Neighbourhood Watch: Kiama Offers Picturesque Coast And Hobby Farms

Sparkling Kiama, a small coastal town with a bustling harbour in Australia’s New South Wales, has become a magnet for city dwellers looking for a change amid impressive scenery and a laidback lifestyle.

Lifestyle changes and unprecedented demand have buoyed real estate prices to heady heights in the past 12 months even above Sydney’s median house value.

Just a two-hour drive from Sydney, three hours from Canberra and 40-minutes from Wollongong, Kiama is a tourist haven with its natural blowhole claimed to be the largest in the world that shoots walls of water up to 30 metres high through a 2.5-metre opening.

The area, which is a rich agricultural centre, is surrounded by pristine surf beaches, rock pools, national parks and has seaside cafes and restaurants.

The Sydney International Airport and Sydney Domestic airport are both a 90-minute drive, while the nearest airport to Kiama is Wollongong Airport, which is 13.7 kilometres away.

Boundaries

The Kiama Municipality is in the Illawarra region of the state, south of Shellharbour and the City of Wollongong. Kiama is situated near the Minnamurra River and is framed by the Pacific Ocean, the Princes Highway and the South Coast Railway Line.

Price Range

A surge in city dwellers moving to this coastal area during the pandemic has seen demand for houses in Kiama increase dramatically reflecting a price hike and shortage of quality properties.

According to Eliza Owen, property data company CoreLogic’s head of research, the Kiama house market has vastly outperformed the broader region, with Kiama houses seeing value increases of 43.9% compared with 31.0% across the whole of regional New South Wales.

The apartment market has been more in line with growth in the state’s regional markets in the 12 months to January, with Kiama units up 24.6%.

“The surge in values has resulted in the median house value across the broader Kiama region reaching $1.6 million, which is above Sydney’s median house value, albeit Kiama is a smaller lifestyle market.” Ms. Owen said.

In his current portfolio, Daniel Watt of South Coast Prestige Properties lists a six-bedroom, two-bathroom house on Kiama’s coveted beachfront enclave for $6 million but said prices average from A$1.5 million for a quality home with coastal views.

Housing Stock

Sprawling luxury properties hug the beachfront or are on the edge of rural parcels, and there are some beautifully restored heritage cottages built for quarry workers in the 1880s. There are also high-and low-rise apartments with coastal and ocean views.

Kiama now has more houses and units for sale compared to the last six months of 2021 when agents described the market as “sizzling.”

Mr. Watt said quality housing was snapped up as soon as it came on the market last year and buyers had little choice, but the market has stabilized and there is now more for sale.

“Housing in the exclusive headland area with views up and down the coast always sells quickly but there’s been more choice for buyers of quality homes in the past few months,” he said.

What Makes It Unique

It’s all about lifestyle in Kiama, where nature stars in the form of stunning seascapes with magnificent beaches, where whales can be spotted from May to July and September to November.

The nearby hinterland is a lush green belt of dairy farmland, which gives it an English-country feel.

You won’t find any traffic lights and parking isn’t a problem.

The Budderoo National Park, Seven Mile Beach National Park and Barren Grounds Nature Reserve all within a 30-minute drive of Kiama are great for bushwalks and exploring.

Hikers chase waterfalls in the area, too, including Minnamurra, Carrington, Fitzroy and Belmore Falls.

Vivienne Marris, principal and owner of Elders Jamberoo Real Estate, said many residents commute to Sydney and Wollongong by rail to achieve a great work-life balance and enjoy a vibrant community.

“It’s a perfect lifestyle mix and there’s still a country feel about it with the sea one side and rolling green hills and farmland the other,” Ms. Marris said.

Mr. Watt agreed, saying it’s unique because of the close proximity to Sydney.

“That’s definitely a sweet spot—the city rail is excellent, and you can be there in less than two hours,” he said.

Kiama is an indigenous word that means “where the sea makes a noise” in reference to the famous Kiama Blowhole.

Luxury Amenities

Kiama has grown into a gourmet hub with seafront restaurants and quaint cafes that showcase the fresh regional produce the Illawarra region is known for.

You can pick up supplies at Wednesday’s Kiama Farmers’ Markets at Coronation Park with the surf beach as the backdrop.

The market kicks off with the ringing of a bell and produce includes fruit, vegetables, seafood, oysters, local Wagyu beef, honey, eggs, milk straight from the dairy, gelato made from local milk, cider, wine, mushrooms, cakes and tarts, preserves and sourdough bread.

Some great coffee spots include Wild Patch Cafe, which serves Byron Bay coffee and lots of healthy options.

Set on Kiama’s surf beach, Silica showcases homegrown produce from its own organic vegetable patch at Dapto Community Farm—the fish and chips and bar bites have a following.

Hanoi on Manning has been serving authentic Vietnamese food since opening in 2009.

For a sweet treat, head to Parfait Patisserie for delicious pastries plus breads and fruit tarts. The Little Earth Cafe near the Little Blowhole is an organic cafe and general store and is great for coffee and treats; and Flour Water Salt bakery, cafe and food store is known for its artisan sourdough, pastries and cakes.

The Pines Pantry located in a historic Collins Street Terrace House stocks award-winning cheese, bottled milk, yogurt and a range of artisan gelato made from the family-run micro- dairy The Pines on the nearby South Coast.

Mix art with food at the Little Blowhole Art Bar known for its cool tunes, clever cocktails and it’s a boutique art gallery. Book lovers will enjoy Bouquiniste with a selection of interesting books and coffee.

For shopping, Beachside Emporium sells art and design pieces by local designers and artists and Australian-made products. Meanwhile, The Inside Story has a great selection and for more retail therapy Deer Willow is stocked with global homewares and fashion, spread over two floors.

There are excellent schools in the area including the Illawarra Grammar School at Wollongong and Shellharbour Anglican at Dunmore as well as other schools in the highlands, all within 50 minutes.

Who Lives There?

Kiama is home to young professionals, families, retirees and many who have made a recent move but who commute to Sydney or Wollongong for work.

Ms. Marris said the hinterland attracts “hobby” farmers who want to run a few animals and have space.

“The demographic is moving to a younger element as traditionally it was farming and retirement, but we now have middle- to high-end-income residents, so the first home buyer is no longer as much a proportion of the community as it was, say 15 years ago,” she said.

Outlook

Like many high-performing markets across Australia, Kiama has likely hit a peak growth rate for the current cycle, with quarterly movements already starting to ease, according to Ms. Owen.

“Affordability constraints and a shift in the interest rate cycle (as well as significant progress in vaccination and easing of social distancing) will see growth rates soften across this market over 2022, with the potential for price falls when the [interest] rate rises,” she said.

Long term, however, Kiama has excellent prospects for further growth and development.

“The Covid crisis has awakened many to the possibility of living in a commutable, regional center, and the south coast of New South Wales continues to develop an appealing lifestyle with wineries, breweries, gift shops and cafes,” Ms. Own said. “Like most areas that undergo this kind of shift and demand from relatively high-income earners, this will present a mix of opportunities and disruption for locals, as employment opportunities expand, and real estate markets continue to rise in value.”

Ms. Marris said the past year is not really a good indicator, as some areas saw values increase 60% in only the last six months.

“FOMO—the fear of missing out—has played a large part in the peak of the market in August, September, October when we had little to offer and a demand not quite seen before,” she said.

“That has now cooled, settled with more property coming on to the market.”

Shortly after Bryan Graybill and Daniel Dokos moved into their dream home in Sag Harbor, N.Y., in 2022, the couple realized they had a problem: Their beloved Covid dog, a redheaded goldendoodle named Rufus, didn’t like the house.

“He was sort of a little pouty,” said Graybill, an interior designer, who said they adopted Rufus from a dog breeder in Montecito, Calif., where they rode out the pandemic.

Now, the couple is doing what any self-respecting dog parents would do: They are moving.

“I’m slightly ashamed to admit that we’ve become ‘those people,’ making life decisions around our dog,” said Graybill. And yet, he said, “He’s the joy of our life.”

The house is coming on the market for $14.95 million, said Preston Kaye of Hedgerow Exclusive Properties, which is co-listing the property with Noble Black and Erica Grossman of Douglas Elliman . Graybill and Dokos, a lawyer, who also have homes in East Hampton and Montecito, plan to split their time between the two. They also have a place in New York City.

Before Rufus, Graybill said the couple thought the newly built Sag Harbor house would be their “forever home.”

When they got married in 2015, they lived mainly in East Hampton and began building a house there. During construction, they rented a place in Sag Harbor and unexpectedly fell in love with the area and bought property there, too. “It’s sort of a vibrant little town, even in the middle of winter,” Graybill said. They wound up renting out the newly built East Hampton house until recently.

In 2018, they paid $2.65 million for a nearly ½-acre property in Sag Harbor with about 110 feet of frontage on Upper Sag Harbor Cove. Graybill said at the time, the property had a modest, roughly 1,600-square-foot house built in the 1950s.

Graybill said he initially assumed the house would be overly-complicated to renovate because of its proximity to the water. “Buying the property was a roll of the dice,” he said. “We didn’t know how much we could do.”

As it turned out, they could do quite a bit.

Diving into historic research, the couple learned that a stretch of the now-defunct elevated railroad that once ran from Bridgehampton to Sag Harbor crossed a corner of their property, which was also home to a warehouse during the area’s whaling heyday in the 1800s.

With approval from local officials, Graybill and Dokos substantially renovated the 1950s home, building a roughly 4,200-square-foot house with five bedrooms in its footprint. “It required a huge feat of engineering acrobatics to figure it out,” Graybill said. Because the house is set back 12 feet from the water, they were able to add a pool, a pool house and a two-car garage between the house and the street.

Graybill said the property’s original 1880s building inspired him to commission a warehouse-like structure with loading dock doors, high ceilings and open spaces. Part two of the design was to convert the industrial space to a home, using features like interior window walls. Permitting took about three years, and it took another two years to complete construction.

Graybill said despite being smaller than their East Hampton home, which is about 6,500 square feet, the house in Sag Harbor felt “intimate” and had all the amenities they wanted, including a pool, a pool bar and an office that looks west over the cove and north over a marsh and bird sanctuary. Graybill, who trained in London under the late restaurant designer David Collins , said he adopted certain U.K. sensibilities in the Sag Harbor home, such as high-set windows to maximise natural light, and a “boot room” near the front door where visitors can sit and remove their shoes and coats. The large kitchen is a “working” kitchen with pots and pans hanging within reach. “It’s not a relaxation area,” he said. “You’re in the kitchen to cook.”

They spent about $8 million on construction, landscaping and hard and soft costs, Graybill said. “I thought it would be our forever home, so I really leaned into everything being custom.”

Graybill said they “went a little indulgent” on interior finishes like light fixtures, paint, plaster and kitchen appliances, and the windows were made in Charleston, S.C., by a company specialising in historic windows.

The median sale price in Sag Harbor was $1.9 million during the fourth quarter of 2023, down 12% from the prior-year period, according to real-estate appraisal firm Miller Samuel. But sales were up 61.5% year-over-year during the quarter, while inventory rose 16.8% compared with the fourth quarter of 2022.

Graybill said they designed the house before adopting Rufus, so there are no doggy amenities. “Gosh no, and as a result he sleeps in the bed with us and walks freely on whatever furniture he wants,” he said. After a romp on the beach, Rufus also bathes in their tub. (Graybill said part of the decision to move to East Hampton is that the house there has a covered porch where they can put a dog sink.)

Like other pet owners, Graybill and Dokos adopted Rufus during Covid when they were living in Montecito and spending more time at home. “Dan had never had a dog,” said Graybill, who grew up with poodles and lab retrievers and was initially reluctant to get a dog because he knew how much responsibility it would be. “We like our freedom,” he said.

But Graybill said one night as they lay in bed, Dokos texted him a picture of a local breeder’s two golden doodles. “One was William and one was Harry,” he recalled. When they went to see the dogs the next day, Harry—the smaller of the pups—ran right up to Dokos. They brought him home that afternoon and named him Rufus, which means redheaded in Latin. The trio fell into a new routine that included daily jaunts on the beach.

Graybill said when they moved to Sag Harbor, Rufus’ joyful demeanour changed.

They took him to nearby bay beaches, but they were narrow and a bit rocky. “The dog was constrained,” Graybill said. He couldn’t run as fast or as far as he had in California. “He couldn’t dig.”

Graybill said he and Dokos thought Rufus would acclimate until they drove to East Hampton one day and the dog was back in his element. “The smile on his face—if dogs could smile—I said to Dan, ‘I think the dog is happier in East Hampton,’” Graybill said.

Graybill said he has no regrets about deciding to sell the house, in part because he and Dokos enjoyed the building process together. “I’m giving up this life we wanted to build in Sag Harbor,” he said, “but I’m gaining this daily ritual of going to the beach with my husband and dog, and I just really cherish that.”

Neighbourhood Watch: Kiama Offers Picturesque Coast And Hobby Farms

The seaside Australian town, home to the world’s largest natural blowhole, has boomed amid the flight to less dense areas

Bryan Graybill and Daniel Dokos built their dream home in Sag Harbor but are now selling it because their goldendoodle Rufus gets “pouty” when he’s there