The month in review: Wollongong
By Herron Todd White
May, 2010
Cringila & Wombarra*
(*we will adopt Wombarra as a typical suburb in the
northern beaches)
What type, size, quality, age etc housing is typical for
each suburb?
Cringila is located about 5km south of the Wollongong
CBD. The suburb is bounded by Berkeley, Unanderra,
Lake Heights and Warrawong. A fraction of Cringila is the
Port Kembla steelworks, which employs many people in
the local area. It was the focal point of the region as it
attracted many workers from overseas. Cringila, originally
called Steeltown, was developed between 1930s and
1960s and is characterised by older fibro/clad, fibro
homes and brick dwellings usually of a modest size.
Wombarra is a northern seaside suburb of Wollongong,
located on the south coast, approximately one-hour
drive from the Sydney CBD. Wombarra and its adjoining
suburbs of Austinmer, Coledale, Scarborough, Coalcliff
and Stanwell Park, are wedged between the ocean and
the escarpment. This area is approximately a half-hour
drive north of Wollongong CBD. It is characterised by
a selection of construction styles and ages, all more or
less oriented towards the spectacular sea views available
from higher up on the escarpment, or at beach level. The
main thoroughfare is Lawrence Hargrave Drive, which
links Bulli in the south to Stanwell Park and the adjacent
Royal National Park.
Land area and ancillaries that are usual?
Homes in Cringila are mostly situated on 400 to 600sqm
blocks of land with basic landscaping and minimal car
accommodation.
Wombarra and adjoining suburbs – Land area between
300 and 2000sqm with established to extensive ancillary
improvements with many having pools and extensive
landscaping. Many blocks have moderate to steep
topography.
What are the price points?
Feel free to give some
examples of a typical home, and also perhaps a top
end and bottom end house in each if it’s relevant?
A typical Cringila home can range from $190,000 to
$350,000 depending on its bedroom accommodation
and internal condition, although the majority of sales are
in the $200,000 range. A sale late last year in Fitzgerald
Street was for a clad three-bedroom, one-bathroom
home in fair condition with a single garage under on a
550sqm block. More recently a renovated brick house in
Merrett Avenue sold for $270,000, on a 1000sqm block.
Wombarra has a range between $600,000 and $3,000,000 – it and its adjoining suburbs are well sought after due
to the proximity of the Sydney market. For a house in
Wombarra at entry point price, two to three bedrooms
on a 500sqm block you would be looking at a range from
$560,000 to $800,000. For a house in Wombarra at the
top end, four to six bedrooms, with modern inclusions,
renovated or recently built and near the beach or with
good access and a view, could reach anywhere from
$750,000 to $300,000. These homes have prestige appeal
and offer an exceptional lifestyle close to Sydney and
near the ocean. A recent record sale at Wombarra of
$3 million shows the depth of the market, with a recent
Lawrence Hargrave Drive sale at $616,000 indicating
where it starts.
What is the buyer profile for each?
Cringila mainly attracts the first homebuyers and
investors/renovators, as property prices aren’t as high
as surrounding areas. A lot of the properties are rented
out to tenants, or are long-term family homes. There is
surprisingly little churn.
Wombarra is one of the more sought-after suburbs of the
northern Illawarra market. The demographic is mainly for
second home purchasers or families looking to upgrade
to a larger size home in a prestige area. There is also a
long established market from Sydney buyers looking for a
holiday home on the south coast but within easy reach of
their principal residence. This part of the Illawarra offers
all that.
What features/detractions make these suburbs the
cheapest and most expensive?
Cringila - Older style homes with clad/fibro construction,
no gentrification happening to date, some public housing,
close to steel works. Still close to employment centres
and has its own rail station.
Wombarra – established beachside suburb – with many
architect designed homes, good ocean views and/or
access to beaches, local shops nearby, close to Sydney
and on electric rail line.
Given the current climate (some returning confidence
but with interest rate rises looming), what are the
prospects for each area?
Cringila offers possibilities of redevelopment – knock
down and re-build. It is an inexpensive but central
area to start out in, or invest in. Rental returns are at
approximately $220 to 280 a week for a three-bedroom
dwelling. Investors have not been prominent or seen as trying to get into the market but the long-term prospects
are promising.
Lifestyle is the big attraction of these far northern suburbs,
and Wombarra is no exception. Recently we have been
seeing properties sold soon after they have been listed
on the market – and prices are increasing. Holiday rental
returns can be $2000 to -$3000 per week in the top
season, and generally the properties will rent well on a
long-term basis. Prices were depressed however after the
end of 2003 and have only begun a slow rise since the
latter part of last year.
Could you advise what might be a good and what
might be a bad investment in each location?
Cringila offers good investment potential through
purchasing a dated clad home at a low price and
renovating the property. Cringila is good for rental
returns so a renovated residence can bring back a good
investment return. Land can still be purchased well
under $200,000, so the numbers will still work on a new
dwelling as well (subject to size and cost).
Sea views and beach access are the keys to properties in
this part of the Illawarra and Wombarra is no exception.
Any cautions you would attach about each suburb
(e.g. new train line coming through? Housing built on
mine shafts?? Etc)
Cringila is close to the BlueScope steelworks and therefore
some may see it as a detriment. In Wombarra, many
blocks back Sydney train line, and this is escarpment so
any prospects of land-slip need to be considered. Always
seek a S149 Certificate when purchasing.
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