Illawarra residential market continues to grow strong: HTW

The Illawarra residential market prices continue to grow strong, according to Herron Todd White’s recent report.

The property valuation firm says that various factors such as low interest rates, employment and decreasing affordability in Sydney are creating strong demand for the area.

“There has been strong growth in the Illawarra residential market for a number of years in all locations and property types.

The market is particularly driven by what is happening in Sydney.

There is a flow on effect from Sydney to Wollongong to the Shoalhaven.

Low interest rates, stable employment, improving infrastructure and decreasing affordability in Sydney all combine to create strong demand for residential property at all price levels.

There are a number of factors that could cause the market to change.

These include interest rate hikes, an over supply of new properties, an economic downturn in the region or a crash in the Sydney market.

Interest rates are currently at record lows and it appears that both owner occupiers and investors are willing to borrow more and more to fund transactions.

Any interest rate hike may cause investors in particular to hold off buying property until it becomes apparent that interest rates are not going to keep increasing.

Without as many investors in the market, demand will be lower and competition between buyers will be reduced,” the report stated.

Wollongong in particular is in the middle of a construction boom, especially in unit developments according to Herron Todd White.

“Wollongong is in the midst of a construction boom.

In particular new unit developments are at an all time high and the supply of new units are at unprecedented levels.

In addition there are many new land developments of varying sizes with the majority in West Dapto, Calderwood, Shell Cove and South Nowra.

As long as the supply is being met by strong demand the market will continue to be strong.

However all this new supply may exaggerate any downturn in the market if developers cannot offload their new stock,” the report advised.

Herron Todd White says that Illawarra’s economic situation is tied with its property market and therefore influences it.

“The Illawarra property market is strongly linked to the economic fortunes of the region.

The region continues to diversify from its mining and steel roots and has enjoyed good growth in medical and aged care and tourism sectors.

That said, market confidence is still derived from the steel and mining sectors.

Major downturns in these sectors could result in a downturn in the property markets.

With the region being more and more accessible to Sydney through improved infrastructure, the link between the Sydney and Illawarra property markets is closer than ever.

It is likely that the events that would cause a slow down in the Sydney market would also impact the Illawarra and if Sydney buyers were removed from the Illawarra market demand for property would be reduced,” the report stated.

A three bedroom house at 9 Mark Street, Figtree (above) has been listed for between $699,000 to $768,900.

Similarly a two bedroom house at 45 Hillcrest Avenue, Woonona (below) has been listed for $600,000.

A two bedroom house at 1/4 Pleasant Avenue, North Wollongong (below) was recently sold for $570,000.

Similarly a four bedroom house at 21 Norman Clark Crescent, Horsley (below) was recently sold for $955,000.