July Market Update

Cotality’s July data for the Illawarra saw a big uptick in values, with the regions properties set to make record highs.

Values across the region climbed 1.6 per cent in the three months to July, with the median property value over a million dollars at $1,008,000.

Cotality’s head of research Eliza Owen forecasts fresh highs for the region. “It is still overall 1 per cent below the peak of May 2022, but with the current pace of growth across the Illawarra and the likelihood of an interest rate reduction in August, we will likely see this market back at a fresh record high in a matter of weeks.”

The strength in the market is being felt by both houses and units.

What’s driving the market?

News that the Illawarra is about to enjoy fresh highs in the property market augurs well for sellers with fresh momentum in the market driven by increasing buyer confidence, optimism about interest rate cuts, and limited supply on the market.

Cotality head of research Tim Lawless says that affordability constraints and lingering uncertainty are giving way to new highs. But Eliza Owen sites the fall in supply in the Illawarra as a big part of the story.

“Even comparing this July to July 2024, total listing volumes have fallen year on year. That could be supporting that steady increase in values,” she said. The market is also being driven by wider macro economic trends with an easing interest rate environment.

It is expected that the market will finish the year with a 2.5% year on year growth.

Australia a nation of property millionaires

A new report by Swiss bank UBS has found that one in ten Australians are now millionaires – and that is thanks to recent strong growth in the property sector. Those lucky enough to join the seven-figure club is expected to grow 20% by 2028.

Australians love affair with property means that it now sits at $10.5 trillion in the sector (to put that in perspective, that is is two and a half times the $4 trillion in the superannuation slush fund and ten times the $1.5 trillion on the ASX). Australians are now seventh on the millionaires list behind countries like US, China, Germany and Japan.

With most economists tipping at least two more interest rate cuts between now and the end of the year, the onward and upward march of real estate is expected to continue.

Mount Ousley interchange adds shared footpath

This month’s spotlight is on Mount Ousley, which has been the Illawarra’s star performer. Cotality figures show that the tightly held suburb has put on 5 per cent in the three months to the end of July.

Anyone taking the trip up the expressway to Sydney will have seen massive roadworks that are set to transform access to the motorway and university with a new interchange that will make the foot of the mountain easier to access. The NSW Department of Transport last month announced that a shared footpath will now be integrated into the plan, making access to the University easier for walkers and cyclists.

Transport NSW announced that a new four-metre wide walkway will be constructed adjacent to McMahon St. as well as a raised pedestrian crossing at Dumfries Ave.

These new plans will improve the safety and accessibility of both TAFE and the University.