NSW coastal property market forecast for 2025

Article by Camilla Jones 3 June 2025

The coastal New South Wales (NSW) property market has been a focus of investment, residential buying and tourism for decades. 
 
With stunning beaches, vibrant communities and strong infrastructure, coastal towns continue to be sought after. 
 
As we move through 2025, there are some significant trends shaping the market, from interest rate movements to population growth and supply limitations. 

Sustained growth in major coastal hubs 

The coastal regions of NSW have seen sustained price growth during the past few years, particularly on the Central Coast, South Coast and Northern Rivers. 
 
Economists predict that this trend is about to repeat, driven by lifestyle housing demand and work-from-home convenience. 
 
Suburbs such as Shellharbour, Byron Bay and Port Macquarie are set to maintain strong buyer demand, particularly among buyers seeking beachfront living at significantly less than the price of Sydney. 
 
The South Coast, including Sanctuary Point, is also attracting buyers in search of affordability and relaxed coastal living.

Interest rate cuts and market confidence

One of the strongest drivers of the 2025 coastal NSW market is movements in interest rates. 

While rates have been high in recent years, economists expect still further cuts, which would enhance buyer confidence and increase liquidity in the market. 
 
Clint Harris, a real estate agent at The Agency Central Coast, believes that cuts in interest rates will fuel more spending and by extension, boom in property sales. 
 
It could be particularly well for first-home buyers and investors who are eager to get into the coastal market. 

Supply and demand issues

Despite strong demand, housing supply remains a problem in all but one coastal area. Limited building approvals and robust buyer demand suggest that prices may still rise, particularly in favourite suburbs. 
 
Analysts warn that undersupply could push prices over the national average, rendering cost-conscious purchasers less able to purchase. 
 
However, regional infrastructure initiatives, such as new roads and transport links, may mitigate pressure by improving links to coastal resorts. 

Strength of rental market 

The NSW coastal rental market will remain strong, with tight demand and limited supply driving rising rents. 
 
Investors looking for stable rental yields can get them in emerging coastal towns, particularly those with job hubs and growing infrastructure. 

Conclusion 

The coastal NSW property market in 2025 will be resilient and dynamic, with high rental demand, sustained price appreciation and good buyer sentiment. 
 
While shortages of supply may be problematic, interest rate cuts and infrastructure renewals may help talk the market into equilibrium. 
 
For buyers and investors, NSW’s coastal areas remain an option, with lifestyle potential, long-term growth prospects, and high rental returns. 
 
In the course of the year, observing trends and economic shifts will be vital to make informed property decisions. 

Want to know more about other market predictions? Read about what’s happening in regional NSW here: https://www.propertyme.com.au/blog/what-are-the-regional-market-predictions-for-2025