Suburb Snapshot: Caves Beach
In the coastal embrace of Newcastle and Lake Macquarie, the suburb of Caves Beach epitomizes a lifestyle where the charm of seaside living, and the promise of robust property investment converge. As we look into the latest property market guide for this jewel in the crown of the Newcastle and Lake Macquarie region, we observe a landscape ripe with opportunity for investors and a serene haven for owner-occupiers..
Suburb Snapshot: Caves Beach
Nestled within the region of Newcastle and Lake Macquarie, Caves Beach offers a unique blend of coastal serenity and suburban convenience. A mere 132 kilometres from Sydney and only 29km to the bustling Newcastle CBD, this suburb provides a tranquil retreat without sacrificing the vibrancy of city life. Its stunning beach, namesake sea caves, and close-knit community feel make it an enviable place to live and invest.
Education & Community Life
The Caves Beach Area boasts a variety of educational institutions, catering to families and ensuring that the community’s educational needs are met from early childhood through to secondary schooling. This educational fabric, woven into the suburb’s community, underpins its desirability for family-oriented buyers. In close proximity are:
Caves Beach Early Learning Centre
Cafes, Bars, Restaurants, and Public Spaces
The culinary scene in Caves Beach is intimate yet diverse, featuring quaint cafes and restaurants that showcase local produce and offer stunning ocean views. Public spaces like parks and beaches are meticulously maintained, offering residents and visitors alike ample opportunities for recreation and relaxation. Within a short stroll are:
Property Market Guide
The real estate landscape in Caves Beach is predominantly composed of detached houses, accounting for approximately 78% of property types, while units and apartments make up about 10.8%, followed by townhouses and villas at 10.2%. The current median list price for houses stands steady at $1,205,000, reflecting the stability and desirability of this coastal suburb. This figure aligns with the median from three months ago, with a subtle dip from $1,260,000 a year prior.
Investors will find the rental market equally compelling, with a median lease price now at $700, incrementally up from $687 12 months ago. The rental yield sits at an appealing 3%, which, when combined with a low vacancy rate of 1.49% – down from 2.01% three months ago – signals a strong demand for rental properties and a potentially competitive market for renters.
Despite the unchanged median list price over the last 12 months, the property market has shown a significant 27% growth over the past 24 months, with an impressive annual growth rate of 13.04% over four years. These figures suggest a robust growth prospect for Caves Beach, encouraging for long-term investment strategies.
Market Dynamics
The average days-on-market (DoM) for properties is currently at 90 days, indicating a market where buyers take their time to commit, providing an opportunity for negotiation. However, with an inventory level at 1 month, the market is tight, which could apply upward pressure on prices in the near future, favouring sellers.
Financial Considerations
Caves Beach showcases a blend of affordability and luxury. The average household weekly income is $1,628, and with the rent affordability sitting at 42.99%, tenants find themselves in a market that, while not the most affordable, is sustainable given the lifestyle offered. Buy affordability is currently at a ratio of 0.13, indicating a market accessible to buyers with accumulated wealth, a testament to the suburb’s status as a premium coastal enclave.
Investment Potential
With such promising indicators, Caves Beach stands out as an investment hotspot. The property market here offers diversity, from luxurious beachfront homes to more modest family residences, ensuring a range of opportunities for investors with different objectives.
Final Thoughts
Caves Beach’s property market remains buoyant and enticing. The mix of a coastal lifestyle, consistent property values, and positive growth indicators position it as a prime location for those looking to invest in the Newcastle and Lake Macquarie region. Whether for investment or to call home, Caves Beach offers a compelling proposition, with the promise of growth, stability, and a lifestyle coveted by many.
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Disclaimer
Park Avenue Property Group, together with their directors, officers, employees and agents have used their best endeavours to ensure the information passed on in this document is accurate. However, you must make your own enquiries in relation to the information contained in this document and seek advice from your financial advisor, broker or accountant to ascertain its application to your circumstances.
