THE Kiama municipality's housing market is becoming increasingly attractive to Sydneysiders, while first home buyers are being forced to look elsewhere to purchase.
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Treasurer Joe Hockey recently advised first home buyers to "get a good job that pays good money" in order to infiltrate Sydney's housing market. His comments were in response to a housing price surge of 12.4 per cent in 2014, driving the median Sydney house price up to $900,000.
Australian Bureau of Statistics Census statistics list the Kiama municipality as having a median household income of $1234 per week, with Kiama Heights having the lowest median of $1110.
According to Domain, for the March quarter in the Kiama LGA, a house had a median price of $628,000, representing a one-year growth of 3.8 per cent and five-year growth of 14.7 per cent.
For a unit within the same time period, the median was $445,500, with growths of 12.6 per cent and 18.8 per cent respectively.
Dr Andrew J. Wilson is senior economist for Domain Group, one of Australia's leading property industry online destinations.
Dr Wilson said Kiama's "reasonable rise" during the past year was not surprising.
He said affordability was an issue, with Kiama's median price one of the highest of regional centres in NSW.
He said the market was set to grow as the wealth effect of Sydney kicked in, as buyers there looked closely at markets like the South Coast.
"That energy is working its way south from Sydney, and would expect it to continue," he said.
"Sydney house prices just keep rising ... The sense of getting a weekender, a sea change, that will suit Kiama to a T."
Raine and Horne Kiama owner Steve Pryor said $900,000 represented the "hot end" of the market, saying anything around that figure was selling extremely well - within two to four weeks of hitting the market.
"We've recently sold blocks of land at Bombo for that price," he said.
Mr Pryor said other options for that price were a "fairly modern" house away from the water (four-bedroom, two bathroom, two car), or an old two to three-bedroom cottage, located near, but not on the water.
He said such properties near, but not on the water were typically going within one to two weeks.
Mr Pryor said at auction, properties were averaging about 10 to 15 per cent above the reserve.
Recent sales included a Bong Bong Street, Kiama property, an old cottage located in a business/residential zoning, which sold for $875,000.
Mr Pryor believed investors were pushing up prices within the area, with "Sydney buyers selling for big money and flush with funds" and a lack of supply key factors.
"We don't sell to first home buyers any more; especially in that price range," he said.
"They're going to Shellharbour, Albion Park and West Dapto instead as they can't afford it here."
According to domain.com.au, a three-beds, three-baths, two-parking beachside, recently renovated home in Allambie Crescent, Kiama (located on a 1117m2 parcel of land) sold for $881,100 in June.
