Land in the established Illawarra suburbs is rare, and when lots have come onto the market recently they have been snapped up quickly.
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Meanwhile, supply in the region's new release areas is limited and demand is high.
That's according to a new report from property valuation and advisory company Herron Todd White, which has analysed the country's vacant land markets, including the Illawarra and Shoalhaven.
In the Illawarra, region director Chris McKenna said for land, demand has been strong in recent times along with the wider property market.
Land in the established suburbs is rare and when lots have come onto the market in recent months they have sold quickly, according to Mr McKenna.
A block on Abercrombie Street in West Wollongong sold in March this year for $810,000, two years after it previously sold for $570,000, a gain of 42 per cent.
Meanwhile, he said the growth areas in West Dapto (Kembla Grange, Wongawilli and Horsley) move through different phases, and further supply is either in the planning stages or currently under construction.
"Where rebates were once required to stimulate some action, these are a thing of the past in the current hotter market," Mr McKenna said.
"Standard block sizes are approximately 450 square metres and prices sit around the high $400,000s for these lots with a 550 square metre lot in Kembla Grange Estate recently selling for $550,000. Larger lots can be available in these subdivisions although most of these are affected in some way by either powerlines or environmental impacts."
Further south, construction continues on future stages of the Calderwood Valley and Tullimbar subdivisions.
Mr McKenna said the developer of Calderwood is not currently selling any lots, and there are only a small number of re-sale lots available, with prices starting in the high $300,000s for the smaller lots.
"Across the road, 1881 Tullimbar has recently settled its most recent stage, with stages one to four all being sold out," he said. "Re-sales are available on some lots with smaller split level lots available in the low $300,000s."
Shell Cove remains the other major land release suburb in the region.
"The developer advises that their next release will take place mid-way through 2022," Mr McKenna said.
"Re-sale lots do become available in different pockets of Shell Cove with a 390 square metre lot in the premium Beachside Collection listed for approximately $1.6 million."
Mr McKenna said overall supply in the new release areas is limited and demand is high.
He said in the next year or two, additional stages and subdivisions will hit the market.
"These are expected to sell well if the market remains as hot as it currently is," he said.
"Although if conditions weaken, recent history has shown that prices in the new estates can be impacted when supply is at its peak."
Mr McKenna said there were small blocks of bushland in Helensburgh that continued to transact.
Lady Carrington Estate was subdivided in the 1980s with speculation that the lots could be rezoned to permit residential dwellings.
"As of today, this hasn't yet happened and last year further submissions to rezone the land were knocked back," Mr McKenna said.
"The lots continue to trade from time to time; recent sales range between $60,000 and $100,000.
"This is about as speculative as it comes, but if rezoning did occur, the lots would appreciate in value overnight."
Meanwhile, HTW's director valuer Joshua Devitt looked at how vacant land is currently performing in the Shoalhaven region.
Highlighting the strong demand and limited supply for vacant land in the region is the outcome of a new subdivision in Tapitallee known as Tangala Estate, situated near North Nowra and fronting Illaroo Road.
This featured all 24 allotments of approximately an acre in size sell on the same day for a reported combined total of $19 million, with an average block price of $790,000.
"It was also reported that of the 24 purchasers, only two were from outside the region with over 100 registered bidders taking part in the auction," Mr Devitt said.
Mr Devitt said with a limited supply of vacant land currently on the market in the region they were also seeing positive and strong results in other new subdivisions.
Basin Rise Estate, located within walking distance to the St Georges Basin local shopping village and local leisure facilities, is reportedly selling strongly.
He said this was also the case with a new subdivision further south, Sussex Inlet Golf Village.
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?
