‘Out of breath’: Newcastle, Wollongong join Sydney property price downturn
" The market is out of breath after a big run up in prices"
Andrew Wilson - domain group
9 regional towns in NSW saw falling property prices in the September quarter. As investors and young buyers were pushed our of the Sydney property market they headed south to Wollongong and north to Newcastle. As a result Wollongong's property market has BOOMED over the last 2 years with the median average of a house topping at $754,000 in June 2017 and achieved an annual growth of 13.40%. But now, just like Sydney these 'new found' real estate hot spots have recorded a drop in prices.
Over the September quarter, prices in Wollongong fell 1.9% (matching Sydney) and prices in Newcastle dropped 2.5% over the period.
Experts say it's not surprising these cities close to Sydney would experience the same effects as what we have seen in the Sydney property market.
"In all three cities it was a case of strong price growth pushing all three markets against a affordability barrier"
"Over 20% growth rate in a year is not sustainable"
- Andrew Wilson, domain group
There has been a decline in the number of people at open homes and auctions in Wollongong and has plateaued to a more fair market for buyers and sellers. Despite is, Shellharbour and the Shoalhaven is still experiencing growth due to a different buyer group such as retirees opting for a sea-change.
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