Strong competition to keep pushing Illawarra prices higher: HTW
Strong buyer competition looks set to continue to drive prices up in the Illawarra through the early part of the year, according to HTW's February 2017 update.
The valuation firm says 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, it predicts that the Illawarra residential property market will continue to perform strongly.
"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," HTW says.
Demand for stock and sale price increases flowed down the coast to the Shoalhaven which also saw substantial growth in 2016.
“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,” the report states.
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,” HTW cautioned.
“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,” says the report.
For the median price of $792,000 a house such as the one at 127 Kembla Street, Wollongong (above) can be purchased for $800,000.
For $525,000 a unit such as the one at 25/26-28 Market Street, Wollongong (below) can be purchased for between $520,000 to $570,000.
