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Hunt for gunman after man shot dead in NSW

A man has died in a targeted shooting outside a Wollongong home, with neighbours describing how the quiet street was awakened by the sounds of four gunshots.

Nathan Costello, who was believed to be in his 30s and known to police, was found with a gunshot wound on a nature strip outside a Unanderra home at 2.15am Wednesday.

Police officers conducted CPR on Mr Costello until NSW Ambulance paramedics arrived but he died at the scene.

A manhunt for the gunman is under way while police also search for a motive for the targeted attack.

A blue vehicle with two bullet holes found outside the Carr Parade house was also forming part of police investigations.

"We believe that this is a targeted shooting," Detective Inspector Glen Broadhead told reporters in Wollongong on Wednesday.

"We don't know what the motive is but there are a number of inquiries which we will make, so at this point we are not ruling anything out."

A neighbour, who only wanted to be known as Pete, told Fairfax Media he was falling asleep when he heard four gunshots.

"Bang, bang, bang, bang - and then the car went, that's all I heard," he said.

"Twenty minutes later there were police everywhere."

Another neighbour, who wished to remain anonymous, described the area as a "relatively quiet".

Police interviewed several witnesses and will investigate if there are any links to a burnt-out car found nearby shortly after the shooting, Det Insp Broadhead said.

The type of firearm used by the attacker had not been determined, but investigators believed the shooting happened from the street.

A strike force was set up to investigate the death.

© AAP 2018

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