The sale price was $150,000 greater than the seller's reserve and is the highest recorded in the suburb in at least 25 years, according to agent Tony Dribbus.

It came after three-way bidding between two Sydneysiders and an Illawarra resident at the onsite auction at 553A Lawrence Hargrave Dr on Saturday.

The interest is the result of the rare private access to Wombarra Beach leading through the property's backyard.

"In Wollongong and the northern (suburbs) there's less than a handful of streets that have true beach access and that's what really pushed the price up," said Mr Dribbus, of Ray White Thirroul.

The property includes five bedrooms, three bathrooms and a double garage. It was built 10 years ago.

The sale is believed to be the second-highest recorded in the Illawarra's northern suburbs in at least 25 years and is testament to the growing exclusivity of Wombarra.

Prices in the suburb now start at about $580,000.

" It's got a small population ... and you've still got the ability to go to Sydney and earn a Sydney income," Mr Dribbus said.

Demand for waterfront properties was sluggish from 2004-2008 but had picked up in the past two years, he said. The new owner plans to live in the home.