THE real estate market in the Kiama municipality remains "buoyant", highlighted by the successful auction of a historic property on Bong Bong Street, according to the area's agents.

On October 11, the 731-square metre property at 57 Bong Bong Street, Kiama sold for $1,185,000.

The Kiama residence is part of a small strip of three homes listed on the state heritage inventory.

Constructed in 1888, it sits in Kiama's original dress circle, with views to the ocean.

It features two living spaces and five bedrooms.

Agent Ben Cohen of Ray White said the price was at the "high end" of expectations.

Michele Lay, director/licensee in charge at Ray White Kiama said it wasn't typically the high end properties that were selling.

"That property [Bong Bong Street] has great historic value, and a niche market will buy that.

"Anything really high [priced] is still a struggle.

"Anything in the $750,000 downwards is going extremely well at the moment, goes really quickly.

"The challenge is stock at the moment, the supply and demand equation.

"It's very buoyant [but] the challenge is finding more stock."

Mrs Lay said "all-time low" interest rates were also a significant factor in the boom.

Vivienne Marris, principal at Elders Real Estate Jamberoo also said the market was running hot.

"It's doing very well; mainly larger blocks of ground selling," she said.

Mrs Marris said they also met Sydney residents who wished to alternate between the city and Jamberoo.

"People are always wary of leaving the Sydney market because it can be difficult to get back into," she said.

"Some Sydney people are looking to buy a weekend thing that could become their principal place of residence when they retire."

First National Gerringong director Joe Dignam said there was somewhat of a housing shortage.

"The market is going good, [but] there's a bit of a lack of stock there."

He said the recent sale of all available blocks at Elambra Estate underlined the interest in the Gerringong area.