After developing reputations as the location of some of the region's most exclusive property, it is no surprise that Austinmer, in the north corner with a median price of $660,000, and Minnamurra, in the south corner with a median house price of $551,000, are predicted to see strong gains in values this year.

What may surprise is the suburbs predicted to challenge these two when it comes to growth.

Among those expected to step up a class are suburbs south of Wollongong such as Primbee (with a median of $360,000) and Warrawong (median of $262,000).

With the market gains of 2009 going some way to recovering the losses of 2008, analysts believe the momentum that started a year ago will be felt at all levels of the market this year.

Australian Property Monitors economist Matthew Bell said an increase in share market returns, a lack of supply and improved employment conditions in the finance, banking and IT sectors would see values rise at the market's top end.

The lack of stock and increasing interest from investors and the Sydney market would influence Illawarra suburbs considered more affordable, he said.

Pam Webster, who has been selling real estate in Wollongong's southern area for 20 years, said suburbs like Primbee and Warrawong were changing as older people downsized into units and retirement homes and younger people moved in.

"At the moment the price is right in Warrawong and Primbee," Ms Webster said.

"Primbee benefits from its privacy and large blocks and there are a lot development opportunities there.

"Primbee has all the benefits of being close to Wollongong, yet at times it feels like it is the country."

Ms Webster said Warrawong was one of the region's best kept secrets when it came to real estate.

"Some of the properties are older homes that are well-built brick homes with high ceilings," Ms Webster said.