Middle to lower price segments are leading the charge in fast-paced growth across the Illawarra, propelled partly by the expansion of the 5 per cent deposit scheme. Photo: Region.
The Illawarra housing market roared to life in October, delivering its strongest monthly gain in more than two years and keeping pace with the nation’s property surge.
Home values jumped 1.1 per cent for the month — the same as the national average — as the region’s median dwelling price held firm above $1 million for a fourth straight month.
“The market’s really heating up,” Cotality Australia Head of Research Eliza Owen said. “To put it into perspective, the gain in monthly values in the Illawarra was 0.5 per cent from January to September, so to see a 1.1 per cent rise in one month is significant.”
The increase pushed Illawarra values five per cent higher over the year and slightly outpaced the broader regional NSW result of one per cent.
Nationally, October marked a turning point, with dwelling values rising at their fastest rate since June 2023 and annual growth reaching 6.1 per cent — a momentum shift Cotality says confirms “a new cycle of growth”.
“The trend isn’t just prices rising,” Eliza said. “It’s the rate at which they’re rising that really picked up in October.”
Locally, the strongest gains came from family-friendly pockets.
Home value increases for the past three months have been led by East Corrimal, where values went up by 5.4 per cent. Wongawilli followed with a 4.8 per cent rise, driven by new house and land releases appealing to young families “trying to establish themselves and perhaps getting priced out of Sydney”, according to Eliza.
Only a few suburbs bucked the trend. Balgownie was the weakest performer, down 1.2 per cent, followed by Stanwell Park, which was down 1.1 per cent.
The national lift coincided with the expanded 5 per cent deposit guarantee scheme, which began on 1 October and has intensified competition for more affordable properties.
“The interesting thing to note is under the 5 per cent scheme, the Illawarra has the same price cap of $1.5 million as Sydney,” Eliza said. “That covers a lot more markets in the Illawarra than in Sydney, so in a way, the scheme skews demand to regional areas.”
Markets below that threshold have led the charge, with growth largely driven by the middle to lower price segments. But Eliza said the surge reflected a mix of factors — from increased incomes and lower interest rates to the seasonal spring lift in transactions.
Supply is also tight.
“We observed 1445 properties on the market in October, and that’s down 16 per cent compared to last year,” she said. “That supply and demand drives not only the amount of growth, but a faster pace.”
With listings scarce and demand running high, the balance has clearly shifted.
“It’s a challenging market for buyers, but this spring is tipped in favour of vendors.”
