The once-booming NSW coastal town that’s now $177,000 cheaper

House values are picking up again in Kiama on the NSW South Coast after the town’s pandemic boom and bust as home buyers seek a sea change and better value.

Prices are not yet back to their peaks, so home buyers have been taking advantage of discounts relative to the prices others paid a few years ago.

The median house value for the Kiama LGA is $1,552,008, an increase of 8.5 per cent since its trough in March 2023.

It remains 10.3 per cent below the record high of $1,729,307 in May 2022, CoreLogic data shows, set in a context of low interest rates and widespread remote working. Values then fell when interest rates rose and workers returned to offices.

Units have stabilised at a median value of $897,538, 10.5 per cent below their peak of $1,002,300 in June 2022.

CoreLogic research director Tim Lawless said Kiama had become modestly more affordable after a surge during the pandemic, although it remains more expensive than pre-COVID.

“Even though values are down from record highs, we’re still seeing the market for houses at least 47 per cent above pre-pandemic levels,” he said.

The median house value was $1,034,342 as of December 2018, and the median unit value was $743,355.

Lawless said Kiama’s median house value was not far off Greater Sydney at $1,470,625. For buyers with the means, the slight price drop is an opportunity to get into the Kiama market.

“In a different context, that 10 per cent drop equates to around $177,000,” he said. “In dollar terms, it could be seen as a reasonable improvement to some of the values for entry for those that missed out at the peak.”

Prices have picked up even though buyers have plenty of choice. Total listings were 27 per cent higher in December 2024 than at the same time the previous year.

Despite high stock levels, the typical vendor discounts their home by only 3.6 per cent to secure a sale, compared with more than 10 per cent during the downturn. Homes are also selling quicker than last autumn. The median selling time has fallen to 49 days, suggesting vendors are adjusting their price expectations to meet the market.

“Listings are still elevated at 48 per cent above the 10-year average, so to see discounting and time on market reducing points to vendors becoming more realistic and adopting a solid marketing campaign,” Lawless said.

Ray White Kiama’s Michele Lay has sold most of the riverfront properties in Minnamurra in northern Kiama, and she said some buyers were sea-changers, but many were also from the area.

“Sydney interest has been 10 per cent but a lot of it has been local,” Lay said. “Very often, Kiama residents love the area so much they just upgrade. They might go from a waterfront reserve position to an absolute waterfront.

“There are only 22 homes along the river and only six with original boatsheds, so it is very tightly held.”

Price Guide $5,800,000 - $6,200,000

120 Charles Avenue, Minnamurra NSW 2533

3

2

1

View property

She has listed 120 Charles Avenue with a guide of $5.8 million to $6.2 million. Vendors Gai and Terry Sinclair are selling the home they bought 35 years ago to move to Melbourne.

Terry believes the appeal of Minnamurra is its short commute from Sydney that’s enough to feel away from the hustle and bustle.

“It’s under a two-hour drive and there aren’t many other destinations that provide you with beach and country life so close to Sydney,” he said.

Gai noted: “Buyers of the property can dive off the deck at high tide into crystal waters and enjoy the marine and bird life.”

The couple have been keeping their eye on the Kiama market and are waiting for the right buyer.

“Homes on the Minnamurra waterfront don’t come up often so it’s been a subject of interest for the locals,” Terry said.

$1,660,000

9 Cole Street, Kiama NSW 2533

4

3

2

View property

Downsizer Lynda Cloughessy is selling her $1.66 million home at 9 Cole Street in Kiama and will stay in the area.

“Kiama has the best of both worlds. In summer, it’s vibrant and buzzing with so much to do, and in winter, you can just relax,” she said. Everyone is so friendly here as there’s a nice lifestyle on offer.”

Cloughessy is happy to wait for the right offer for her four-bedroom, two-storey home with pool and water views. “It’s a solid house and as a family, we’ve had a wonderful time.”

Her agent, Kathe Manansala of Raine & Horne Kiama, said there had been strong demand for the home, with interest from sea-change buyers and investors looking for a holiday home that generates positive return.

“Long-term rentals have had very low vacancy rates,” she said. “It’s an attractive holiday rental with its pool and water views. Investors can rent it out and still use it as a holiday home.”