|
The month in review: Wollongong
By Herron Todd White
April, 2010
Wollongong, with a population around 230,000
(excluding Kiama and Gerringong), is 80 kilometres south
of Sydney, on the coast, set against the backdrop of the
lush Illawarra Escarpment. The drive south from Sydney
to Wollongong skirts the Royal National Park and then
some impressive coastal scenery through the seaside
villages of Scarborough, Wombarra, Coledale, Austinmer
and Thirroul. The Seacliff Bridge at Coalcliff has become
firmly entrenched as a must-see in the area.
Although Wollongong is mainly an industrial town with
steel, copper, coal, electricity and rural enterprise, the
nearby mountains have helped maintain a country town
feel to the city. The inner suburbs (around the CBD) offer
well-priced properties close to the CBD, the university,
hospital, major transport links (road and rail) and… the
beach!
Tourist destination areas are generally the northern
suburbs squeezed between the mountains and the
coast, with their pristine beaches and temperate climate;
the inner city area around North Wollongong, and the
villages of Shellharbour, Kiama and Gerringong to the
south. The Shoalhaven area to the south of this is a
completely different story – and one that we will cover in
future editions.
Up north, the basic home is going to start around
$550,000 and the villages provide an alluring lifestyle all
year round. Units are hard to come by up in these suburbs
north of Thirroul, but there are still some opportunities
for townhouses in the high $300,000s. A recent sale
in Wombarra at $3 million indicates the depth of the
market.
One of the picks for the holiday ‘shack’ buyer to get into
now are the older suburbs of Fairy Meadow , Towradgi,
and East Corrimal just north of the city area ; localities
with older housing quite close to the CBD, but also
located within a short distance to the beaches. Prices here
will start around $400,000, but the upside are the benefits
that will accrue from the infrastructure developing around
them, and the lifestyle at the doorstep. In North ‘Gong’ as
it is called by the locals, an older (1970’s) first floor walk
up 2 bed unit only 3 blocks to North Beach, and similar
distance to the Uni, will start in the high 200,000s. New
units generally start from $400,000 and stock is beginning
to thin out after the glut of the past 2 years.
Kiama and Gerringong, to the south of Wollongong,
are the jewels of the area. This area is favoured for its
magnificent ocean views, the famous ‘blow-hole’, beaches
and the river at Minnamurra. Kiama has a historical town
centre which has been mostly retained by strict town
planning controls and attracts many tourists. Older units
are priced from $300,000 and entry level for a house is
now more than $400,000 in most areas.
To the west in the rolling green hills, is Jamberoo, an
historical township based around dairying but now a
sought after location for tourist and sea-changers alike.
It has the famous Minnamurra Rainforest and Falls, and
for the younger at heart, the Jamberoo Waterslide Park.
Just up the mountain towards the Southern Highlands,
the recently opened ‘Illawarra Fly’ tree top walk and
viewing platform is now established as one of the area’s
big attractions. Prices in Jamberoo will start just above
$400,000.
By far the highest proportion of holiday homes in the
Illawarra are purchased by Sydneysiders, with some
country buyers and to a lesser degree Canberra investors
and retirees (most of whom haven’t yet discovered the
beauty of the area). ‘Sydney Royalty’ tends to purchase at
the top end, well out of the league of the basic holiday
shack buyer.
Buyers are mixed in their choice of properties but we see
that the older house on a reasonable sized block of land
is the preference, then the two to three bedroom unit.
This is particularly so around North Gong. People are
purchasing units as investments here, but renting them
out with a plan to make a permanent move in five to 10
years’ time.
The market has been flat for more than two years now
but signs are appearing that the worst may be over.
Opportunities still exist and we are predicting steady
not explosive growth given the presence of rate hikes.
These, combined with a lack of confidence, were the big
killer in prices in late 2007 and 2008, and many people
off-loaded their holiday homes in an effort to shore up
the finances in their existing dwelling. In the good times
people were taking money out of the stock market to
invest in property, and while another property boom may
be some way off, the perception was that property prices
were only going to increase.
Early last year was the time to buy given the recent gains
and confidence returning to the market. The holiday
home sector is never immune to ups and downs and it
would be wise to consult your local valuers when trying
to determine the true value in any unfamiliar market.
All in all, the Illawarra region is conveniently located one
hour drive south of Sydney and offers some of the best
attractions to be found on the east coast of NSW.
|
