After experiencing a thriving property market throughout 2021, the Illawarra is expected to remain in high demand over the next 12 months, a leading buyers' agent says.
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However, while more suburb price records could be set in 2022, they will be occurring far less frequently.
Rich Harvey, CEO of buyers' agents Propertybuyer said COVID-19 brought many lasting changes including the "flight to lifestyle", or "people fleeing the city" to regional areas and coastal suburbs.
"We're seeing clients desire larger home offices and upgraded homes," he said.
"Some are moving to Newcastle, Mornington Peninsula, Central Coast, or other lifestyle regions."
This includes the Illawarra, which Mr Harvey said would continue to be a key location for the "work from home phenomenon" throughout next year.
"The Illawarra market this year has been very much the 'flight to lifestyle'," he said.
"Buyers are getting out of Sydney, they're working from home, and so they don't have to be commuting to the city every day.
"People have gone, 'I can sell my $2.5 million property in Sydney and I can buy something beautiful in the Illawarra for $1.2 million', or whatever they want to spend.
"We've had a national property boom this year, for reasons such as the lockdowns leading to a shortage of supply, and yet demand has increased."
Therefore, for next year, he expected those COVID-related trends would continue.
"The Illawarra is a very attractive area," Mr Harvey said.
"There's going to continue to be strong demand from owner-occupiers, investors, people seeking Airbnbs and getaways. So I think the Illawarra has a very bright future for 2022."
However, he said while he believed the work from home phenomenon had long-term legs in the Illawarra, there were some limitations.
"I think at some point it will pull back - that trend won't continue at the same pace, because a lot of employers are realising they need face-to-face collaboration.
"It's a very different dynamic, having a Zoom call as opposed to seeing someone face-to-face.
"There's limits to how much the work from home approach will continue to drive that 'flight to lifestyle'."
Many new suburb price records have been set throughout the Illawarra and South Coast in 2021.
Mr Harvey said he expected there would be less new price benchmarks set throughout next year.
"You may see a couple of record prices, but you won't see anything like what you've seen in 2021," he said.
"The reason why is demand is gradually being satisfied - if there's more stock, people have more choice. As you get more stock on the market, then you will see the high level of demand taper off.
"During lockdown there was little stock on the market, but now you should see less people bidding at auctions."
Meanwhile, Lachlan Vidler, director of Sydney-based buyer's agency Atlas Property Group said regional markets, particularly those within a few hours of capital cities, were also looking to continue their strong performance in 2022.
"With affordability and remote work big considerations in 2022, these markets have set themselves up for further success," he said.
Mr Vidler said regional markets had been strong performers over 2021.
He said this was expected to continue, particularly for those markets within a few hours of a capital city.
"These spots allow people to purchase more affordable properties, while working remotely, but retaining the ability to travel to the city as required," he said.
"This is also possible from regional cities that have airports and allow similar connective ability as being within a few hours' driving distance."