The half-yearly report card for the Illawarra residential property market is in, with plenty of demand for housing across the region causing prices to climb and some "astonishing" sales prices being recorded.
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"Once there was a $4 million ceiling for residential prices north of Wollongong," Chris McKenna, region director for property valuation and advisory company Herron Todd White said.
"That ceiling is now well and truly smashed through, with four beachside residential sales over $4 million this year, highlighted by a record price of $6.31 million paid in Wombarra."
However, Mr McKenna said it remained to be seen how 2021 would finish for the region's property market.
"There are murmurs circling that demand may be dampening," he said.
"Supply to the market has certainly picked up, which may meet demand, as owners look to capitalise on the strong selling conditions."
In the meantime, Mr McKenna provided a half-year assessment of the Illawarra market.
He said the residential market had continued to perform strongly in the six months so far.
"The northern beaches suburbs include plenty of the premium product on offer in the Illawarra," he said.
"Agents have reported that there has been strong interest from Sydney buyers in the upper market levels."
According to Mr McKenna, the lower level of this market has also risen with sales of houses north of Wollongong for under $800,000 being rare.
"South of Wollongong has also seen strong prices being paid for houses in areas such as Figtree, Farmborough Heights, Kanahooka and Albion Park," he said.
"New housing in Horsley, Kembla Grange, Wongawilli and Calderwood has had plenty of demand and is highlighted by six sales of $1 million plus in Horsley this year alone.
"Entry level new detached housing for under $700,000 in these estates is now very limited.
"Shell Cove has also been a standout with six sales over $1.5 million and two properties in Blackbutt have sold for at least $2 million this year."
Mr McKenna said plenty of money had been flowing into Kiama's prestige market with three sales over $4 million.
"The rural residential market has set all kinds of records including a sale in Jamberoo of a 24-hectare property with extensive improvements selling to a local buyer for $7.65 million," he said.
He also reported that the cheapest house price so far appeared to be $425,000 for an older dwelling in Monteith Street, Cringila.
"There are limited other house sales under $500,000," he said.
As reported by the Mercury in June, the South Coast's property market remains in high demand, with a prestigious home selling for $7,550,000.
The property is located at 71 Werri Street, Werri Beach.
Meanwhile, HTW's director valuer Joshua Devitt said the residential market in the Shoalhaven had "defied all expectations and continued to motor along" in the first half of the year.
"Record low interest rates, demand outweighing supply and the effects of the COVID-19 pandemic allowing more and more employees and employers to work from home has enticed people from the larger cities to move south to the Shoalhaven region," Mr Devitt said.
"The market started the year off strongly and has only become stronger towards the halfway point of the year."
Notable sales include a waterfront property sold in Beecroft Parade, Currarong for $4.15 million in February, and another waterfront property in Penguins Head Road, Culburra for $3.855 million in May.
At the entry point of the market, in suburbs such as Sanctuary Point, there had only been a handful of sales of house and land properties selling for less than $450,000 in the past three months.
Mr Devitt said it was difficult to predict what would occur in the last six months of the year.
"However, one aspect is for sure - the first half of 2021 was incredible for property prices in the Shoalhaven region," he said.
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Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
