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Wollongong's rental market has experienced significant tightening with average weekly rents reaching $700 for houses and $621 for units as of August 2025.
The Illawarra region has seen extremely low vacancy rates below 1%, creating a competitive environment for tenants while offering strong opportunities for property investors seeking steady rental income.
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As of September 2025, Wollongong's rental market shows strong demand with houses averaging $700 per week and units at $621 per week.
Rental yields average 3.3% across the market, with some units achieving 4.5-5% returns, while vacancy rates remain critically low at under 1%.
| Property Type | Average Weekly Rent | Typical Yield |
|---|---|---|
| Studio/1-Bedroom | $400-$450 | 4.0-4.5% |
| 2-Bedroom Unit | $550-$650 | 4.5-5.0% |
| 3-Bedroom House | $650-$820 | 3.2-3.8% |
| 4+ Bedroom House | $900-$1,600 | 3.0-3.5% |
| Luxury Properties | $1,000-$1,600 | 2.8-3.2% |
| CBD Properties | $680-$700 | 3.5-4.0% |
| Outer Suburbs | $400-$500 | 4.0-4.8% |
What's the average rent right now in Wollongong for each type of property?
As of September 2025, Wollongong's rental market shows distinct pricing tiers across different property types.
Houses command an average of $700 per week across all sizes, with three-bedroom houses specifically averaging $650 per week. Units average $621 per week, while two-bedroom units sit at $586 per week.
Studios and one-bedroom apartments range from $400 to $450 per week, making them the most affordable option for single tenants or couples. Two-bedroom units typically rent between $550 and $650 per week, while three-bedroom houses span $650 to $820 per week.
Luxury properties represent the premium segment, fetching between $1,000 and $1,600 per week depending on size, finish quality, and suburb location. These high-end rentals often feature modern amenities, premium locations, or waterfront access.
The rental market reflects strong demand across all property types, with limited supply keeping prices elevated compared to other regional Australian cities.
How does the rent vary depending on the neighborhood or suburb in Wollongong?
Wollongong's rental prices vary significantly based on suburb location and proximity to amenities.
The Wollongong CBD commands median rents of $680 to $700 per week, reflecting its prime location with access to employment, dining, and transport options. North Wollongong maintains similar pricing at approximately $675 per week median rent.
Premium suburbs like Balgownie, Corrimal, and Kanahooka show a wide range from $680 to $1,450 per week, with the higher end representing luxury homes or waterfront properties. Port Kembla falls within this same range due to its coastal location and industrial employment opportunities.
More affordable options exist in suburbs like Cringila and Warrawong, where basic properties can rent for as low as $400 to $500 per week. These areas offer budget-conscious tenants access to the broader Wollongong region while maintaining lower rental costs.
The suburb choice significantly impacts rental costs, with beachside and CBD locations commanding premiums of 30-40% over outer suburban areas.
What are the typical rental prices when broken down by property size and surface area?
Wollongong's rental pricing follows a clear progression based on property size and bedroom count.
| Property Size | Weekly Rent Range | Typical Features |
|---|---|---|
| Studio | $400-$430 | 30-40sqm, basic amenities |
| 1-Bedroom | $430-$450 | 50-70sqm, separate bedroom |
| 2-Bedroom Unit | $550-$650 | 80-100sqm, bathroom, parking |
| 3-Bedroom House | $650-$820 | 120-180sqm, yard, garage |
| 4-Bedroom House | $900-$1,200 | 180-250sqm, multiple living areas |
| 5+ Bedroom Luxury | $1,200-$1,600 | 250sqm+, premium finishes |
| Townhouse | $600-$900 | 120-160sqm, private courtyard |
What would be a concrete example of rent for different types of properties?
Current rental listings in Wollongong provide specific examples of what tenants can expect to pay across different property categories.
A one-bedroom apartment in the CBD or near the university typically rents between $400 and $645 per week. Recent listings show modern one-bedroom units with parking and balcony access at the higher end of this range.
Three-bedroom houses across various Wollongong suburbs range from $649 to $820 per week. A typical three-bedroom brick home with garage and backyard in suburbs like Fairy Meadow or Mount Ousley falls within this bracket.
Luxury properties showcase the premium market segment, with high-end units or large houses commanding $1,000 to $1,600 per week. Examples include waterfront apartments in the CBD with harbour views or four-bedroom executive homes in prestige suburbs like Balgownie with modern amenities and premium finishes.
These concrete examples reflect the current market as of September 2025, with prices influenced by property condition, location proximity to beaches or CBD, and available amenities like parking and outdoor space.
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When calculating total rental cost, what do owners need to factor in beyond the rent itself?
Property owners must account for substantial additional costs beyond the weekly rental income when calculating true investment returns.
Council rates represent a significant annual expense, typically ranging from $1,200 to $2,500 per year depending on property size and suburb location. These rates fund local services and infrastructure maintenance.
Strata or body corporate fees apply to unit owners, averaging $2,000 to $5,000 annually depending on building amenities and management requirements. These fees cover common area maintenance, insurance, and building management.
Maintenance costs vary significantly based on property age and condition, typically requiring $1,500 to $5,000 annually for routine repairs, gardening, and upkeep. Older properties or those with pools and extensive gardens require higher maintenance budgets.
Additional expenses include property management fees at 7-9% of annual rent, landlord insurance costing $500 to $1,500 yearly, and potential land tax obligations if property holdings exceed state thresholds. Periodic refurbishment and compliance costs for smoke alarms and safety certificates add further expenses.
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How does the mortgage payment compare with the rental income on average in Wollongong?
Mortgage repayments in Wollongong significantly exceed rental income for most property types, creating negative gearing scenarios for investors.
With median house prices around $1,055,000 and unit prices between $700,000 and $760,000 as of September 2025, mortgage repayments substantially outweigh rental returns. A $1 million mortgage at 6% interest over 30 years requires approximately $1,320 per week in repayments.
This mortgage payment far exceeds the average house rental income of $700 per week, creating a weekly shortfall of $620 that investors must fund from other income sources. Unit investments show a smaller but still significant gap, with mortgage repayments around $875 to $900 per week against rental income of $621 per week.
The negative gearing scenario means investors rely on capital growth rather than rental income for investment returns. Current interest rates and property prices make cash-flow positive investments rare in the Wollongong market.
Investors must carefully budget for these ongoing costs while factoring in potential tax benefits from negative gearing arrangements under Australian taxation law.
What do the rental yields look like right now, and how do they differ by property type and area?
Wollongong's rental yields average 3.3% across the market as of September 2025, positioning it slightly above Sydney's 3.0% but below many other regional Australian cities.
Units consistently deliver higher yields than houses, with some unit complexes achieving 4.5% to 5% returns. A typical example shows a two-bedroom unit with $680 weekly rent and $740,000 purchase price delivering approximately 4.8% yield.
Houses generally provide lower yields due to higher purchase prices relative to rental income. Large houses demonstrate this clearly, with a property achieving $1,300 weekly rent but requiring a $2.05 million purchase price, resulting in only 3.2% yield.
Geographic variations show outer suburbs and unit-heavy areas typically offering better yields than premium house markets. CBD units can achieve 3.5% to 4% yields, while luxury house markets in prestige suburbs often deliver yields below 3%.
The yield differential between property types reflects the market's pricing structure, where unit affordability maintains stronger rental demand relative to purchase prices compared to the premium house segment.
How have both rents and yields changed compared to five years ago, and compared to just one year ago?
Wollongong's rental market has strengthened steadily over the past five years, with yields improving from approximately 3.2% to the current 3.3% average.
Rental growth has outpaced property price increases during this period, particularly benefiting unit investors who have seen some properties achieve yields reaching 4.5% to 5%. This improvement reflects sustained rental demand combined with more moderate capital growth compared to Sydney's rapid price increases.
The most significant changes have occurred in the unit market, where rental demand from students, young professionals, and Sydney migrants has driven rental growth while purchase prices remained relatively stable. Houses have experienced more balanced growth between rents and prices.
Year-on-year changes show continued rental strengthening with modest yield improvements as the market benefits from extremely low vacancy rates below 1%. The tight rental market has enabled landlords to achieve consistent rental increases while property prices have shown more moderate growth.
This trend reflects Wollongong's position as an affordable alternative to Sydney, attracting both renters and investors seeking better returns than metro markets while maintaining growth potential.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's the forecast for rents and yields in Wollongong for the next one year, five years, and ten years?
Wollongong's rental market outlook shows modest but steady growth across all timeframes, supported by continued migration from Sydney and regional development.
Next year's forecast predicts rental growth of 2% to 4%, with yields remaining steady or showing slight improvement as property prices stabilize and potential interest rate reductions reduce investor costs. The tight vacancy market supports continued rental strengthening.
Five-year projections suggest steady demand will enable rents to track inflation while yields likely remain flat unless price growth accelerates significantly. Population growth and economic development in the Illawarra region support sustained rental demand across all property types.
Ten-year forecasts indicate gradual rental increases as long as population and economic drivers remain stable. The region's strategic location between Sydney and the Southern Highlands, combined with ongoing infrastructure development, supports long-term rental growth potential.
Yield forecasts depend heavily on capital growth rates, with moderate price increases potentially maintaining current yield levels while rapid price growth could compress yields despite rental increases.
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What do the vacancy rates look like across different areas and property types, and how do they affect investment potential?
Wollongong's vacancy rates remain critically low at under 1% across most areas, indicating extremely tight rental supply and strong investment fundamentals.
Most suburbs maintain vacancy rates between 0.8% and 1.2%, demonstrating sustained demand that significantly exceeds available rental stock. Premium suburbs often show even lower vacancy rates due to limited luxury rental supply.
These exceptionally low vacancy rates create several investment advantages: minimal rental income loss from vacant periods, strong tenant retention, and landlord pricing power for rental increases. Properties typically rent quickly with multiple applications common.
The tight market particularly benefits unit investors, where high demand from students, young professionals, and downsizers maintains consistent occupancy. House investors also benefit from family demand and limited alternative housing options.
Investment potential remains strong due to these vacancy fundamentals, though investors should prepare for potential future supply increases as development responds to current demand pressures. The low vacancy environment supports confident investment decisions across all property types and suburbs.
Who are the typical renter profiles in Wollongong—students, young professionals, families—and how does that shape demand?
Wollongong's diverse renter base creates varied demand patterns across different property types and locations throughout the year.
University students form a significant renter segment, particularly demanding one-bedroom apartments and studios near campus areas. Student demand peaks in February and July corresponding to semester starts, creating seasonal rental patterns for smaller properties.
Young professionals represent a growing segment seeking one to two-bedroom apartments in the CBD and areas with good transport connections to Sydney. This group drives demand for modern units with amenities like parking, gyms, and proximity to dining and entertainment.
Families constitute the primary demand for three-bedroom houses in suburbs like Balgownie, Corrimal, and Kanahooka. These renters prioritize school zones, yard space, and suburban amenities while seeking longer-term rental arrangements.
Retirees and downsizers increasingly seek luxury units or accessible properties, often driving demand for premium rental stock with modern amenities and low-maintenance living options.
Sydney migration pressure adds demand across all categories as residents seek affordable alternatives while maintaining access to Sydney employment through improved transport links.
What are the smartest choices right now for an investor, including whether to focus on short-term rentals or long-term leases, and how does Wollongong compare with similar cities?
Long-term leases represent the most stable investment strategy for normal units and houses in Wollongong's current market conditions.
Short-term rentals through platforms like Airbnb can generate higher returns for luxury units and well-positioned properties, but face increasing regulatory scrutiny and seasonal demand variations. The tourism market supports short-term rentals in beachside and CBD locations during peak periods.
Best investment suburbs currently include Lake Illawarra and Kiama for strong growth potential, while CBD and premium neighborhoods attract tenants willing to pay premium rents. Unit investments in growth suburbs offer the optimal balance of yield and capital growth potential.
Compared to similar regional cities, Wollongong delivers lower yields than Newcastle or Gold Coast but stronger growth prospects than Sydney due to affordability and continued migration. The city's strategic location provides better long-term fundamentals than purely tourist-dependent markets.
Smart investor choices focus on units in established areas with transport links, or houses in family-friendly suburbs with school access. The extremely low vacancy rates support confident investment across most property types and locations.
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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 rental market in September 2025 presents a compelling investment environment with extremely low vacancy rates and steady rental growth, though yields remain moderate compared to other regional markets.
Investors should focus on units for better yields and houses for capital growth, while considering the negative gearing reality that makes cash-flow positive investments rare in the current interest rate environment.
Sources
- SQM Research - Wollongong Weekly Rents
- Elders Real Estate - Wollongong Rentals
- Domain - Wollongong Rental Properties
- RealEstate.com.au - Wollongong Market Data
- Wollongong City Council - Revenue Policy
- Your Mortgage - Renting vs Buying 2025
- Propertyology - 2025 Market Outlook
- InvestorKit - Wollongong Market Review