Wollongong’s property market continues to boom, with new data showing the median house price is now $530,000, a jump of 10.2per cent in the December quarter.
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As the latest figures come on the back of a 7.5per cent growth in the June 2014 quarter, Domain Group senior economist Andrew Wilson said Wollongong’s performance was extraordinary.
‘‘This is the first time the Wollongong median is now over $500,000 and that’s certainly a record,’’ he said.
Wollongong’s median house price shot up by 12.9per cent over the year, sitting just under Sydney’s 14per cent, according to the Domain Group’s House Price Report.
‘‘This is a big result for Wollongong,’’ Dr Wilson said.
‘‘I think Wollongong is certainly back in town and has caught the Sydney fever.’’
Apartment prices in Wollongong jumped 10.7per cent over the year and 8.1per cent over the quarter to $398,500.
The Kiama region also had strong growth last year, with house prices shooting up by 12per cent.
Dr Wilson said part of Wollongong’s growth could be attributed to Sydney market momentum.
‘‘There’s an affordability issue – buyers are comparing Wollongong to Sydney which has a median house price of just under $875,000,’’ he said.
‘‘I also think there is a lot of positive energy in the Wollongong market at the moment and I do think it reflects higher-priced properties finding buyers and hence a very strong rise over the year.’’
Belle Property Wollongong principal Darren Kay said the December 2014 quarter was the agency’s best on record.
‘‘Our auction clearance rates have been higher than ever and properties have been selling well above their reserve price,’’ he said.
Mr Kay said four out of five properties to go under the hammer at the agency’s first auction night for 2015 on January 23 were sold, with an offer on the fifth made in the days afterwards.
An older-style two-bedroom house at 12 Thalassa Avenue, East Corrimal, which is 300m from the beach, sold for $700,000.
Belle Property also sold a 1930s original four-bedroom home at 4 Byarong Avenue, Mangerton, for $800,000 under the hammer – the highest sale ever in the street.
‘‘Those sales just emphasise that anything close to infrastructure, the CBD or the beach is going to enjoy a lot of capital gain,’’ Mr Kay said.
Dr Wilson is forecasting price growth for Wollongong of between seven and 10per cent for 2015. ‘‘Probably closer to seven,’’ he said.
Yet the boom mode will begin to marginally slow down.
‘‘There is certainly plenty of confidence and momentum in the Wollongong market from buyers and sellers,’’ Dr Wilson said.
‘‘I don’t expect the figures to be sustained at that level because it’s extraordinary to have a 10per cent rise over a quarter.
‘‘And while Wollongong is a large regional market, which has strong connections to Sydney, I would expect to see some moderation in that growth rate.’’
Mr Kay predicted the Wollongong market would remain strong for at least the first six months of 2015.
‘‘The time to sell the top end property is now when the market is at such a high point with high consumer confidence, especially from discretionary buyers and people using equity to purchase weekenders and top end homes,’’ he said.
‘‘This is the market that people sell in, and that people are prepared to buy in.’’