A prominent property market analyst believes the rate of growth in the greater Illawarra region is set to slow through 2018.
CoreLogic this week released its September quarter Regional Market Update, with the Illawarra region recording an annual increase in median home values of 13.0 per cent for houses (now at $731,000) and 17.0 per cent ($553,000) for units.
Overall sales volumes across the region fell by 5.4 per cent over the year to August 2017; this equates to 323 fewer homes selling when compared to August 2016.
However, homes are selling quicker when compared to August 2016, with the average time on market for a house in the Illawarra falling by five days and a typical unit selling 11 days faster.
Advertised rental rates across the region have been steadily increasing, with houses up 4.3 per cent and units up by 2.5 per cent over the past 12 months.
Cameron Kusher, head of research Australia at CoreLogic said overall, their latest data points to an increase of value growth in regional markets, particularly those which are located adjacent to capital cities. “As people are priced out of certain capital cities, buyers now appear to be looking to these adjacent regions,” he said.
Other CoreLogic figures have also listed the non-capital city regions (with an estimated residential population of more than 20,000 as at June 2016) with the greatest increase in dwelling values, in the decade to October 2017.
The top two regional markets for value growth over the past decade were Dapto-Port Kembla (89.7 per cent) and Wollongong (77.8 per cent).
According to the figures, Dapto-Port Kembla has a current median dwelling valueof $549,664, while Wollongong’s is $771,273.
“I think that Wollongong region has become more of a city in its own right, that people can live in the Wollongong region, have a job there and not necessarily have to commute back to Sydney for work,” Mr Kusher said.
“I think that’s really driven the demand in that market… A lot of people purchasing, probably not so much in Dapto and Port Kembla, but certainly in Wollongong and even in Kiama, people (are) buying for lifestyle reasons.”
Kiama-Shellharbour has also experienced a 61.5 per cent growth over the ten-year period, resulting in a median dwelling value of $640,479.
“The monthly data is showing that the region is starting to see a bit of a slow down, much like what’s happening in Sydney,” Mr Kusher said. “We’re not really seeing falls of the magnitude that we’re seeing in Sydney yet, but certainly the rate of growth has stepped back.
“I think we’ll probably continue to see that next year. The rate of growth in the greater Illawarra region is going to slow through 2018.”