House prices in the Illawarra rocketing

Wollongong's median house price has reportedly reached a record high of $500,000, jumping 7.5 per cent in the June quarter.

The figures, published in Australian Property Monitors' (APM) quarterly housing report, show the Wollongong property market is experiencing strong growth.

Over the 12 months to June 30, Wollongong's median house price recorded a hefty rise of 13.9 per cent - from $439,000 to its current $500,000 - the APM data shows.

APM senior economist Dr Andrew Wilson said Wollongong was one of NSW's top performing regional markets.

"That reflects its proximity to Sydney and a lot of people are starting to think about the more affordable option that Wollongong is," Dr Wilson said.

"Certainly with a median house price of $500,000, that is well below the Sydney median of $811,837 and there are desirable lifestyle factors with living in Wollongong.

"The economy in Wollongong is also doing quite well, as is Sydney, which is part of the equation, and there has been some jobs growth, combined with low interest rates.


"There has been a general rise in confidence in the market place."

Dr Wilson said Wollongong's 7.5 per cent rise in median house prices over the three months to June was higher than Sydney's 3.1 per cent over the same period.

The APM data also showed that Wollongong's median unit price had dropped 1.4 per cent to $360,000 over the quarter.

Shellharbour's median house price fell 1.6 per cent to $418,000 over the quarter yet in the 12 months ending June 30 climbed 7.2 per cent.

In Kiama, the median house price dropped 5.9 per cent to $530,000 over the quarter, yet rose 11.9 per cent over the year to June.

Dr Wilson said unit prices in general tended to be volatile and "jumped around a bit".

"I think one of the factors is that there has been a lot of new development in Wollongong with units, so there may be just a catching up with supply and demand," he said. "But certainly the energy and the demand is with houses at the moment."

The housing market was still very strong in the Shellharbour and Kiama areas, and the slight drop in median house prices over the quarter was due to volatility in the numbers, he said.

Australian Property Monitors' June quarter house price report also showed that the national median house price rose by a solid 1.9 per cent over the June quarter to $627,940.

The national median house price increased by 10.9 per cent over the year ending June 30.


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