The IRIS Illawarra Real Estate Report, released this week also showed medium density dwellings in the Shellharbour Local Government Area (LGA) had risen 13 per cent to $395,000 and land prices climbed 29.6 per cent to $350,000 in the year to June 2015.

The news is no real surprise for real estate agents selling property in the area, who say demand for homes in the area was being driven by the value for money and lifestyle opportunities Shellharbour and surrounding suburbs offered.

Ray White Shellharbour Oak Flats Group principal Amanda Bonnici said the Shellharbour marina, currently under construction, along with new shopping centres, proximity to the water and affordability was attracting both retirees and young families.

“The area offers a relaxed lifestyle,” Ms Bonnici said.

“Shellharbour has got something for everyone.”

Chris Lovatt from One Agency Southern Division said while value for money and the unspoilt beauty of the area were key factors in the area’s growth, infrastructure was also a selling point.

“Infrastructure in the area is very good and the expectation from Sydney buyers these days, is that this be already in place.”

“It’s definately a lifestyle choice for people to move here,” Mr Lovatt said.

Meanwhile, in the Wollongong LGA the median house price has risen by 11.8 per cent to $533,500 in the past year.

Thirroul and Austinmer and suburbs from Russell Vale to Fairy Meadow experienced the largest growth in median house prices, up 14.9 per cent. This was closely followed by Dapto, Kanahooka and Koonawarra which had an increase in median house prices of 14.7 per cent.

The report showed that Dapto, Kanahooka and Koonawarra experienced the largest growth in the median property price for medium density housing, a rise of 23.5 per cent.

This was followed, by Lake Illawarra and Oak Flats at 19.7 per cent and Woonona and Bulli at 16.8 per cent.

MEDIAN HOUSE PRICES FOR YEAR TO JUNE 2015: