Wollongong

The Smartline Report – July Edition

The month in review: Wollongong

By Herron Todd White
July 2015

The Illawarra property market has continued its strong growth over the course of 2015 and has certainly picked up the pace in the past six months. Local agents are advising that competition has become more fierce in some sectors of the market with buyers showing less objectivity when making the purchasing decision.

$500,000 doesn’t buy you much these days in and around the Wollongong CBD but let’s have a look where the money should be spent.

Following on from the boom period experienced from late 2013 and into mid 2015, $500,000 is now purchasing significantly less compared to the beginning of 2013. You can pick up basic and very dated homes in the more desirable suburbs where considerable work is required and in the more southern suburbs, older basic 3-bedroom homes can still be bought for under $500,000. For the past couple of years we predicted suburbs close to the Wollongong CBD, University and local beaches was where the $500,000 would be best spent. These were suburbs such as Fairy Meadow, Towradgi, Gwynneville and East Corrimal. $500,000 appears now to be the minimum price for a basic home in these locations.

This is also evident in coastal suburbs south of Wollongong such as Shellharbour Village, Warilla and Windang where older and basic homes are selling for a minimum of $500,000 and are fast becoming very scarce for under $500,000.

Purchasing a home in the northern suburbs localities such as Austinmer, Woonona and Bulli is close to unobtainable for under $500,000. The figure is around $600,000 to $700,000 for an older home close to local amenities but not necessarily close to local beaches and public transport.

In the Wollongong CBD, new 2-bedroom units can be purchased for around $500,000 to $550,000. These are seen as good investments as far as rental returns go and are attractive to first home buyers and investors due to the rebates and government grants offered. Older 2-bedroom units around the Wollongong CBD can still be purchased for around $350,000 and are also viewed as a good investment and have produced steady capital growth over the past couple of years.

Purchasing land and building in the new releases of Shell Cove, Flinders, Haywards Bay and Brooks Reach Horsley are viewed as a good way to spend $500,000. These areas have seen strong capital growth over the past 12 months. Land can be purchased for $260,000 to $300,000.

Our pick around $500,000 is now switching to southern suburbs such as Barrack Heights and Warilla, where a great amount of stock is older ex- NSW Housing 3-bedroom fibro in nature but close to beaches and good shopping. We will see a pick up in activity here with young first home buyers entering the doer-upper phase of their lives in a great beach side location that is rapidly re-invigorating itself. Some of the best buying if you can get it is in and around Shellharbour Village which still appears to be undervalued in our opinion.

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 – 2015. Australian Credit Licence Number 385325

 

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