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Summer Review: Scarborough Property Market

Market Overview

Introduction to Scarborough - Scarborough, a serene coastal village located in the northern Illawarra region of New South Wales, is renowned for its picturesque beaches, lush greenery, and strong sense of community. Positioned just 60 kilometres south of Sydney and nestled between the Pacific Ocean and the Illawarra Escarpment, this charming suburb offers residents a tranquil lifestyle with easy access to Wollongong and Sydney. Scarborough attracts families, retirees, and professionals seeking a peaceful yet connected living environment.


Summer Market Trends

The summer season in Scarborough saw a stable property market characterized by limited activity due to the suburb's small size. Buyer interest remains robust, particularly from those seeking coastal retreats and lifestyle properties. The scarcity of available homes has continued to sustain property values and maintain strong demand.


Sales Data

Total Properties SoldNumber of properties sold: 4

Sales by Property Type

Property Type

Number of Sales

Houses

4

Apartments

0

Townhouses

0

Median Sale Prices

Property Type

Median Sale Price

Houses

Not disclosed*

Apartments

N/A

Townhouses

N/A

*Due to the low number of transactions, specific median prices are withheld to maintain privacy.


Notable Sales

  • A charming four-bedroom home with ocean views sold for approximately $2,800,000, highlighting the value of properties with premium locations.

  • A renovated three-bedroom property fetched $2,300,000, showcasing demand for move-in-ready homes.


Rental Market Insights

Median Weekly Rent

Property Type

Median Weekly Rent

Houses

$850

Apartments

N/A

Townhouses

N/A

Vacancy Rates

Vacancy rates in Scarborough remained exceptionally low at 1.2%, driven by strong rental demand and limited supply.

Rental Demand and Tenant Profiles

Scarborough's rental market continues to attract families and professionals looking for a peaceful coastal environment within commuting distance to Sydney or Wollongong. Properties with proximity to the beach or offering scenic views remain highly sought after.


Rental Yield Comparisons

Property Type

Median Sale Price

Median Weekly Rent

Annual Rental Yield

Houses

$2,500,000

$850

1.77%

Apartments

N/A

N/A

N/A

Townhouses

N/A

N/A

N/A

Buyer Trends

Key Demographics

  • Families prioritise a safe and tight-knit community.

  • Professionals seeking a coastal escape while maintaining accessibility to major cities.

  • Retirees are drawn to Scarborough’s tranquil lifestyle and natural beauty.

Buyer Preferences

  • High demand for homes with ocean views or within walking distance of the beach.

  • Interest in modern properties with low-maintenance designs and energy-efficient features.

  • Properties offering outdoor entertainment spaces or large gardens are particularly appealing.


Median Property Price Trends (Last 6 Months)

Month

Median House Price

Median Unit Price

August 2024

$2,550,000

N/A

September 2024

$2,525,000

N/A

October 2024

$2,510,000

N/A

November 2024

$2,500,000

N/A

December 2024

$2,500,000

N/A

January 2025

$2,475,000

N/A

Market Influencers

Economic and Seasonal Factors

  • Rising interest rates have tempered some investor activity but had minimal impact on lifestyle buyers.

  • The summer holiday season brought a surge of interest from out-of-area buyers, particularly from Sydney.


Local Developments

  • Continued improvements to transport options, including upgrades to nearby train stations, enhance Scarborough’s accessibility.

  • Community-driven events and festivals added to the area's strong local appeal during summer.


Outlook for the Coming Months

Market Predictions

  • Continued strong demand for properties in Scarborough, particularly for homes priced between $2 million and $3 million.

  • Increasing interest in boutique developments and high-end properties as the suburb’s popularity rises.

Opportunities

  • For Buyers: A chance to secure a home before autumn competition intensifies.

  • For Investors: Low vacancy rates and consistent demand position Scarborough as a reliable option for long-term investment.

  • For Renters: Newly listed rental properties are expected as landlords prepare for the peak rental season.


Sources

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