Local residents continue to reel from the record-breaking sales last month of 71 Werri Street, Werri Beach, for $7.55 million (Ray White Gerringong) and 160 Headland Drive, Gerroa, for $5.26 million (First National Coast and Country Gerringong).

Buyers are now calling this area of the South Coast ‘the new Byron Bay’, says First National’s sales agent Ryan Stalgis.

“For some time now, people have said that the South Coast is a hidden gem, but now the cat’s firmly out of the bag!”

Regional property price gains outpaced those in capital cities in the past financial year, rising 17.7 per cent against 12.4 per cent and recording the highest annual growth rate for regional property since May 2004 (18.3 per cent). June was especially strong, recording a 2 per cent rise across regional areas.

The Kiama area sits in a million dollar position, in the sweet spot from Sydney.

According to the latest CoreLogic data, the median price of property in Kiama Heights rose from $890,000 in May 2020 to $1.379m in May 2021, Gerringong/Gerroa from $946,000 to $1.31m and Kiama $913,000 to $1.29m for the same period.

Price rises are being fuelled by a recovering economy, ultra-low interest rates, low levels of stock on the market, the search for a relaxed lifestyle, remote working trends, this region’s ever-closer proximity to Sydney, and, most importantly, the spectacular views offered by our coast and hinterland.

“We are seeing a bit more supply this year than in previous years but demand is still far outstripping it,” says Mr Stalgis.

Anything, especially in the higher dollar end of market, we just can’t get enough of.”

Rumours of a sale in the vicinity of $10m surrounded the newly built Bunker House on the corner of Tasman Drive and Geering Streets, Gerringong.

Owner and Futureflip builder Neil Hipwell dispels these.

“We have had a few people offer to buy the Bunker House,” he says.

“We did have offers up to $10m. However, I made a promise to my wife that this was the home we would retire to one day, so we decided to make a good compromise and hold it, but to also do some private holiday rentals to get a bit of income back from it.”

Future Flip's Neil and Krystal Hipwell and their family, in front of their Bunker House. Credit Michael Boyle Photography

In Neil’s opinion, the Kiama, Gerringong and Gerroa property market is still very undervalued for how beautiful the area is.

“It’s the perfect distance from Sydney - you feel like you’re in the country with incredible beaches, but you still can access the city when needed.

“COVID has made people realise they can work from home and live on some of Australia’s best coastlines.”

Homes with proximity to or views of water or beach are seeing the strongest prices.

Stone Real Estate’s Helena and Greg Crumpton believe that prices in this area are relatively in-line with other sought-after coastal areas within 1.5 hours of Sydney like Avoca Beach and Austinmer.

“However, the capital growth and average price has risen strongly in Kiama in recent years,” says Mr Crumpton.

“The relatively close proximity to Sydney and the fact that this area is one of the most picturesque in the country is definitely making this area very sought after.” 

They recently sold a modest home in Percy St Gerringong to Paul Keating for $2.75m. The ex-Prime Minister plans to use the property, which has spectacular coastal views over Boat Harbour, as a holiday home.

However, not all buyers are coming from Sydney or interstate. Mr Crumpton says not to underestimate the local buyers, as these have fuelled some of his biggest recent sales.

“We have had a fairly even mix of owner occupiers and investors/weekender buyers in the high end of the market,” he says.

71 Werri Street, Werri Beach, recently sold for $7.55 million

First National’s Ryan Stalgis says he is seeing many buyers with a view to retirement in the market, “Buyers are definitely looking in the short-term to use these properties as holiday homes with an eye towards retirement. That’s what is motivating purchasers at this price.

“It’s not just an investment in which they hope for strong returns, but they want to use the home for the family later on, when they retire in say five years.

“There is an incredible demand for Gerroa - there always is in Gerroa - but property prices have skyrocketed over the last nine months. Buyers know that in this tightly-held market, prices will continue to rise over the long term.”