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NSW Northern Illawarra Market

Discussion in 'Where to Buy' started by alexm, 29th Jun, 2015.

  1. alexm

    alexm Well-Known Member

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    Just got back form an auction in the northern illawarra for a series of lots close to the ocean. Far out, the prices are out of control! My feasibility numbers were totally blown away with some of the prices people were paying for blocks of land. Even for a PPOR, I couldn't justify the numbers to grab any.

    Good luck to them however I think this is the top of the market.

    Anyone else have the same thoughts in this market regarding the illawarra?
     
  2. sash

    sash Well-Known Member

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    All for the Gong is catching the Sydney disease...both North and South...
     
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  3. Chilliblue

    Chilliblue Well-Known Member

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    Agree with Sash. Even as far south as Nowra the real estate agents are saying anything under $300K are being snapped up by Sydney and interstate investors.

    We picked up an 2 bedroom unit in 2528 a few years ago. The opposite unit which is identical in all perspectives only its in its original condition was just sold after two days for $335.5K with over 4 buyers bidding.

    Working on that sale, our IP has increased by over 85% in under 4 years which makes the growth comparable to our Sydney PPOR.
     
  4. Tekoz

    Tekoz Well-Known Member

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    So how come property in Wollongong area can also get the riple effects of Sydney ?
    That's way too far out from Sydney CBD, there has to be some economic driver I suppose.
     
  5. Chilliblue

    Chilliblue Well-Known Member

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    What happens is people who were looking at middle Sydney turn to outer Sydney because its more affordable. That in turn puts pressure on those looking at outer Sydney so they look further afield and so on.

    Northern Illawarra has had its increase partially due to the Sydney and in turn this pushes buyers from that area further south.

    Hence the ripple effect.

    Working the same way up North.
     
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  6. alexm

    alexm Well-Known Member

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    Chilli is spot on. I suspect anecdotally that most buyers in the northern illawarra are from Sydney. They're priced out of the Sydney market and are looking further a field. Wollongong presents a great option as there are good transport links into Sydney, and some value for money compared to what their Sydney dollars will get them.
     
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  7. Ramos023

    Ramos023 Active Member

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    2528 hey! Good old Barrack Heights I wanna say?