Illawarra Property Values Drop for Fourth Straight Month

Property values in the Illawarra decreased across all categories in August, marking the fourth consecutive month of decline. According to the national Home Value Index from Cotality, monthly price drops ranged from 0.2 per cent to 1.3 per cent, with the median dwelling value reaching $1,055,431. The 1.1 per cent monthly decline for all dwellings represents the sharpest drop since January 2023, though house values remain up 2.5 per cent over the past year.

Cotality research director Tim Lawless describes the region as being in the early stages of an entrenched downturn. He suggests that downward pressure on values could persist through the end of the year and potentially into 2027, driven by interest rates, budget tax changes, and poor market sentiment. Lawless notes that while listings have increased by 9 per cent compared to last year, buyers currently lack the confidence to enter the market while prices are falling.

Louie Piculovski of The Agency Illawarra offers a different perspective, arguing that current low demand presents an ideal opportunity for buyers. He attributes the current market sentiment to negativity in the media and coverage of budget tax changes, asserting that the region still possesses strong demand despite the lack of supply.