Prices for both new and existing homes in the Illawarra are flat or down slightly, a new quarterly report says.
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The Urban Development Institute of Australia NSW's Residential Developer Market Intelligence (RDMI) report was released recently.
The quarterly RDMI looks at residential market performance. The report's analysis of the Illawarra region encapsulates the Wollongong, Shellharbour, Kiama and Shoalhaven LGAs.
According to the report, the Illawarra suburbs that experienced the greatest movement in median house price over the three months to January 2019 were Bawley Point (15.4 per cent increase), Minnamurra (15 per cent decrease) and Dolphin Point (14.2 per cent decrease).
The suburbs with greatest three-month movement in median unit price included Coniston (15.1 per cent increase), West Wollongong (11.7 per cent increase) and Gerringong (7.8 per cent decrease).
Dwelling approvals in the Illawarra have started to slow, increasing by just three per cent in the three months to February 2019.
New house and unit prices have remained flat over the past three months, with the median new house price falling just 0.5 per cent.
The established market fared slightly less well, with the median house price dropping 1.3 per cent and the median unit price falling 0.5 per cent.
Sales volumes are starting to decline, with house sales down six per cent and unit sales down 4.5 per cent.
UDIA NSW's Greater Western Sydney & Southern Region manager Keiran Thomas said challenging market conditions continue to face the development sector as the property downturn continues to unfold across the state.
"UDIA NSW expects the subdued demand profile for new residential products to persist for at least the next six months and most likely into the 2020 calendar year.
"Underpinned by a 'credit crunch' for both retail consumers and developers in the wake of the Banking Royal Commission, we expect the soft market conditions to continue to put downward pressure on pricing and sales volumes over the coming period.
"In the Illawarra, prices for both new and existing homes are flat or down slightly, similar to Greater Sydney.
"However, approvals continue to grow strongly, suggesting fewer projects may start due to the unfavourable market conditions."
Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
