Kiama, NSW, has had the most extraordinary year in 2021, with residential and land values observing the sharpest increases in 17 years.
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Kiama Real Estate – Residential Values
Median house prices increased in every major Australian property market last year, but in regional areas away from the big cities, values climbed by more than 30 per cent, according to a CoreLogic analysis.
While Byron Bay, Northern Beaches and the Gold Coast are on the list, Kiama, on the NSW South Coast, had a 39.5 per cent increase in residential values.
This was due to a big shift away from capital cities, as more people are able to work from home, together with record-low interest rates.
Home to natural landscapes, including its famous blowhole – the largest in the world, small-town atmosphere, friendly locals and enjoyable climate, it’s no surprise that increasing demand in the Kiama real estate market has resulted in a dramatic property price growth.
CoreLogic research director Tim Lawless said areas near the beach within a two-hour drive of a capital city dominated the entries.
“The top-performing regional areas were all coastal or lifestyle markets generally within a two-hour commuting distance of a capital city,” he said.
“These areas fit within the broad trend where demand has surged for lifestyle properties that offer a blend of liveability and commutability.”
Kiama Real Estate – Land values
In terms of land values, The NSW South Coast’s price has climbed by over 30 per cent since July 2020 (according to SQM Research). Data from realestate.com indicates that Kiama real estate values rose by 40 per cent since July 2020, demonstrating the high demand.
According to the Valuer General, the price rises in rural land were also driven by people relocating from Melbourne, Canberra, and Sydney for a lifestyle change. This attracted high demand to a limited supply area, where properties are held tightly.
In 2021, the value of commercial land climbed by 22%, a turnaround from 2020, where commercial land value dropped by 4.8 per cent in 2020. There was a significant increase in demand from owner-occupiers and investors across NSW South Coast, driving a tightening of supply for commercial land.
What’s ahead in 2022 for regional areas?
In contrast to slowing momentum across the capital city market, a pace of growth is observed in regional dwelling values. According to the latest CoreLogic report, regional property values were up 6.4% in the three months to December 2021, compared to the 5.1% rise recorded in the September quarter.
What’s in store for Kiama?
In addition to a flourishing property market, it comes as no surprise that the tranquil coastal town of Kiama is an ideal place for a sea change.
With the serene presence of the Pacific Ocean, the iconic lighthouse, the world’s largest blowholes, and breathtaking green landscapes, Kiama has always been a draw for retirees seeking a relaxing haven.
The town’s primary attractions are its beautiful seaside beaches that stretch along the entirety of New South Wales’s South Coast, including Easts Beach, Black Beach, Kiama Surf Beach, and Kendalls Beach. These natural wonders are complemented by the allure of Minnamurra Rainforest and the Saddleback Mountain Lookout, perfect for those who enjoy bushwalking.
In addition to Kiama’s natural splendour, its favourable climate and a comparably small population in contrast to the bustling lifestyle of Sydney, make it even more appealing.
Kiama isn’t just attracting the “baby boomer” generation; young professionals and families are also capitalizing on the short 90-minute commute from Kiama to Sydney. Situated at the southern terminus of the train line to Sydney’s airport and CBD, Kiama offers unparalleled connectivity for everyone.
Nestled perfectly within Kiama’s tranquil surroundings, Ridgewaters Kiama features a variety of three-bedroom apartments with open-plan living, high-quality European Franke appliances, and breathtaking views of the escarpment. Ridgewaters Kiama is the ultimate retreat for a diverse range of buyers, spanning retirees and young families to investors and vacationers seeking a relaxed coastal lifestyle.
What factors influence Kiama’s real estate market?
Several factors influence house prices in Kiama, including the state of the economy, supply and demand, interest rates, infrastructure development, and the overall desirability of the area.