Newcastle's Candice Meaney was up early to enjoy a paddle around the Lake Illawarra foreshore, but dozens of people enjoying the surf at North Beach were left huddling in their beach towels when strong southerly winds of up to 65km/h hit about midday.

The mercury dropped from 24 degrees on the coast to just 20 degrees by early afternoon while at Albion Park, temperatures reached about 26 degrees in the morning before dropping down to the early 20s by mid-afternoon.

Today's temperatures are expected to remain on the cool side, with a chance of rain tomorrow, but those heading out on New Year's Eve can expect a warm and sunny day.

Forecasters predict a warm start to 2013, with temperatures reaching the mid to high 20s later next week.