Three oceanfront lots at The Waterfront reportedly set a record price for land at Shell Cove earlier this month.
Meanwhile, a new report analysing median house prices over the past five years in select waterfront locations in NSW found those suburbs recorded average price growth above the Sydney average.
This would appear to highlight the appeal of waterfront communities with a marina and added amenities.
Shell Cove is a joint development between Shellharbour City Council and Frasers Property Australia.
The report comes after three oceanfront land lots at The Waterfront set a record for land at Shell Cove on April 13.
A 507sqm lot sold for $1.3 million, while a 594sqm lot fetched $1.4 million.
Two registered bidders fought it out for the final 559sqm block, which sold for $1.471 million.
The record prices appear to highlight the value buyers place on land at The Waterfront, which the new report predicts will experience strong capital growth.
Consulting firm Urbis compared the relative pricing of median houses in Shell Cove with four locations in NSW that it considered most similar: Nelson Bay in Port Stephens; Greenhills Beach and Caringbah South, both in Sydney's south; and Newport on Sydney's northern beaches.
All the suburbs including Shell Cove recorded average price growth above the Sydney average in the five years to September 2018, according to the Urbis report.
Alex Stuart, associate director at Urbis said Caringbah South in Sutherland Shire, which is surrounded by waterways and is home to a number of marinas including Burraneer Bay Marina, enjoyed 12 per cent average annual growth in the five years to September 2018.
"The median price for a house is $1.735 million in Caringbah South, which shows the relative affordability of Shell Cove," he said.
Mr Stuart said while all the comparison locations share some characteristics with Shell Cove, the suburb provides a unique combination of amenities.
The research also indicates that there is currently no large marina between Sydney and Eden on the South Coast of NSW, highlighting the unique positioning of The Waterfront, Shell Cove.
Shell Cove's median house price was $930,000 at an annual growth of 11.9 per cent, compared with Sydney's 9.2 per cent for the five-year period analysed by Urbis.
The Shellharbour Marina and boat harbour now under construction will be next to The Waterfront Town Centre, stage one of which is open and includes a full line Woolworths supermarket, liquor outlet and nine specialty shops.
The town centre will also include restaurants on the marina's edge, a waterfront tavern, hotel, children's beach, water play areas, library and community centre.
A limited number of land lots are now for sale and range in price from $615,000 to $890,000.
The lots, located 600m from the beach and 200m from the boat harbour and public boat ramp, are also within walking distance of the new town centre.