The month in review: Wollongong
By Herron Todd White
As previously reported, the residential property market in the Illawarra has gone from strength to strength since 2013 with no particular price point or location being left out. All purchaser types have been affected, from first home buyers, investors focused on returns and prestige buyers. Demand from buyers has shifted south from Sydney into the Illawarra and even the Shoalhaven has come out of a long market slump.
PriceFinder reports that the most active price ranges for house sales in the Illawarra during the 2016 financial year vary for the different Local Government Authorities. The highest volume of house sales in the Wollongong LGA was 420 sales in the $600,000 to $700,000 range. The most house sales in the Shellharbour LGA was between $400,000 and $500,000 with 292 sales. Kiama’s LGA has the highest range with 68 sales in the $700,000 to $800,000 range while the Shoalhaven LGA has the lowest with 756 house sales between $300,000 and $400,000.
Affordability and availability is the key to the most favoured price points. When a property is deemed affordable it has the broadest market including first home buyers and mum and dad investors. The more common types of property will also become available to the market more often, leading to higher volumes.
The least amount of activity in the Illawarra is, not surprisingly, the prestige market. While this market has been relatively strong over the past three years, there is still a limited amount of activity, mainly due to a limited amount of supply of this property type to the market. Prestige properties in the Wollongong,
Shellharbour and Kiama LGAs tend to be in the $2 million plus price bracket while this drops to $1.5 million in the Shoalhaven LGA and is limited to beach front or large acreage style properties.