In a housing market barometer, Wollongong and Sydney were listed at the top as robust performers with a forecast growth of 7 per cent in the median house price for this year.

Brisbane came in at 5 per cent on the barometer; Melbourne, Adelaide, Hobart and Canberra have an expected 4 per cent growth; while Perth and Darwin will moderately grow at 3 per cent.

Domain Group senior economist Dr Andrew Wilson, who compiled the barometer, said the 7 per cent growth was conservative and Wollongong was more likely to experience a 10 per cent increase over the coming year.

Dr Wilson presented his report Wollongong - still rising through 2015 to a group of the region's real estate agents on Tuesday morning.

The report revealed that while Sydney would continue to be the best national performer in 2015 for property, Wollongong would reflect the heat of the Sydney market.

For example, the Thirroul median house is now $810,000, an increase of 7.2 per cent in the six months to December 2014.

That result shows how close the Illawarra's northern suburbs are in price range to Sydney, the nation's most expensive market.

The median Sydney house price was $872,811 in the December quarter.

In the Wollongong local government area, the median house price was $520,000, an increase of 8.3 per cent in the December quarter.

According to the report's data, the top selling suburb was Dapto which had 114 house sales, with a decrease in the median house price of 0.2 per cent to $380,000 in the six months to December 2014.

Yet the suburb experienced a 9 per cent increase in its median house price over a 12-month period.

Other strong performers included Woonona, which had 94 house sales and an increase in the median house price of 9.2 per cent to $617,000, over the six-month period; and Figtree with 76 house sales and a strong median house price increase of 11.5 per cent to $547,000.

Dr Wilson said one of Wollongong's greatest attractions was its affordability advantage over the high-priced Sydney market.

"The year finished off strongly for Wollongong and it's more going forward for 2015," he said.

"Wollongong is ticking a lot of boxes at the moment and its economy is improving."

Dr Wilson said the growth in the housing market was underpinned by Wollongong's diverse economic drivers, strong job growth and falling unemployment.

He added the wealth effect from Sydney boosted the local market, as well as the lower dollar and higher sharemarket activating prestige buyers and the holiday home market.

"There is a rising population attracted by sea-change, green-change lifestyle, the proximity to Sydney and affordability," he said.

The report showed that 484 houses and 352 units were approved for building in the Wollongong area in 2014.

In 2013, the total number of dwelling approvals were 553 houses and 135 units.

Dr Wilson noted in his report that new unit construction and inner-city development was surging in Wollongong, with a question mark over whether supply would match demand.

* The Domain Group is owned by the Illawarra Mercury's publisher Fairfax Media.

lturk@fairfaxmedia.com.au