Wollongong June 2017

The month in review: Wollongong

By Herron Todd White
June 2017

There is currently a lot of residential construction happening in the Illawarra. This comprises a mixture of new dwellings in new subdivisions, new infill and unit construction, knock down rebuilds, substantial renovations and extensions and minor renovations. A number of suburbs are in the process of transforming through family homes being sold for the first time in generations and younger owners then updating or re-building. This is happening in the older established suburbs north of Wollongong and those in and around the Wollongong and Shellharbour CBDs. This type of property is popular with first or second home buyers along with investors who are skilled in a trade themselves.

It appears that premiums are being paid for properties (dwellings or units) where the purchaser can move in and not have to do a thing. This can either be a new build or one that has had a recent modern transformation. The residential market is currently strong so it is hard to tell how much is a premium or how much is market movement. A recent example of a quick flip is a house in Mount Pleasant which sold for $710,000 at the end of August 2016 as an older style, circa 1960 single level 3-bedroom, 1-bathroom dwelling. It has had a complete renovation but no extension and sold again in April 2017 for $1.075 million. Allowing for a renovation budget of around $150,000 to $170,000 and market increase of 10% to 15% during this time (approximately seven months), the profit is circa $100,000.

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