The 51-year-old woman was stabbed to death in her Campbell Street home sometime before midnight.

Wollongong police made the gruesome discovery after they stopped a vehicle on Nicholson Street, Woonona, for a random breath test.

As police approached, the driver, a 56-year-old man, drove off before hitting a guard rail nearby.

He was arrested at the scene and charged on Wednesday.

After speaking with the man, other officers went to the Campbell Street home where they found the woman with multiple stab wounds.

She was unable to be revived.

Crime scene investigators were at the home collecting evidence and speaking with neighbours early Wednesday morning.

A neighbour, who did not wish to be named, said she did not hear anything on Tuesday night nor did her dog bark to alert her.

"I was lying in bed reading until 11pm but I didn't hear anything," she said.

"It is confronting.

"We live in a usually quiet townhouse complex.

"It is a bit of drama for New Years Day.

"Detectives told me police had to kick the unit door."

The resident said the woman had bought her unit within the past 12 months, was friendly and used to say hello in passing.

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Wollongong District Police Inspector Angela Burnell said the alleged homicide was a "tragic start to the New Year".

"Our thoughts go out to the family," she said.

"Investigations of these nature are never pleasant.

"It is very early on in the investigation.

"I can confirm the two people were known to each other."

A crime scene was also established at the crash site.

The man was taken to Wollongong Hospital under police guard after suffering minor injuries to his head in the crash.

He was treated and taken to Wollongong Police Station; however, he had to return to hospital under police guard for further treatment.

He was later returned to the station and charged with murder. He was refused bail and will appear in Wollongong local court on Thursday.