The lengthy boom in Sydney property prices is rippling through to regional centres such as Wollongong and Newcastle. So if you’re willing to go beyond the big smoke, these areas might offer good buying opportunities right now.

Consider, for example, that the median price on a three-bedroom house in Wollongong has jumped 10% to $740,000 in the year to August, as per the REA Group, well below Sydney's $1.1m median property price at auction.

Indeed, affordability is a big driver for people looking at Wollongong and the Illawarra region overall, according to property advisory Herron Todd White (HTW).

“Combined with access to established and developing infrastructures and a coastal lifestyle, it’s hard to understand why people are putting up with a 60 to 90 minute commute across Sydney when they can live close to some of the state’s best beaches for a more affordable price with a similar commute time," says HTW in its most recent monthly report.

Who’s leading the regional boom?

Buyers’ agent at Precium in Wollongong, Matt Knight says that there’s a shift happening, with people priced out of Sydney or looking for a better lifestyle now turning their attention to the NSW coast.

“The clients I’m getting are a mixture of baby boomers and younger families that want the lifestyle,” says Knight. “They might work in the building game or in health or other government services. I’ve even had corporate HR execs buying beach houses so they can ditch the office and only go up [to Sydney] for a meeting when they have to.”

While known for its steel production, Wollongong’s economy has transitioned toward education, tourism and aged care lately, which has helped to broaden its appeal. There are also a growing number of people who work for themselves or aren’t tied to a Sydney office, says Knight.

For instance, Sydney landscaper Mick Azar wanted to reduce his mortgage and get more value for money on his property. So he and the family moved from their 380 square metre property in the city’s east to the seaside suburb of Thirroul, just north of Wollongong central. They now enjoy a bigger home with a double garage on half an acre.

“It’s close to the beach, the people are friendly and there’s a train that goes to Sydney,” says Azar. “There are a lot of families around - people that looked in Sydney and then came down here."

Azar says that most of their friends in the area are also owner-occupiers but he suggests that given prices rises of late, there are probably more investors around now.

The median price on a three bedroom house in Thirroul is $897,000, as per REA Group, while four bedrooms is likely to be over $1m.

Knight says there are also retirees who are selling their Sydney homes and getting great value for money on a beachside house down south, usually priced between $700,000 and $1m. 

He says there’s a range of property preferences among prospective buyers but that many people want a house with some land.

“Most people want room for the grand kids," says Knight. "So retirees want single level living if they can, though some want three-bed, two-bath, or four-bed, two-bath. For younger families it’s a mixed bag.”

New opportunities in Newcastle

Just north of Sydney, Newcastle’s property market has similar factors driving it and, as such, is seeing plenty of interest from prospective property buyers, too.

Chief executive of Positive Real Estate, Sam Saggers says Newcastle is a favourite among Sydney investors and first homebuyers and that, as a result, the market is going strong.

"Rents (returns) are still great as there is an undersupply of land," says Saggers. "New home and land releases are years away in some cases, meaning the market is really dependent on the current stock. So rental yield averages are over 5% and in some cases still up around 5.3%."

Saggers says that $500,000 can secure you a new four-bedroom house in the area, only 15 minutes to the beach and five minutes to the freeway to Sydney. New units can also be good value.

With its expanding economy, which includes a huge shipping port, QBE forecasts house price growth of 15% over the next three years, which would lift the median value to $540,000 by June 2018. 

Keep in mind that this price point is more likely to reflect suburbs five or 10 kilometres from the centre of town like Adamstown or Mayfield.

Read more:

Sydney property streaking ahead

Beachfront home in Coledale

Rents are rising more quickly in regional areas than in cities

Baby boomers to ignite regional property markets