The NSW South Coast home, located north of Broulee, sits on a prime street on the banks of the Tomakin River.

Believed to have been built in the late 1970s to early 1980s, 201 Annetts Parade, Mossy Point, was listed for sale in December and scheduled for auction this month.

However a local buyer put in a pre-auction offer to secure the home, setting a new suburb record in the process.

The previous record of $3.26 million was set in November 2021 with the sale of a four-bedroom home on the same street.

Selling agent Melissa Williams of Ray White Broulee said while the home was in need of an update in some areas, it was in a good, tidy condition.

"It's a very good house as in it has great bone structure," she said.

Among the home's biggest features is an open-plan dining and lounge area, three generous bedrooms as well as a downstairs rumpus room with an adjoining bathroom.

However, it was the property's location and outlook over the water, plus a personal connection with the home, that captured the eventual buyer.

"It's just a very beautiful and easy lifestyle," Ms Williams said.

The median sales price of houses in the area is $950,000, according to CoreLogic. The five highest sale prices for Mossy Point are all held by homes on Annetts Parade.

Ms Williams said the record sale is a milestone for the South Coast suburb, which was heavily impacted by the 2020 bushfires.

"The area was struggling a little bit after the fires and then suddenly it went crazy [with property sales]," she said.

"These are Canberra prices that we are getting ... it's showing just how much this area is developing and changing."

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The sale may be a sign of what's to come for Mossy Point in 2022, with Ms Williams predicting prices in the area will "creep right up".

"Last year, $2 million was norm. This year, $3 million is starting to look like it might be the new norm for high-end property," she said.

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