What's the property market outlook in Wollongong?

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Wollongong's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Wollongong. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Wollongong, Sydney, and Newcastle. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current median house price in Wollongong, and how has it changed over the past 12 months?

As of September 2025, the median house price in Wollongong sits between $1,260,000 and $1,270,000.

This represents a solid 6% increase over the past 12 months, demonstrating the market's continued strength despite broader economic pressures. The Wollongong residential market has shown remarkable resilience, with consistent buyer demand supporting steady price appreciation throughout 2025.

When you compare this growth to longer-term trends, the picture becomes even more striking. Over the past five years, Wollongong house prices have surged by 53%, while the ten-year growth reaches an impressive 118%. This long-term performance significantly outpaces many regional markets and even rivals some metropolitan areas.

The current price point positions Wollongong as a premium coastal market, yet it remains more accessible than Sydney's median house prices, which typically exceed $1.4 million in comparable areas.

It's something we develop in our Australia property pack.

How do unit prices compare to house prices, and are they rising or falling at a different pace?

Units in Wollongong are significantly outperforming houses in terms of price growth as of September 2025.

The median unit price currently ranges from $690,000 to $750,000, with some premium units reaching $756,000. More importantly, units have experienced 7.4% price growth over the past 12 months, compared to houses at 6% growth.

This performance gap reflects several market dynamics at play in the Wollongong property market. Units offer a more affordable entry point for both owner-occupiers and investors, creating stronger competition and driving faster price appreciation. The lower maintenance requirements and often superior locations near amenities also make units particularly attractive to downsizers and interstate buyers.

The unit market's outperformance also signals shifting buyer preferences toward more manageable property types. With interest rates remaining elevated and affordability constraints increasing, many buyers are gravitating toward units as a way to enter the Wollongong market without the higher capital requirements of houses.

This trend is likely to continue as new apartment developments come online and buyer preferences evolve toward convenience and lifestyle amenities.

What's the current rental yield for houses and units in Wollongong, and how does it stack up against nearby areas like Sydney and Newcastle?

Wollongong's rental yields present a compelling case for investors, particularly in the unit segment.

Location	House Yield	Unit Yield	Market Advantage
Wollongong	~3.3%	~4.2% (up to 4.6%)	Strong unit performance
Sydney Metro	~2.7%	~4.1-4.6%	Lower house yields
Newcastle	~3.1%	~3.8-4.4%	Slightly lower overall
Regional NSW Average	~3.5%	~4.2%	Wollongong competitive
National Average	~3.2%	~4.1%	Above average returns

How high is the current rental vacancy rate, and what does that signal about tenant demand?

Wollongong's rental vacancy rate sits at under 1% as of September 2025, indicating severe rental shortages across all property types.

This exceptionally tight rental market signals extremely strong tenant demand that far outstrips available supply. With vacancy rates well below the 2-3% range considered balanced, tenants face intense competition for available properties, often leading to rental bidding wars and rapid lease agreements.

The low vacancy rate also reflects broader migration patterns, with Sydney residents continuing to relocate to Wollongong for lifestyle and affordability reasons. University students, young professionals, and families are all competing for the limited rental stock, creating sustained upward pressure on rents.

Compared to nearby markets, Wollongong's rental conditions are tighter than Newcastle (1.1% vacancy) and Sydney (1.5% vacancy), making it one of the most landlord-favorable rental markets in NSW. This translates to reliable rental income, minimal void periods, and strong potential for rent increases.

For investors, these conditions represent ideal circumstances with high occupancy rates and growing rental returns expected to continue through 2025 and beyond.

What major infrastructure projects are planned or underway in Wollongong that could impact property values?

Wollongong has over $820 million in infrastructure spending planned through 2029, creating substantial long-term value drivers for the property market.

The major projects transforming the city include the $500 million WIN Grand Development featuring 578 apartments, hotel facilities, and commercial offices. The Globe development represents another $229 million mixed-use project that will reshape the city center with retail, residential, and office spaces.

Healthcare infrastructure is expanding significantly with hospital upgrades and new medical facilities planned across the region. Transport improvements include road upgrades, intersection improvements, and enhanced connectivity to Sydney, reducing travel times for commuters.

The green energy sector is receiving major investment with hydrogen production facilities and renewable energy projects creating new employment opportunities. These developments position Wollongong as a future energy hub, likely attracting skilled workers and driving housing demand.

Educational infrastructure includes university expansions and new research facilities, supporting the knowledge economy and creating ongoing demand for student and professional accommodation. These combined infrastructure investments should support property values across all segments over the next 5-10 years.

How have interest rate changes affected buyer activity and borrowing capacity in Wollongong specifically?

Interest rates at 4.10% have constrained borrowing capacity but haven't derailed buyer activity in the Wollongong property market.

Higher interest rates have reduced maximum loan amounts for many buyers, with a typical borrower now qualifying for approximately 15-20% less than at the peak lending period in 2021. However, Wollongong's relative affordability compared to Sydney continues attracting buyers who might otherwise be priced out of metropolitan markets.

The impact varies significantly across buyer segments. First-home buyers are leveraging government grants and shared equity schemes to maintain purchasing power, while investors are increasingly focused on yield-generating properties to offset higher borrowing costs.

Cash buyers and those with substantial equity have gained competitive advantages, often securing properties in multiple-offer situations. The reduced borrowing capacity has also shifted buyer preferences toward units and smaller properties, explaining the strong unit market performance.

Despite lending constraints, buyer enquiry remains robust, particularly for well-positioned properties near amenities, transport, and employment hubs. The market has adapted to higher rates rather than collapsed, suggesting underlying demand fundamentals remain strong.

What are auction clearance rates and average days on market telling us about buyer demand right now?

As of August 2025, Wollongong's auction clearance rate sits at approximately 58.5%, with houses and units showing similar clearance performance.

This clearance rate indicates moderate buyer demand, with more than half of auctioned properties finding buyers. While not as strong as peak market conditions, it represents healthy competition among buyers and suggests pricing remains realistic relative to buyer capacity.

Average days on market for houses remains stable at around 33 days, indicating properties are selling at a reasonable pace without extended marketing periods. This timeframe suggests sellers don't need to significantly discount properties to attract buyers, supporting current pricing levels.

Private treaty sales continue to be the preferred method for many sellers, offering more controlled negotiation environments. The combination of moderate auction clearance and stable days on market suggests a balanced market where motivated buyers and sellers can still transact effectively.

These metrics indicate buyer demand remains present but more selective, with purchasers taking time to evaluate options rather than rushing into purchases. This measured approach suggests the market is functioning normally despite broader economic pressures.

How many new housing developments or unit projects are in the pipeline, and how could that affect supply and prices?

Wollongong faces a significant supply surge with over 840 new apartments expected to complete in 2026, representing a major increase in annual unit supply.

This development pipeline includes several major projects that will substantially increase housing stock. The WIN Grand Development alone will add 578 apartments, while numerous smaller projects across the city will contribute additional units. The first affordable housing project outside Greater Sydney will deliver 145 apartments, including 25 affordable units.

The supply increase poses both opportunities and risks for the Wollongong property market. Additional stock should help address the current rental shortage, potentially stabilizing rent growth and providing more options for buyers. However, the concentrated delivery of unit stock may soften unit price growth if tenant demand fails to keep pace with new supply.

NSW government planning reforms are encouraging more medium-density development near transport nodes, likely increasing future supply beyond current pipelines. This policy shift toward duplexes, terraces, and low-rise apartments near train stations should provide ongoing supply relief.

For investors, the timing of purchases becomes crucial. Buying before the major supply hits the market may capture current growth, while purchasing after completion might offer more selection but potentially softer capital growth prospects.

It's something we develop in our Australia property pack.

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 population growth looking like in Wollongong, and how does it connect to housing demand?

Wollongong's population reached 319,000 in 2025, growing by 1.27% year-on-year, which translates to approximately 5,000 new residents annually.

This steady population growth is driven by multiple factors creating sustained housing demand. Sydney out-migration continues as residents seek more affordable living options while maintaining access to employment and amenities. International arrivals, including skilled migrants and students, add to population pressures.

The university, technology, and health sectors are attracting skilled professionals who require quality housing options. The expansion of research facilities and green energy projects is expected to draw additional skilled workers over coming years.

Geographic growth patterns show western suburbs and city-centre apartment precincts expanding most rapidly. This concentrated growth is driving demand for both rental and purchase properties in these areas, supporting price growth and development activity.

At current growth rates, Wollongong adds housing demand for approximately 2,000-2,500 additional dwellings annually. With new supply of 840+ apartments expected in 2026, the market appears to be balancing supply and demand reasonably well, though tight rental conditions may persist.

How are first-home buyers, investors, and downsizers behaving differently in the current market?

Each buyer segment is adapting differently to current Wollongong market conditions, creating distinct demand patterns.

1. **First-home buyers** are concentrating activity in outer and emerging suburbs where prices remain more accessible, leveraging government grants up to $10,000, stamp duty exemptions, and shared equity schemes to maximize purchasing power.2. **Investors** are increasingly focused on unit purchases in yield-generating suburbs, attracted by rental returns exceeding 4% and low vacancy rates, though remaining cautious about the upcoming supply pipeline and potential oversupply risks.3. **Downsizers** are driving premium demand for new apartments and coastal lifestyle properties, particularly targeting central locations with easy access to amenities, healthcare, and transport links.4. **Interstate buyers** continue relocating from Sydney and Melbourne, seeking lifestyle improvements and housing affordability, often purchasing sight-unseen based on local agent recommendations.5. **Cash buyers** are gaining significant competitive advantages in multiple-offer situations, able to act quickly and secure properties without financing contingencies.

What government policies, incentives, or restrictions are directly influencing the Wollongong market at the moment?

Several government policies are actively shaping the Wollongong property market in 2025.

NSW planning reforms promote increased medium-density development near train stations and town centres, encouraging duplexes, terraces, and low-rise apartments. These changes should boost supply and provide more diverse housing options over the medium term.

First-home buyer support includes grants up to $10,000, stamp duty exemptions on properties under certain thresholds, and shared equity schemes that help buyers enter the market with smaller deposits. These programs are particularly active in Wollongong's more affordable suburbs.

The state government's commitment to affordable housing delivery includes the first major affordable housing project outside Greater Sydney, with 25 affordable units among 145 total apartments. This signals ongoing policy support for housing diversity.

Infrastructure spending commitments through the NSW budget are delivering over $820 million in local projects, supporting long-term property values through improved amenities and economic development. Interest rate policy from the Reserve Bank continues affecting borrowing capacity, though local demand remains resilient.

Foreign investment restrictions continue applying to new developments, while existing properties face additional taxes for overseas buyers, potentially supporting local buyer activity.

What are the main risks and opportunities for buyers and investors over the next 12–24 months in Wollongong?

The Wollongong property market presents both compelling opportunities and notable risks over the next two years.

**Opportunities:**- **Yield advantage**: Wollongong units offer substantially better rental yields than Sydney equivalents, with continued strong tenant demand supporting income returns- **Infrastructure benefits**: Major infrastructure spending through 2029 should support long-term capital growth across all property segments- **Supply timing**: Purchasing before major apartment completions in 2026 may capture current growth trends- **Lifestyle migration**: Ongoing Sydney out-migration supports sustained demand for quality properties- **Government support**: Planning reforms and first-home buyer incentives are supporting market activity**Risks:**- **Affordability constraints**: Rapid price growth combined with high interest rates may limit further buyer demand and constrain future growth- **Supply surge impact**: Over 840 new apartments in 2026 could soften unit price growth if tenant demand fails to keep pace- **Economic sensitivity**: As a regional market, Wollongong remains vulnerable to broader economic downturns that could reduce interstate migration- **Interest rate risk**: Further rate increases could significantly impact borrowing capacity and buyer demand- **Moderating growth expectations**: The exceptional 5-10 year performance is unlikely to repeat, with more modest 3-7% annual growth expected

It's something we develop in our Australia property pack.

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.

Sources

1. Wollongong Price Forecasts - BambooRoutes
2. Average House Price Wollongong - BambooRoutes
3. SQM Research - Wollongong Property Prices
4. Wollongong Real Estate Market - BambooRoutes
5. Apartment Development Wollongong - A&D
6. NSW Government - Affordable Housing Wollongong
7. Illawarra Rental Yields Guide 2025
8. NSW Rental Yields - Savings.com.au
9. Newcastle Property Market 2025 - Joris
10. SQM Research - Wollongong Weekly Rents