John McGrath, founder of McGrath Estate Agents recently released the McGrath Report 2018.

This features Mr McGrath analysing the Australian residential property market.  

In the report, Mr McGrath notes that over the past 20 years, Wollongong, Newcastle, Geelong, Ballarat and Toowoomba are among the most important key regional markets to have transformed themselves from old industry satellite towns into attractive regional cities.

Read more: Wollongong revealed as Australia’s third most expensive city

Mr McGrath said new transport and roads infrastructure has brought these regional cities closer to the capitals.

He said this has enabled locals to commute and earn a big city income while enjoying a small city lifestyle that includes far more affordable housing.

“Telecommuting is also enabling more people to base themselves in lifestyle locations,” he said. 

“As house prices in major cities like Sydney and Melbourne become more expensive and industry seeks cheaper bases of operation – bringing hundreds of jobs with them, many Australians are embracing smaller cities as a great place to live and work. 

READ MORE: Illawarra's unit price growth sets new record

“Most of these small cities are formerly regional industrial hubs close to our capitals that have transformed into attractive lifestyle centres offering more affordable housing, employment opportunities, a strong sense of community and a more relaxed way of life.

“Wollongong was once a blue-collar industrial town, but today it is a coastal lifestyle centre known for its pristine beaches, leading university and arguably the most appealing commuter housing market for families priced out of Sydney.”

According to the report, the median house price in Wollongong is $720,000, up 15.2 per cent over the 12 months ending June 2017.

“Price growth is being largely driven by Sydney families, local upgraders and a move to encourage immigration outside capital cities through the government’s Regional Sponsored Migration Scheme,” the report says.