Why ‘attractive’ Lake Heights is primed for a real estate boom

An Illawarra real estate agent has pinpointed one central suburb as “the best median point” for first-home buyers.

The housing market is a daunting place for first home buyers, but an Illawarra real estate agent believes there is value to be found in Lake Heights.

First National Real Estate agent Oliver Koltovski sold twin two-storey four-bedroom duplexes at 200-204 Flagstaff Road earlier this year with the four off-the-plan townhouses attracting more than 70 inquiries and selling within 48 hours.

The four units, which will be completed between mid-to-late 2022, sold for a combined $2.75 million, slightly above the price guide of $680,000 each.

The final figures are significantly less than a newly renovated four-bedroom house diagonally across the road which sold for $1.1 million in September.

The empty lot on the corner of Flagstaff Road and Lake Ave used to be a petrol station. Picture: Dylan Arvela

The lots, which have an average size of 339m2, are located on the intersection of Lake Ave and have been empty for decades after the closure of a petrol station.

Mr Koltovski said Lake Height’s position in the Illawarra makes it a hidden gem with the Dapto-based agent signalling his 200-204 Flagstaff Road sale is a sign of things to come.

“Lake Heights is a central location between Wollongong and Shellharbour,” he explained.

“You’ve got the lake at your doorstep, there’s easy access to highways, you’re within close proximity to all the key places and you can enjoy the lifestyle of the Illawarra coast given how close you are to so many beaches.

“We have got multiple sites coming up in the area ranging from standard duplex sites to multi-dwellings for up to eight (people).

“They are all going to be brand new off the plan. They’re vacant sites, the (development application) has been approved and they’ll be ranging somewhere in the $700,000s.”

Real Estate data from CoreLogic showed 27 units were sold in the 2502 postcode, which includes Lake Heights, Cringila, Warrawong and Primbee, in the 12 months leading to September.

The median value was $575,338 which is a 22.8 per cent jump on the previous year and nearly double the value of units sold in the postcode a decade ago.

Despite the price hike, units in Lake Heights and surrounds can still be found at a sizeable discount compared to the rest of the Wollongong LGA where the median value is hovering just above $700,000.

Mr Koltovski said value can be found in the central Illawarra suburb, making it an appealing option for people looking to land their first home.

“It’s an attractive area for first home buyers,” he said.

“You can still get something brand new off the plan for under $800,000. There was a recent one which came on the market, a four-bedroom duplex, for $900,000 – it’s crazy.

“Lake Heights and this area is certainly one of the best median points for those looking for their first entry into the market.”