NSW coastal town now $177,000 cheaper
House values in Kiama on the NSW South Coast are rising again after the town’s pandemic boom and bust.
As homebuyers seek a sea change and better value, they are finding more affordable options in the area.
Although prices have not reached previous highs, buyers are benefiting from discounts compared to what others paid years ago.
The median house value for Kiama LGA is now $1,552,008, reflecting an 8.5% increase since March 2023.
However, it is still 10.3% below the record high of $1,729,307 in May 2022, according to CoreLogic.
This peak was set during a period of low interest rates and widespread remote working, which later changed.
When interest rates increased and workers returned to offices, home values began to drop from their previous highs.
Meanwhile, unit prices have stabilised at a median value of $897,538, 10.5% lower than the June 2022 peak.
According to CoreLogic research director Tim Lawless, Kiama has become slightly more affordable since the pandemic’s price surge.
Nevertheless, the area remains more expensive compared to its pre-COVID market.
“Despite the decrease from record highs, the market for houses is still 47% above pre-pandemic levels,” he explained.
The median house value in December 2018 was $1,034,342, while the median unit value stood at $743,355.
Lawless noted that Kiama’s median house value is not far from Greater Sydney’s, which is $1,470,625.
For buyers with the financial means, the slight price drop presents an opportunity to enter the Kiama market.
“In a different context, that 10% drop represents roughly $177,000,” he stated, emphasizing the opportunity.
“In dollar terms, it could be seen as a reasonable improvement for those who missed out at the peak.”
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Prices have increased, even though buyers still have plenty of options. In December 2024, total listings were 27% higher.
Compared to the same time the previous year, stock levels have risen significantly, yet buyers are still active.
Despite the high stock levels, the typical vendor now discounts their home by only 3.6% to secure a sale.
This is a significant improvement from the more than 10% discount seen during the market downturn.
Homes are also selling faster than last autumn, with the median selling time now reduced to 49 days.
This suggests vendors are adjusting their price expectations to meet the current market conditions, improving sales efficiency.
“Listings are still 48% above the 10-year average, so reduced discounting and faster sales indicate a shift in vendor mindset,” Lawless said.
Michele Lay from Ray White Kiama has sold most of the riverfront properties in Minnamurra, located in northern Kiama.
She mentioned that while some buyers are sea-changers, many are actually from the local area itself.
“Sydney interest accounts for 10%, but much of the demand is from local buyers,” Lay explained.
“Kiama residents often love the area so much that they upgrade to larger properties, moving from waterfront reserve to absolute waterfront.”
There are only 22 homes along the river, with just six having original boatsheds, making these properties very tightly held.
Lay has listed 120 Charles Avenue with a price guide of $5.8 million to $6.2 million.
The vendors, Gai and Terry Sinclair, are selling the home they purchased 35 years ago in order to relocate to Melbourne.
Terry believes the appeal of Minnamurra lies in its short commute to Sydney, offering a break from the hustle and bustle.
“It’s less than a two-hour drive, and few other destinations offer beach and country life so close to Sydney,” he said.
Gai added, “Buyers can dive off the deck at high tide into crystal-clear waters and enjoy the local marine and bird life.”
The couple has been watching the Kiama market, waiting for the right buyer for their property.
“Homes on the Minnamurra waterfront don’t come up often, so locals have shown significant interest,” Terry explained.
Downsizer Lynda Cloughessy is selling her $1.66 million home at 9 Cole Street in Kiama but plans to stay nearby.
She appreciates Kiama for offering the best of both worlds. “In summer, the town is vibrant and full of life,” she said.
“There’s so much to do, and in winter, it’s the perfect place to just relax and unwind.”
Lynda also highlighted the friendly community, saying, “Everyone here is so welcoming, and there’s a wonderful lifestyle to enjoy.”
