly Dam walk and the Palm Beach to Manly coastal walk to name a few.
Surf - The Northern Beaches is home to some world famous surf breaks from Manly to Curl Curl and Narrabeen, to Palm beach there is generally a wave on offer for all levels
Boating -If you don't like the surf, there is the still water at Pittwater and Manly , Narrabeen and Manly Dam where on the weekends you will find sailing and boating enthusiasts
Restaurants - There are dozens of restaurants for all tastes and budgets from newly opened family-friendly Fratelli Fresh at Manly to the famous Jonas at Whale beach
Parks - From dog-friendly to child-friendly to sports enthusiast, the beaches has an open space to cater for all
CULTURE: Renovation of Northern Beaches iconic spots including The Newport and The Collaray adds to the number of hotspots worth exploring.
There’s Property to Suit Everyone
It’s clear to see that people want to live on the Northern Beaches and will even commute to enjoy this lifestyle. The 2019 Population Projections indicate that the population of Northern Beaches is estimated to increase by 31,200 people between 2016 and 2041, from 265,450 to 296,650. (source: Northern Beaches Council)
Here’s what’s unique about some of these Northern Beaches suburbs.
Manly
Just 30 minutes by ferry ride from the CBD, Manly reflects the sparkling views from the Sydney Harbour on its West and the Pacific Ocean on its East. There’s a lively community based on a shared love of the outdoors, including biking, surfing, swimming and more.
You’ll see some of the oldest homes built in the late 1800s, Federation homes and even art deco or nautical themes. That’s not to say there isn’t anything modern because here you’ll also find elegant architecturally designed homes.
Popular because of excellent views and the historical hoeManly’s rich history is evident in the homes on offer. From the oldest homes built in the late 1800s, Federation homes and art deco and P&O (or nautical deco) examples, to modern architect-designed abodes, homes here are generally well-presented.
It’s a market in high demand with more and more apartments springing up though they are generally kept to three or four storeys high to preserve those excellent views for the whole community.
Freshwater
Formerly known as Harbord, Freshwater strikes the balance between being affordable yet still close enough to the city to be accessible. The suburb features one of Sydney’s most popular beaches and a wide range of amenities. Additionally, the shopping precincts of Dee Why and Manly are nearby.
As with any beach suburb, views of the ocean are always popular, as is easy access to the beach - but will command a premium. The area is quickly growing as an investment area with far fewer blocks of units than nearby Dee Why and is a short walk to both Curl Curl and Freshwater beaches.
If you’re an astute investor there’s value to be created here by renovating one of the 1970s units that are prevalent in the suburb.
Brookvale
Brookvale has logged nearly 30% growth over the last 12 months alone (Core Logic, April 2020) taking the median unit price to just under $600,000. Although apartment values are high, the benefits for investors could outweigh this cost since the average weekly rent rate comes in at $560 and returns are strong at almost 5%.
There’s definitely strong demand driving competition in the suburb with Brookvale’s proximity to Sydney CBD and its status as a major industrial hub.
Dee Why
Dee Why is often regarded as the centre of the Northern Beaches and is still only 20km from the Sydney CBD.
If you’re looking for apartments, then you’re in luck - as more than 75% of dwellings in Dee Why are flats or apartments (Source: realestate.com.au). If you’re after a house, there’s a choice of older-style homes, renovated masterpieces and even new houses so there’s something to suit all buyers, even for those seeking that prized waterview.
Curl Curl
Curl Curl is a market with some hidden gems and of course a great surfing beach. It is predominantly a house market with many large prestige homes with excellent sea and beach views along with more traditional beach homes in the flatter areas around Curl Curl lagoon and the sports fields.
With a bit of careful selection and TLC, there are quite a few 1960s and ‘70s homes ripe for renovations or a complete knock down and rebuild.
Narrabeen
Over the last year, property investments in Narrabeen have given investors a capital gain of -3.66%. This compares badly with the 1.68% for NSW as a whole.
However, based on five years of sales (Source: realestate.com.au), Narrabeen has seen a compound growth rate of 3.6% for houses and 3.7% for units.
Advertised rents are around the $1050 mark per week – giving a return of 2.37% based on the median price in Suburb (Core Logic, to April 2020)
For more information about Northern Beaches property, why don’t we have a chat to find out exactly what you’re looking for. Feel free to schedule a no-obligation call here
Buying property on the Northern Beaches will also have its pitfalls. For example, if you’re paying a premium for new-build apartments, you’ve got to be prepared to hold onto the property for longer for the capital return.
And if you’re renting them out it will also be very competitive which means yields will take a hit.
Make the best property investment decision, especially with today's market. Let our team help you. Book a complimentary consultation at a time that suits you.