Wollongong

The Smartline Report – December Edition

The month in review: Wollongong

By Herron Todd White
December 2016

The year started off strongly in January 2016 with continued strong growth and buyer demand for residential property in the Illawarra. From this strong start it was our prediction that the heat in the market (experienced since mid 2013) would diminish and sales would slow with the environment equalising from the then seller’s market being experienced. As 2016 has progressed, any possible signals we have noticed of things slowing down have quickly been surpassed with numerous strong sales results. As at the time of writing the residential market appears to be as strong as it has been at any time during this strong growth period.

An example of the market remaining strong are two properties on Spinks Road in East Corrimal of identical block sizes and comparable improvements. The first property sold in July 2016 for $893,000 and the second just recently at auction in November 2016 for $950,000. This represents a four month growth of 6.4%.

The extent of the strong market has been widespread stretching from Helensburgh down into the Shoalhaven. Nowra and surrounds have enjoyed sustained growth for the first time in many years. RP Data reports that the median house sale price rose from $301,500 in January 2016 to $383,000 in October 2016 and from $415,000 to $468,000 for the wider Shoalhaven LGA.

Of interest in the prestige market is a property in Thirroul. This substantial residence set at the base of the escarpment on 5,306 square metres sold in December 2015 for $2.87 million but was listed by the new owners for sale again in April 2016. A new sale was negotiated and the property exchanged in September 2016 for $2.6 million. This is a 9.45% decrease in nine months however we must note that the prestige market (over $2 million) can be rather fickle with a property often requiring the right buyer at the right time and extended selling periods are common.

Market factors driving the Illawarra residential property market throughout 2016 include steady employment, the strength of the Sydney property market and the official cash rate reducing from 2% in January 2016 to the current 1.5%.

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Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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