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Wollongong's property market has experienced significant growth, with median house prices reaching $1.26 million as of June 2025.
The coastal city offers diverse property options from affordable units starting around $690,000 to luxury beachfront homes exceeding $2.5 million. With suburbs like Dapto showing strong growth potential and premium areas like Coledale commanding over $2 million, understanding the current market dynamics is crucial for both investors and homebuyers looking to enter this competitive market.
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Wollongong's median house price stands at $1.26 million, with apartments at $690,000 and townhouses ranging from $800,000 to $1.2 million.
The market has grown 53% over five years and 6.4% in the past 12 months, with forecasts suggesting continued moderate growth of 3-7% annually.
| Property Type | Median Price (June 2025) | Recent Growth (12 months) |
|---|---|---|
| Detached Houses | $1.26 million | 6.4% |
| Apartments/Units | $690,000 | Variable by suburb |
| Townhouses | $800,000 - $1.2 million | 5-8% in growth areas |
| Luxury Properties | $2.5+ million | Premium market stable |
| Most Expensive (Coledale) | $2.07+ million | Steady premium demand |
| Most Affordable (Dapto) | $795,000 | Fastest growth area |
What are the current average house prices in Wollongong by property type?
As of June 2025, Wollongong's property market shows distinct pricing across different property types.
Detached houses command the highest prices with a median of $1.26 million, reflecting the strong demand for family homes in this coastal city. Apartments and units offer a more accessible entry point at around $690,000 median price, making them popular among first-time buyers and investors. Townhouses sit in the middle range, typically selling between $800,000 and $1.2 million depending on size, location, and amenities.
The luxury market operates at a different level entirely, with beachfront properties and penthouses easily exceeding $2.5 million. These premium properties are concentrated in sought-after coastal suburbs and offer exceptional lifestyle amenities. The diversity in pricing reflects Wollongong's varied geography, from industrial areas to premium beachfront locations.
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Which suburbs are the most expensive, affordable, and up-and-coming in Wollongong?
Wollongong's suburb pricing reveals clear geographical and lifestyle patterns across the region.
| Category | Suburb | Median House Price |
|---|---|---|
| Most Expensive | Coledale | $2.07+ million |
| Most Expensive | Thirroul | $1.8 million |
| Most Expensive | Kiama | $1.5 million |
| Most Affordable | Dapto | $795,000 |
| Most Affordable | Warrawong | Under $800,000 |
| Most Affordable | Lake Illawarra | Under $800,000 |
| Up-and-Coming | Fairy Meadow | 7.78% growth (12 months) |
| Up-and-Coming | Wongawilli | 5%+ recent growth |
| Up-and-Coming | Koonawarra | 5%+ recent growth |
How have property prices changed in Wollongong over the past 5 years and 12 months?
Wollongong has experienced substantial property price growth, particularly accelerating during the post-2020 period.
Over the past five years, house prices have surged by an impressive 53%, representing one of the strongest growth periods in the city's recent history. This dramatic increase reflects broader Australian property market trends, low interest rates during the pandemic period, and increased demand for regional lifestyle locations. The growth has significantly outpaced wage increases, creating affordability challenges for many potential buyers.
In the most recent 12-month period ending June 2025, the market has shown more moderate but still solid growth of 6.4% for houses. This represents a cooling from the peak growth years but maintains positive momentum. However, the unit market has shown more mixed results, with some suburbs like Fairy Meadow experiencing minor declines of 3.2% for apartments, indicating a more nuanced market dynamic across property types.
The growth pattern suggests the market is transitioning from the exceptional pandemic-era gains to a more sustainable long-term trajectory.
What are the price forecasts for Wollongong real estate over the next 1, 5, and 10 years?
Property price forecasts for Wollongong suggest continued growth at more moderate rates than the exceptional gains of recent years.
For 2026, analysts predict growth between 3% and 7%, reflecting a normalization from the rapid increases of previous years. This forecast accounts for higher interest rates, affordability constraints, and a more balanced supply-demand dynamic. The range acknowledges uncertainty around economic conditions and potential policy changes affecting the property market.
Looking ahead five years to 2030, cumulative price increases of 15% to 30% appear realistic if current trends continue. This projection assumes steady economic growth, population increases, and continued appeal of Wollongong as a lifestyle destination. However, affordability pressures may begin to moderate demand, particularly for first-time buyers.
The 10-year outlook to 2035 historically suggests potential increases of 50% to 100%, based on past patterns where prices have roughly doubled each decade. However, experts expect this historical trend to moderate due to affordability constraints and changing demographic patterns. Sustainable growth rates may settle closer to the lower end of this range.
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How does Wollongong compare with other similar Australian cities in terms of house prices?
Wollongong stands out as notably more expensive than other comparable regional Australian cities, reflecting its proximity to Sydney and coastal lifestyle appeal.
At $1.26 million median house price, Wollongong commands a significant premium over Newcastle ($950,000), Geelong ($900,000), and Hobart ($670,000). This pricing differential of $300,000 to $600,000 above these comparable cities reflects several key factors. Wollongong's position within the Sydney metropolitan area provides employment opportunities and connectivity that other regional cities lack.
The premium also reflects Wollongong's superior coastal amenities, with extensive beaches and recreational facilities that enhance lifestyle appeal. Unlike inland regional centers, Wollongong offers both urban amenities and natural beauty, justifying higher prices for many buyers. However, this pricing advantage also presents affordability challenges and may limit future growth potential compared to these more affordable alternatives.
What's the typical price per square meter for properties in different parts of Wollongong?
Price per square meter varies significantly across Wollongong depending on property type and location, reflecting the diverse nature of the market.
Central and beachfront apartments command the highest rates at $10,000 to $15,000 per square meter, reflecting prime location premiums and lifestyle appeal. These properties offer immediate beach access, urban conveniences, and often superior building amenities. Townhouses typically range from $7,000 to $10,000 per square meter, positioned between apartments and detached houses in terms of value and space efficiency.
Detached houses show the most variation, typically ranging from $6,000 to $10,000 per square meter in popular suburbs. Premium suburbs like Thirroul and Coledale command the higher end of this range, while more affordable areas like Dapto offer better value per square meter. The variation reflects land values, proximity to amenities, and suburb desirability factors that influence overall property pricing.
What are some recent example purchase prices across different price ranges in Wollongong?
Recent sales data provides concrete examples of current market pricing across Wollongong's diverse property landscape.
| Property Type | Location | Sale Price |
|---|---|---|
| 2-bed, 2-bath Apartment | Central Wollongong | $700,000 - $800,000 |
| 3-bed Townhouse | Towradgi | $900,000 |
| 4-bed Townhouse | Keiraville | $1.1 million |
| 3-bed House | Kanahooka | $850,000 |
| 6-bed House | Mount Ousley | $2.5+ million |
| Beachfront Home | Coledale/Thirroul | $2-3+ million |
What additional costs should I expect beyond the purchase price?
Property purchases in Wollongong involve several additional costs that buyers must factor into their budget planning.
Stamp duty represents the largest additional cost, calculated at $49,069 plus $5.50 per $100 over $1,212,000 for properties above this threshold. For an $850,000 home, buyers can expect approximately $32,839 in stamp duty. Legal and conveyancing fees typically range from $700 to $1,300, depending on the complexity of the transaction and legal firm chosen.
Agent fees in regional NSW typically range from 2.5% to 3.5% of the sale price, though this cost is usually borne by the seller. Building and pest inspections are essential and cost between $400 and $800, representing valuable protection for buyers. Additional costs including mortgage discharge fees, marketing contributions, and potential staging can add another $2,000 to $10,000 to the total transaction cost.
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What are the current mortgage rates and typical monthly repayments in Wollongong?
As of June 2025, Australian mortgage rates remain at elevated levels compared to the historic lows of recent years.
The average variable mortgage rate stands at 6.79%, while fixed rates average 6.04%, reflecting the Reserve Bank's monetary policy stance. These rates significantly impact affordability calculations for potential buyers. The average new home loan amount has reached $659,922 nationally, resulting in monthly repayments of approximately $3,957 over a 30-year term at current rates.
In NSW specifically, average monthly repayments have increased to $4,765, reflecting higher property prices and interest rates. For a typical Wollongong property purchase at the median house price of $1.26 million with a 20% deposit, monthly repayments would approach $6,000-$7,000, highlighting the affordability challenges facing many buyers. These figures demonstrate why careful financial planning and deposit accumulation are crucial for successful property purchases.
What are the smartest buying options for owner-occupiers in Wollongong right now?
Owner-occupiers should focus on suburbs offering the best combination of lifestyle, value, and future growth potential.
Family buyers should consider suburbs like Dapto, Fairy Meadow, and Wongawilli, which offer good value relative to premium areas while providing new estates, family amenities, and strong growth prospects. These areas combine affordability with quality infrastructure and are experiencing positive development momentum. Dapto particularly stands out with new residential estates and improving connectivity to both Wollongong and Sydney.
Lifestyle-focused buyers willing to pay premium prices should consider Thirroul, Coledale, and Kiama for exceptional beachside living. These suburbs offer established communities, superior amenities, and proven capital growth, though entry prices are significantly higher. First-time buyers might find better opportunities in units or townhouses in suburbs like Warrawong or Lake Illawarra, where entry prices remain more accessible while still offering growth potential.
What are the pros and cons of different investment strategies in Wollongong?
Investment strategies in Wollongong each offer distinct advantages and challenges depending on investor goals and risk tolerance.
Short-term rental (Airbnb) strategies work best in tourist-favored areas like Kiama and Thirroul, potentially generating higher yields than traditional rentals. However, these investments require active management, face higher vacancy risks during off-peak periods, and may encounter council restrictions or strata limitations. The coastal appeal and proximity to Sydney create strong tourism demand but seasonal fluctuations affect income stability.
Long-term rental strategies offer more predictable income streams with lower management requirements and easier financing arrangements. The average rental yield of 3.3% reflects the high entry prices but provides steady returns. However, these yields are relatively low compared to many other Australian markets, making capital growth crucial for overall returns.
Buy-and-hold strategies for capital growth benefit from Wollongong's proven long-term appreciation and lifestyle appeal. However, high entry prices and potential for moderate future growth rates require careful suburb selection and long-term commitment. Transaction costs also make short-term speculation less attractive than in previous market cycles.
Which Wollongong suburbs offer the best long-term investment opportunities?
Several Wollongong suburbs stand out for their long-term investment potential based on growth trends, infrastructure development, and market fundamentals.
Dapto leads the investment opportunity list with strong recent growth, new infrastructure development, and relatively affordable entry prices. The suburb benefits from new residential estates, improving transport links, and demographic growth that supports sustained demand. Its position as the fastest-growing area combined with infrastructure investment creates compelling long-term prospects.
Fairy Meadow offers high recent growth of 7.78%, proximity to the university, and established infrastructure connecting to both the city center and beaches. North Wollongong provides consistent demand for units due to its proximity to the CBD and beaches, making it suitable for rental investment strategies. Kiama represents the premium end with strong tourism appeal, limited supply, and long-term capital growth potential, though requiring higher initial investment.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Wollongong's property market presents both opportunities and challenges as we reach mid-2025, with strong historical growth now transitioning to more moderate but sustainable increases.
Success in this market requires careful suburb selection, understanding of local dynamics, and realistic expectations about future growth rates in an increasingly competitive and expensive environment.
Sources
- Ready Set Buy - Wollongong Real Estate Market Update 2025
- RealEstate.com.au - Wollongong Property Market
- Ray White Wollongong - Sold Properties
- BambooRoutes - Wollongong Price Forecasts
- View.com.au - Illawarra Expensive and Affordable Suburbs
- Illawarra Buyers Agent - Best Investment Suburbs 2025
- OpenAgent - Best Investment Areas Wollongong
- InvestorKit - Wollongong Market Analysis
- Finder - Average Home Loan Interest Rates
- Unconditional Finance - NSW Stamp Duty Guide