The month in review: Wollongong property market update
By Herron Todd White
New residential construction is happening predominantly within the new residential subdivisions in the Illawarra region.
Major subdivisions are located in West Dapto (Wongawilli, Kembla Grange and Horsley), Calderwood/Tullimbar, Shell Cove and South Nowra. The going price for a lot in Shell Cove can be anywhere from $400,000 to $800,000 depending on size, location and proximity to the new marina. Lots of around 700 square metres are currently selling for just under $300,000 in South Nowra. With the residential market downturn, vacant lots at West Dapto and Calderwood/Tullimbar have taken the biggest hit. The current price point for West Dapto is $350,000 for a level 450 square metre lot and for Calderwood, is $325,000 for a similar lot. These are down from $425,000 and $400,000 during the peak of the market. Oversupply and weaker demand are the contributing factors to the decline in values in these areas and at the current time, the slide is continuing.
The competition between project style builders in these locations is high. Each of these locations has display homes for customers to inspect. Current rates per square metre for the living areas of a new dwelling on a level lot are approximately $1,500 to $1,750 (excluding external areas and ancillary items). Rates vary due to the inclusion of things such as floor coverings, air conditioning and client specific extras. Overall build costs for a standard 160 square metre four-bedroom, two-bathroom house can be around $325,000 to $375,000. Expect costs to be higher if the lot has any sort of a slope as excavation and site costs add additional work for the builder.