Strong demand throughout Wollongong, Shellharbour, Kiama and Shoalhaven LGAs: HTW

Strong demand throughout Wollongong, Shellharbour, Kiama and Shoalhaven LGAs: HTW
Strong demand throughout Wollongong, Shellharbour, Kiama and Shoalhaven LGAs: HTW

Property valuation firm Herron Todd White's latest report says despite the residential property market in the Illawarra performing at strong levels of sustained growth, it is difficult to pin down exactly where the hottest market is.

“We know that there is currently strong demand throughout the Wollongong, Shellharbour, Kiama and Shoalhaven LGAs," HTW noted.

Auction clearance rates remain high and properties selling by private treaty are typically selling within a month.

"Sale periods of less than two weeks are common,” the report stated.

A three bedroom unit at 10/78 Campbell Street, Wollongong (above) has been listed with a price guide of between $820,000 to $860,000.

Similarly a three bedroom unit at 12/2 Edward Street, Wollongong (below) has been listed for between $850,000 to $880,000.

Strong demand throughout Wollongong, Shellharbour, Kiama and Shoalhaven LGAs: HTW

The strong demand is being driven by a number of factors including low interest rates, the media and the flow on effect from Sydney, down to Wollongong, down to the Shoalhaven.

"As buyers miss out on purchasing properties they become more and more desperate and get to the point where they’ll pay whatever it takes to get a listing off the market to secure a property.

This occurs mostly amongst first and second home buyers, especially where they are competing with cashed up investors.

"A property type that appears to be getting a premium is a house in an established area that has nothing to spend on it, for example a relatively new build or a recent full renovation," the report stated.

The property presents really well and the buyer will not have to spend any extra money on it and is aimed at second home buyers.

First home buyers are usually happier to buy at a lower price point and are willing to complete renovations on older dwellings.

“It is hard to imagine that the strong price growth can be sustainable.

"History tells us that the property market is cyclical and strong growth is followed by flatter periods or prices going backwards.

"Unfortunately we do not have an accurate crystal ball so all we can do is speculate.

"Our opinion is that growth may slow towards the end of the year if interest rates rise.

"We don’t imagine that prices would go backwards unless there is a dramatic financial crisis,” the report stated.

Tags: 
Illawarra Htw

Comments

Be the first one to comment on this article
What would you like to say about this project?