A sign advertises Munna Munnora Estate at Kiama.
When it comes to residential land values, the Kiama Municipality boasts the highest of any local government area in NSW outside the Sydney metropolitan area.
According to NSW Valuer-General Philip Western, Kiama's median residential land value of $292,000 now tops that of Byron Bay ($285,000) and Wollongong ($236,000).
With that in mind, a new subdivision on South Kiama Drive, overlooking Easts beach, was always going to spark some interest.
Michelle Lay, of Ray White Kiama, said the main reason for Kiama's high prices was the strong demand and lack of supply.
"When it comes to new land, the central Kiama area has been landlocked for some time now," Ms Lay said.
Ray White Kiama began selling lots off the plan for the new Munna Munnora Estate on South Kiama Drive at the end of last year.
The estate comprises 34 blocks, ranging in size from 465 to 631 square metres, with prices starting at $259,000.
Ms Lay said some of the blocks were steep and would incur extra building costs so had been priced accordingly.
Ten lots had already been sold, with the estate within a short walk from Kiama High School.
"There has been a lot of interest from locals, both young people and investors," Ms Lay said.
The Munna Munnora subdivision is part of a 4.1 hectare parcel previously owned by Anglican Retirement Villages, which had a proposal to build the Kiama Sands seniors' living development on the site.
The site was sold for $2.6 million in 2010.
Part of it remains zoned for medium-density housing.