“Improved affordability is great news for property buyers, and particularly first timers, armed with a healthy deposit,” said Angus Raine, CEO, Raine & Horne. The HIA attributed improved affordability to stable interest rates since November. “So, it was pleasing that the Reserve Bank of Australia left rates on hold once again in early June,” said Mr Raine.

Meanwhile public policy is set to help drive up property prices in Sydney’s Hills district, following the NSW government’s green-light for the North West Rail Link, connecting Rouse Hill to Epping via Castle Hill. “The North West Rail Link will prove a major bonus for local homeowners in coming years, by increasing available transport options for city commuters, which are currently limited to private buses and the M2 road link,” said Damian Hickey, Principal of Raine & Horne Castle Hill.

Tourism mecca Port Macquarie, on the NSW mid-north coast, is also flourishing with infrastructure investment and employment generating competition for local property. Headlining the town’s enhanced status as a regional hub are two projects – the upgrading of the Oxley Highway, which connects Port Macquarie to the Pacific Highway, and the planned expansion of the Port Macquarie Airport. “The project to transform the Oxley Highway into a dual carriageway commenced in 2009, and is due for completion by the end of the year,” said Diane Deland, Principal of Raine & Horne Port Macquarie.

Yet it is the proposed airport upgrade that could have the greatest impact. “The Port Macquarie Airport was upgraded in 2008, to accommodate growth in passenger numbers, with expanded runways and a new departure lounge,” said Ms Deland. These infrastructure developments, as well as increasing job prospects with major employers such as Country Energy and the growing local small business sector, are creating competition in the Port Macquarie property market.

Conversely, the growth of NSW’s Central Coast property market could be compromised by the Federal Government’s decision to withdraw $150 million in funding for the F3 to M2 orbital road project. In the May budget, the government’s contribution to a feasibility study for the project was removed from forward estimates. However Brett Hunter, Principal of Raine & Horne Terrigal – Avoca Beach believes the Central Coast’s property market fundamentals are still strong, despite the axing of the feasibility study.

“Central Coast median property prices measure up well against Sydney’s Northern Beaches and people looking for a price-competitive home option should still consider our region,” he said. “Add the fact that the F3 is a great road to travel on, with scenic aspects over the Hawkesbury River, Brooklyn and Mooney Mooney, and we are hopeful the well-tracked migration route from Sydney to the Central Coast will remain strong.”

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