Understanding the Two-Speed Market in the Illawarra Region

Apr 9
3 min read

The Australian property market continues to evolve. March has confirmed what many in the industry are already observing — we are now firmly in a two-speed market.

National Snapshot – Growth Slowing, But Still Positive

Nationally, housing values recorded a modest rise of approximately 0.3% in March, bringing annual growth to around 9.4%. While this is still strong, the key takeaway is that momentum is clearly moderating compared to the rapid growth seen through 2024–2025.

Median home values now sit around $900,000+ nationally.
Annual growth remains solid but is trending down.
Interest rate pressure is beginning to influence buyer behaviour.

A Two-Speed Market Has Fully Emerged

What’s happening across Australia is no longer uniform.

Stronger-Performing Markets

Perth (+2.3% monthly growth recently)
Brisbane (+1.6%)
Adelaide (+1.3%)

Flat or Softening Markets

Sydney (minimal growth / early decline signs)
Melbourne (largely flat)

This divergence is being driven by:

Affordability constraints in major cities.
Strong population growth in smaller capitals.
Severe supply shortages in key regions.

The result? Buyers are shifting to more affordable markets, driving growth outside Sydney and Melbourne.

Where the Market Sits Right Now

Across the Illawarra region, we’re still seeing steady underlying demand, but the pace of growth has clearly moderated.

Buyer enquiry levels remain solid.
Open home numbers are still consistent.
However, urgency has softened.

In simple terms: the market hasn’t dropped — it’s matured.

What We’re Seeing On The Ground

From active campaigns across areas like Warilla, Shellharbour, Barrack Heights, and Corrimal, here’s what I’ve noticed:

Buyers Are Still There — But Smarter

Buyers are taking more time before making offers.
Building and pest conditions are back.
Negotiation has returned.

Price Sensitivity Is Now Key

Well-priced homes lead to strong competition.
Overpriced homes are sitting longer and facing price reductions.

Days on Market Are Stretching Slightly

Not dramatically, but noticeably compared to last year.
Presentation and pricing now matter more than ever.

The Rental Market Remains Extremely Strong

This is where the Illawarra continues to outperform.

Vacancy rates remain critically low.
Rental demand is still outpacing supply.
Premium rents are being achieved for well-presented homes.

In some cases, we are still seeing:

Multiple applications per property.
Strong weekly rents well above older market averages.

This continues to make the Illawarra a very attractive region for investors.

My Take (What This Means for You Locally)

From what I’m seeing on the ground, the data aligns closely with reality:

Buyers are still active — but more price sensitive.
Well-priced properties are still selling quickly.
Overpriced homes are now sitting longer.
Rental demand remains extremely strong.

The biggest shift is that strategy now matters more than ever.

Understanding Your Position in the Market

Navigating the current market can feel overwhelming. However, understanding where you stand is crucial. If you’re considering buying, selling, or investing, it’s essential to know how your property fits into this two-speed market.

For Sellers

Pricing correctly from day one is critical. The market rewards those who are realistic about their property's value.

For Buyers

There are more opportunities to negotiate. Take your time, do your research, and make informed offers.

For Investors

Strong rental conditions continue to support long-term growth. This is an excellent time to consider adding to your portfolio.

Final Thoughts

March confirms that we are not heading into a downturn — but rather a more disciplined, data-driven market.

If you’re thinking about buying, selling, or investing, now is the time to understand where your property sits within this two-speed market.

Feel free to reach out — I’m always happy to give you a clear, honest view of your position.

The phrase “Matt Borg Real Estate aims to be the most trusted and comprehensive real estate partner in the Illawarra region” reflects my commitment to guiding you through successful property transactions while upholding integrity and building lasting relationships.