Wollongong February 2017

The Smartline Report – February Edition

The month in review: Wollongong

By Herron Todd White
February 2017

As the new year commences we find ourselves asking the same question as at the start of 2014, 2015 and 2016. Will the residential market slow down this year? Strong growth commenced in Wollongong in mid 2013 and each Christmas break has failed to dampen the market, with the new year often starting as strong, if not stronger. Demand for stock and sale price increases flowed down the coast to the Shoalhaven which also saw substantial growth in 2016.

Strong buyer competition looks set to continue to drive prices up through the early part of the year.

We believe the major factors that may slow down the market could be interest rate rises along with tighter lending regulations. Until these factors come to light, we predict that the Illawarra residential property market will continue to perform strongly. There is good demand across all price points and locations from basic cheapie $300,000 dwellings in Sanctuary Point through to prestige properties in the Northern Illawarra beach suburbs and Hyams Beach.

2017 will continue to see the marketing or construction of a number of large unit complexes in the Wollongong CBD including Parq on Flinders Street (221 units), Signature on Regent Street (125 units) and Crown Wollongong (317 units) among others. There have been concerns voiced over off-the-plan unit sales in capital city CBDs recently by the major banks and whilst Wollongong doesn’t have the same scale, the CBD has had a massive influx of unit supply in the past four years. Any shift in the property market could severely impact these projects with off-the-plan sales stalling and settlement risk increasing.

Construction of the Berry Bypass will continue through 2017 and into 2018 with new passages of road being released when completed. This work is decreasing the travel time between Nowra and Wollongong making the distance between the two locations more convenient. As work progresses it is expected that the property markets will be more closely correlated in the future and Wollongong investors and owner occupiers who are seeking affordability will head to the Shoalhaven in larger numbers with Wollongong median prices continuing to increase.

www.smartline.com.au

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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