Ray White Callala director Craig Hadfield sold the three bedroom home, with a detached self-contained area, at 97 Quay Road for $2.1 million.

“The previous best sale for the area was $1.925 million in 2006,” Mr Hadfield said.

“This is the first sale over $2 million. It sets a new benchmark. Property continues to rise at the top end of the market going forward.

“This sale is good for the entire area. Having prices that high for beachfront drags off the water prices up as well. That will spread to other suburbs like Currarong and Culburra.”

The double-storey home with direct beach frontage, has three bedrooms and three bathrooms, with another bedroom and bathroom in a detached self-contained area. Mr Hadfield said the home has been purchased by a young Bowral couple.

Mr Hadfield said the Shoalhaven market was “running hot” with Sydney buyers.

“Waterfront properties down our way at Currarong, Callala and Culburra have been a bit slower to follow the Sydney trend and catch up,” he said.

“Our markets on the water in Gerringong have been hot for 12 months, now that trend is shuffling further south.”