The older-style 32 Beacon Avenue home, positioned a short distance from Bulli Beach and Sandon Point, was snapped up by a Sydney buyer who plans to eventually knock down and rebuild on the site.

Selling agent Troy McNeice, of McGrath - Thirroul, said the weekend sale was $171,000 above the reserve price.

Mr McNeice said the Illawarra’s coastal lifestyle, coupled with its relative affordability compared to Sydney, was attracting large numbers of out-of-town buyers.

‘‘More than 80 per cent of people who inspected the property originated from outside the area and predominately Sydney,’’ Mr McNeice said.

‘‘The area is red hot at the moment with strong demand from Sydney buyers relocating for a better lifestyle and value for money.

‘‘They are able to cash in where they are living now and have a strong budget to purchase property in the local area.’’

Mr McNeice said East Bulli and East Woonona were red hot at the moment and had seen strong capital growth as they were next in line for buyers who could not afford to enter the Thirroul market.

‘‘They offer better value for money, beautiful beaches, transport links, great schooling options and are being gentrified more and more,’’ he said.

Another suburb doing well in the current strong market is Gwynneville, with a three-bedroom weatherboard cottage - opposite Wiseman Park - selling for $782,000 at auction on the weekend.

The 6 Vickery Street property, set on a 932 square metres block, sold in excess of its $750,000 reserve price.

Selling agent Mark Jackson, of Jackson Residential - Gwynneville, said the leafy and quiet suburb had really taken off price-wise in the past few years.

‘‘I’m noticing a big shift in the demographics of the area,’’ he said.

‘‘A lot of the older-style cottages that have been in the one family for 50 years or more are being sold and new people are moving in who are attracted to the community atmosphere around the young families who are here.

‘‘Gwynneville has the university on the northern side, the medical precinct on the southern side and the Gipps Road cafe strip is really taking off. The suburb is also part of the free bus network.’’

In other property news, Belle Property Wollongong recently sold a four-bedroom home, on a 950 square metres block, on the eastern side of Fairy Meadow for $725,000 at auction.

The older-style 47 Rann Street property, in original condition, was marketed as an investment opportunity or the site of a luxurious new home on a completely level block.