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Wollongong's property market is experiencing strong momentum with house prices at $1.26-$1.27 million and apartments around $690,000-$750,000 as of September 2025.
The city offers compelling opportunities for both investors and owner-occupiers, driven by its proximity to Sydney, coastal lifestyle, and robust rental demand with vacancy rates below 1%.
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Wollongong's property market shows sustained growth with apartments outperforming houses in both price appreciation and rental yields.
Strong buyer demand continues to outpace supply, creating opportunities across different property types and budget ranges.
| Property Type | Median Price (Sept 2025) | Annual Growth | Rental Yield | Market Outlook |
|---|---|---|---|---|
| Houses | $1.26-$1.27M | +6% | 3.3% | Moderate growth expected |
| Apartments | $690,000-$750,000 | +7.4% | 4.1-4.6% | Strong investor demand |
| Townhouses | $850,000-$1M | +5-7% | 3.8-4.2% | Appeal to downsizers |
| Top Growth Suburbs | Kiama ($1.5M) | +8.9% | Variable | Premium coastal demand |
| Value Opportunities | Warrawong ($787K) | +9% | Higher yields | Strong rental demand |
| Investment Focus | Central apartments | +7%+ | 4.5%+ | Transport hub proximity |
| Market Forecast | 3-7% growth expected | Next 12 months | Improving yields | Interest rate cuts support |
What's the current median house and apartment price in Wollongong right now?
As of September 2025, Wollongong's median house price sits at approximately $1.26-$1.27 million, while apartments range from $690,000 to $750,000.
Houses have maintained steady pricing above the $1.26 million mark throughout 2025, representing significant value compared to Sydney's premium market. The apartment segment shows more variation, with newer developments and central locations commanding prices closer to $750,000, while older units or those in outer suburbs start around $690,000.
These prices reflect Wollongong's position as a major regional center offering coastal lifestyle benefits at a fraction of Sydney's cost. The city's proximity to Australia's largest metropolitan area, combined with its own economic fundamentals, supports these price levels. Areas like the CBD and beachfront suburbs command premium prices, while growth corridors like Dapto and Warrawong offer more affordable entry points.
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How have prices changed in the past 12 months compared to the past 5 years?
Wollongong's property market has delivered consistent growth, with houses appreciating 6% in the past 12 months and apartments performing even stronger at 7.4%.
The longer-term picture reveals remarkable growth momentum. Over the past five years, house prices have surged approximately 53%, while the decade-long trend shows an impressive 118% increase. This sustained appreciation reflects the city's transformation from a traditional industrial center to a desirable lifestyle destination with strong economic diversity.
Recent growth rates have moderated from the pandemic-era peaks but remain robust compared to national averages. The apartment sector's outperformance in the past year signals shifting buyer preferences toward more affordable property types and rental investment opportunities. This trend aligns with increased demand from first-home buyers and investors seeking higher yields than available in Sydney's saturated market.
The five-year growth trajectory positions Wollongong among Australia's strongest performing regional markets, supported by infrastructure development, population growth, and lifestyle migration from Sydney.
What are the short-term forecasts for Wollongong's property market in the next 6-12 months?
Market analysts project continued moderate growth of 3-7% for Wollongong property prices over the next 6-12 months, supported by anticipated interest rate cuts in late 2025.
The Reserve Bank's expected monetary policy easing should stimulate buyer activity and support price growth across all property types. However, new housing supply from government reforms and planned developments may temper the pace of appreciation compared to previous years. This balanced outlook suggests sustainable growth rather than speculative price surges.
Apartment markets are expected to lead growth due to strong rental demand and investor interest. The sub-$750,000 price point attracts first-home buyers benefiting from government incentives and investors seeking higher yields than available in premium markets. New supply in the CBD and growth corridors should meet demand without creating oversupply conditions.
Seasonal factors typically see increased activity from spring through early autumn, with the 2025-26 summer period likely to drive transaction volumes as interest rate cuts take effect.
What do medium-term projections suggest about Wollongong's market over the next 2-5 years?
Medium-term projections indicate robust but more measured growth as affordability constraints and increased supply moderate the explosive appreciation of recent years.
Infrastructure developments including transport upgrades, new educational facilities, and coastal precinct enhancements will continue supporting demand. However, analysts expect annual growth rates to settle in the 4-8% range rather than the double-digit increases seen during the pandemic era. This normalization reflects market maturation and improved supply responses to demand pressures.
Population growth projections support continued housing demand, with lifestyle migration from Sydney expected to persist despite higher local prices. The region's employment diversification beyond traditional industries creates a broader economic base supporting property values. New residential developments planned across multiple suburbs should help address supply shortages while maintaining market stability.
Government housing policies focused on affordability and medium-density development will shape the market landscape. These initiatives should support continued growth while preventing the extreme price escalation that creates affordability crises in other markets.
What are the long-term fundamentals driving demand in Wollongong over 10+ years?
Wollongong's long-term property demand rests on four key fundamentals: proximity to Sydney, lifestyle amenities, economic diversification, and geographic constraints on land supply.
The city's position within commuting distance of Sydney ensures continued lifestyle migration as remote work arrangements become permanent and housing affordability drives relocation decisions. This proximity advantage is enhanced by transport infrastructure investments improving connectivity to the broader metropolitan region. The coastal lifestyle offering beaches, mountains, and outdoor recreation appeals to families and retirees seeking quality of life improvements.
Economic diversification beyond the traditional steel industry has created a more resilient employment base. The University of Wollongong, healthcare sector, technology companies, and tourism industry provide diverse job opportunities supporting population growth. Government investments in innovation precincts and sustainable industries position the city for future economic expansion.
Geographic constraints limit developable land supply, particularly in premium coastal areas. This natural scarcity supports long-term value appreciation as demand continues growing. Urban infill and medium-density development can accommodate population growth while preserving the city's character and lifestyle appeal.
Which Wollongong suburbs are showing the strongest growth and which are lagging?
| Suburb | Median House Price | Annual Growth Rate | Growth Category | Key Drivers |
|---|---|---|---|---|
| Kiama | $1.5M | +8.9% | Strongest Growth | Coastal lifestyle, premium location |
| Warrawong | $787K | +9.0% | Strongest Growth | Affordability, development potential |
| Dapto | $795K | +8.2% | Strong Growth | New estates, family appeal |
| Fairy Meadow | $1.1M | +7.5% | Strong Growth | Central location, amenities |
| Coledale | $1.2M | +6.1% | Moderate Growth | Established coastal suburb |
| Unanderra | $850K | +6.0% | Moderate Growth | Industrial proximity limits |
| Wollongong CBD | $950K | +7.0% | Strong Growth | Apartment developments, transport |
How do different property types compare in terms of price trends and rental demand?
Apartments are currently outperforming other property types with 7.4% annual price growth and the strongest rental demand in Wollongong's market.
The apartment segment benefits from affordability relative to houses, attracting first-home buyers and investors seeking higher yields. Rental demand for apartments remains exceptional with vacancy rates below 1% and yields ranging from 4.1-4.6%. New apartment developments near transport hubs and the CBD command premium rents and strong capital appreciation.
Detached houses show steadier but slower price growth at 6% annually, with rental yields around 3.3%. Houses appeal to families and lifestyle buyers prioritizing space and amenities. Premium suburbs like Kiama and established areas near beaches maintain strong demand despite higher price points. The house rental market serves families willing to pay premiums for quality locations and larger spaces.
Townhouses occupy the middle market with moderate price appreciation of 5-7% and yields of 3.8-4.2%. This property type attracts downsizers from houses and upgraders from apartments, creating steady demand. New townhouse developments in growth corridors like Dapto offer contemporary living with community amenities appealing to young professionals and small families.
What are the current rental yields across different areas and property types?
Wollongong's rental market delivers competitive yields with apartments leading at 4.1-4.6%, houses at 3.3%, and townhouses at 3.8-4.2%.
Apartment yields are particularly strong in central locations and newer developments where rental demand is highest. Areas near the university, CBD, and transport connections command premium rents while maintaining high occupancy rates. The sub-1% vacancy rate across the city supports continued yield improvements as rental growth outpaces modest increases in property prices.
Geographic variations significantly impact yields, with affordable suburbs like Warrawong and Dapto offering higher returns due to strong rental demand relative to purchase prices. Premium coastal areas like Kiama provide lower yields but stronger capital appreciation prospects. Central Wollongong apartments near employment and amenities achieve optimal balance of yield and growth.
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The rental market's strength reflects limited new supply and continued population growth. Government housing initiatives and new residential developments may moderate yield growth over time, but current fundamentals support sustained rental returns above national averages.
How does buyer demand compare with the supply of new listings right now?
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Buyer demand significantly outpaces supply across Wollongong, with inventory levels consistently below three months across most suburbs.
The supply shortage is most acute in the apartment sector where strong investor and first-home buyer demand meets limited new listings. Established properties receive multiple offers, often selling above asking prices within weeks of listing. New developments sell quickly, sometimes off-the-plan before construction completion.
House supply varies by suburb, with premium coastal areas having extremely limited listings while growth corridors like Dapto see more regular turnover. The shortage of quality listings in established suburbs drives buyer competition and supports continued price appreciation. Properties in good condition and desirable locations typically sell within 30-45 days.
New supply from planned developments should begin easing market tightness over the next 2-3 years. However, the pipeline primarily consists of apartments and townhouses rather than detached houses, maintaining pressure in the premium house market. This supply-demand imbalance supports continued moderate price growth across all property types.
What budget ranges are most competitive and where are the opportunities for different buyer types?
The $700,000-$1 million range for houses and $600,000-$750,000 for apartments represent the most competitive segments in Wollongong's market.
First-home buyers with limited budgets find opportunities in suburbs like Warrawong ($787,000 median), Dapto ($795,000), and Unanderra ($850,000). These areas offer strong growth potential, improving infrastructure, and access to employment centers. Government incentives for first-home buyers enhance affordability in these price ranges, making entry-level ownership achievable.
Mid-range buyers ($800,000-$1.2 million) can access quality houses in established suburbs like Fairy Meadow or newer developments in growth corridors. This segment offers choice between renovation opportunities in older areas or move-in-ready properties in contemporary developments. Competition remains strong but not as intense as premium price ranges.
Higher budget buyers ($1.2 million+) target coastal suburbs like Kiama, premium CBD apartments, or large family homes in established areas. This segment faces less competition but limited supply, requiring patience to find suitable properties. Premium buyers benefit from stronger capital appreciation prospects and lifestyle amenities.
If you're buying to live in, which suburbs offer the best value for lifestyle, amenities, and future growth?
For owner-occupiers, Fairy Meadow, Dapto, and Coledale offer the optimal combination of lifestyle amenities, affordability, and growth prospects.
Fairy Meadow provides central location benefits with proximity to the university, beaches, and CBD while maintaining more affordable pricing than premium coastal suburbs. The area offers established amenities, schools, and transport connections suitable for families and professionals. Future growth prospects remain strong due to continued infrastructure development and lifestyle appeal.
Dapto represents exceptional value for families seeking new housing with modern amenities and room for expansion. New estates offer contemporary designs, community facilities, and proximity to employment centers. The suburb's transformation from rural to residential creates significant future growth potential as development continues and infrastructure improves.
Coledale delivers coastal lifestyle benefits at more accessible prices than premium beachfront locations. The established suburb offers quality schools, recreational facilities, and community character while maintaining growth potential. Beach access, mountain views, and train connections to Sydney provide lifestyle and practical benefits supporting long-term value.
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If you're buying to rent out or resell, where are the strongest opportunities based on rental demand and resale potential?
For investors, Warrawong, central Wollongong apartments, and Dapto townhouses offer the strongest combination of rental yields, capital growth, and resale potential.
Warrawong delivers exceptional investor returns with 9% annual price growth and higher rental yields due to affordable purchase prices meeting strong rental demand. The suburb's ongoing gentrification and infrastructure improvements support both rental income and capital appreciation. Properties near transport and shopping centers perform particularly well for rental returns.
Central Wollongong apartments provide optimal rental demand due to proximity to employment, university, and amenities. Vacancy rates remain minimal while rental growth outpaces many other areas. New apartment developments offer modern features attractive to quality tenants willing to pay premium rents. Resale potential benefits from continued CBD development and lifestyle appeal.
Dapto's growth corridor status creates opportunities in both rental income and capital appreciation. New townhouse developments appeal to family renters and offer strong resale prospects as the area develops. Investment properties benefit from new infrastructure, shopping centers, and improved transport connections driving both rental and resale demand.
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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 compelling opportunities for both investors and owner-occupiers in late 2025.
The combination of moderate price growth, strong rental demand, and diverse suburb options creates multiple pathways for property success in this thriving coastal city.
Sources
- SQM Research - Wollongong Property Prices
- InvestorKit - Wollongong Market Review
- BambooRoutes - Wollongong Price Forecasts
- Domain - Wollongong Suburb Profile
- View.com.au - Wollongong Price Forecasts
- A-D Property - Wollongong Apartment Development
- OpenAgent - Wollongong Investment Areas
- Australian Property Professionals - Wollongong Investment Guide