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
This guide covers everything a foreign investor needs to know about renting out residential property in Wollongong in early 2026, from legal requirements and rental yields to neighborhood performance and tenant preferences.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in the Wollongong property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Wollongong.
Insights
- Wollongong's rental vacancy rate sits below 1% in early 2026, making it one of Australia's tightest rental markets and giving landlords strong bargaining power when setting rents.
- Foreign investors in Wollongong face a 5% annual surcharge land tax on the full land value with no threshold, which can easily exceed A$20,000 per year and turn positive cashflow negative.
- Units near the University of Wollongong achieve gross yields of 4.0 to 4.5%, significantly outperforming houses at 3.3%, making apartments the smarter entry point for yield-focused investors.
- Wollongong is not included in NSW's 180-day short-term rental cap, meaning non-hosted Airbnb properties can legally operate 365 days per year here.
- Average Airbnb occupancy in Wollongong sits around 54% with an average daily rate of A$234, but shoulder seasons can be soft unless properties are well-positioned near beaches or transport.
- North Wollongong units recorded 15.2% annual price growth and offer 4.6% rental yields, making it one of the strongest dual-purpose investment suburbs in the region.
- The temporary ban on foreign purchases of established dwellings runs until 31 March 2027, meaning most foreign investors must target new builds or off-the-plan purchases in Wollongong.
- Furnished rentals in Wollongong can command 10 to 15% higher rents and rent faster, especially in the UOW student and hospital staff segments where tenants often relocate without furniture.
- A foreign investor purchasing a A$700,000 unit in Wollongong would pay roughly A$63,000 in surcharge purchaser duty alone, on top of regular stamp duty and ongoing surcharge land tax.
- Wollongong rents have grown 7.4% year-on-year, outpacing many regional NSW markets, and experts forecast continued rental pressure through 2026 due to population growth and limited supply.
Can I legally rent out a property in Wollongong as a foreigner right now?
Can a foreigner own-and-rent a residential property in Wollongong in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Wollongong, but the bigger challenge is what you can actually purchase due to a temporary ban on established dwellings.
Most foreign investors in Wollongong hold property through direct individual ownership after obtaining Foreign Investment Review Board approval, though some use Australian company structures for additional flexibility.
The main restriction right now is that Australia has banned foreign persons from buying existing homes from 1 April 2025 to 31 March 2027, which means foreign buyers in Wollongong must generally look at new dwellings, off-the-plan purchases, or vacant land with a requirement to build.
If you're not a local, you might want to read our guide to foreign property ownership in Wollongong.
Do I need residency to rent out in Wollongong right now?
No, you do not need Australian residency to rent out a property in Wollongong, and many foreign landlords successfully manage their Wollongong rentals entirely from overseas through local property managers.
You will almost certainly need an Australian Tax File Number (TFN) to declare your rental income, and the ATO provides a specific application process for people living outside Australia.
A local Australian bank account is not legally required to collect rent in Wollongong, but it is highly practical because most property managers prefer remitting funds to an Australian trust account first.
Managing a Wollongong rental remotely is entirely feasible since the standard Australian model involves appointing a licensed property manager who handles tenant selection, rent collection, maintenance, and compliance on your behalf.
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What rental strategy makes the most money in Wollongong in 2026?
Is long-term renting more profitable than short-term in Wollongong in 2026?
As of early 2026, long-term renting in Wollongong generally delivers more reliable net income for overseas investors because short-term rental profits get eaten by higher operating costs, management complexity, and seasonal occupancy swings.
A well-managed long-term rental in Wollongong might generate around A$28,000 to A$34,000 (US$18,000 to US$22,000, or €17,000 to €20,000) net per year for a typical two-bedroom unit, while a well-managed short-term rental could gross 20 to 30% more but often nets similarly or less after cleaning, platform fees, utilities, and higher vacancy.
Short-term renting tends to outperform financially in Wollongong for beachfront or beach-adjacent properties in North Wollongong, Thirroul, and Austinmer where summer peak demand and event weekends justify premium nightly rates.
What's the average gross rental yield in Wollongong in 2026?
As of early 2026, the average gross rental yield for residential properties in Wollongong sits around 3.5 to 4.0% when blending houses and units together.
The realistic gross yield range in Wollongong spans from about 3.0% for premium beachfront houses up to 4.6% for well-located units near the university or CBD.
Units consistently achieve the highest gross rental yields in Wollongong, with apartments near the University of Wollongong and in suburbs like West Wollongong and Fairy Meadow regularly hitting 4.0 to 4.5%.
By the way, we have much more granular data about rental yields in our property pack about Wollongong.
What's the realistic net rental yield after costs in Wollongong in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Wollongong typically falls between 2.3% and 3.3% before financing costs.
Most Wollongong landlords experience net yields in the range of 1.8% at the low end (premium beachfront houses with high strata and maintenance) to around 3.5% at the high end (well-bought units with low levies).
The three main cost categories that reduce gross yield to net yield specifically in Wollongong are the 5% annual surcharge land tax for foreign owners (which has no threshold and can exceed A$20,000 per year), strata levies for units (often A$3,500 to A$8,000 per year), and accelerated coastal maintenance due to salt air corrosion on fixtures and exteriors.
You might want to check our latest analysis about gross and net rental yields in Wollongong.
What monthly rent can I get in Wollongong in 2026?
As of early 2026, typical monthly rents in Wollongong for well-located properties run around A$1,650 (US$1,070, €990) for a studio, A$2,080 (US$1,350, €1,250) for a one-bedroom, and A$2,820 (US$1,830, €1,690) for a two-bedroom apartment.
A realistic entry-level monthly rent for a decent studio in Wollongong ranges from A$1,400 to A$1,700 (US$910 to US$1,100, €840 to €1,020), depending on whether it is in a fringe suburb or closer to the CBD and beaches.
A typical mid-range one-bedroom apartment in Wollongong rents for A$1,900 to A$2,200 per month (US$1,230 to US$1,430, €1,140 to €1,320), with newer buildings and better locations commanding the upper end.
A typical mid-to-high two-bedroom apartment in Wollongong rents for A$2,500 to A$3,200 per month (US$1,620 to US$2,080, €1,500 to €1,920), with beachside and CBD locations pushing toward the top of that range.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Wollongong.
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 are the real numbers I should budget for renting out in Wollongong in 2026?
What's the total "all-in" monthly cost to hold a rental in Wollongong in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Wollongong ranges from A$600 to A$1,300 (US$390 to US$845, €360 to €780) for most investor-grade properties, excluding mortgage payments but including a foreign investor's surcharge land tax.
A realistic low-to-high monthly cost range that covers most standard Wollongong rentals runs from A$450 per month (US$290, €270) for a simple house with no strata up to A$1,500 per month (US$975, €900) for an apartment in a building with high levies and a foreign owner paying surcharge land tax.
For foreign investors specifically, the single largest contributor to total monthly holding cost in Wollongong is almost always the 5% surcharge land tax, which on a property with A$400,000 land value equates to A$20,000 per year or roughly A$1,670 per month before you even count council rates, insurance, or management fees.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Wollongong.
What's the typical vacancy rate in Wollongong in 2026?
As of early 2026, the typical vacancy rate for rental properties in Wollongong sits below 1%, which is one of the tightest rental markets in regional Australia.
Landlords in Wollongong should realistically budget for about two to three weeks of vacancy per year, because even in a tight market your specific property can sit empty during tenant changeovers or if it is priced slightly above market.
The main factor that causes vacancy rates to vary across Wollongong neighborhoods is proximity to the three demand anchors: the University of Wollongong corridor (Keiraville, Gwynneville, North Wollongong), the CBD and train station, and the main beaches.
December through February typically sees the highest tenant turnover in Wollongong because this is when student leases end, and a secondary spike occurs mid-year around July when university semesters change and some professionals relocate.
We have a whole part covering the best rental strategies in our pack about buying a property in Wollongong.
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Where do rentals perform best in Wollongong in 2026?
Which neighborhoods have the highest long-term demand in Wollongong in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Wollongong are the Wollongong CBD (walkability, services, beach access), North Wollongong (beach and university proximity), and Fairy Meadow (affordable, close to the CBD/UOW corridor).
Families looking for long-term rentals in Wollongong gravitate most strongly toward Figtree, Mount Ousley, and Mangerton, where quieter streets, good schools, and larger homes create stable, multi-year tenancies.
Students drive the strongest rental demand in Keiraville, Gwynneville, and North Wollongong, which form the UOW-adjacent belt that is often called Wollongong's "rental engine" with essentially zero vacancy for decent properties.
Expats and international professionals tend to cluster in North Wollongong, Thirroul, and Austinmer, where coastal lifestyle, cafe culture, and easy Sydney commuting via the South Coast Line justify premium rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Wollongong.
Which neighborhoods have the best yield in Wollongong in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Wollongong are Fairy Meadow, West Wollongong, and Coniston, all of which offer strong rents relative to more affordable purchase prices.
The estimated gross rental yield range for these top-yielding Wollongong neighborhoods runs from about 4.0% to 4.6%, compared to the citywide average of roughly 3.5%.
The main characteristic that allows these suburbs to achieve higher yields is their position in the "close to demand, not the priciest postcard" zone, where rents stay strong due to proximity to UOW, the CBD, and transport, but purchase prices have not inflated as sharply as beachfront suburbs.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Wollongong.
Where do tenants pay the highest rents in Wollongong in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Wollongong are Thirroul, Austinmer, and prime pockets of North Wollongong, all commanding significant premiums over the city average.
The typical monthly rent range for a standard apartment in these premium Wollongong neighborhoods runs from A$2,600 to A$3,800 (US$1,690 to US$2,470, €1,560 to €2,280), with beachfront houses sometimes exceeding A$4,500 per month.
The main characteristic that makes these neighborhoods command the highest rents is their combination of direct beach access, established cafe and dining precincts, and reliable train connections to Sydney, which together create a lifestyle package that tenants pay substantially more for.
The tenant profile in these highest-rent Wollongong suburbs typically includes senior professionals who commute to Sydney a few days per week, dual-income couples prioritizing lifestyle over space, and relocating executives or medical specialists on generous housing allowances.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Wollongong in 2026?
What features increase rent the most in Wollongong in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Wollongong are secure undercover parking (especially in the CBD and beach suburbs where street parking is competitive), air conditioning (essential in Wollongong's humid coastal summers), and a genuinely usable outdoor space like a balcony large enough for a table rather than just a standing ledge.
Secure parking in parking-constrained Wollongong suburbs can add a rent premium of 8 to 12%, which translates to roughly A$150 to A$250 per month on a typical two-bedroom apartment.
One commonly overrated feature that Wollongong landlords invest in but tenants do not pay much extra for is high-end kitchen appliances, because most renters care more about functional, clean kitchens than brand names, and the premium rarely justifies the renovation cost.
One affordable upgrade that provides a strong return on investment for Wollongong landlords is installing ceiling fans with reverse cycle split-system air conditioning, which adds tenant comfort, reduces utility complaints, and typically costs under A$2,500 while supporting a noticeable rent uplift.
Do furnished rentals rent faster in Wollongong in 2026?
As of early 2026, furnished apartments in Wollongong typically rent one to two weeks faster than unfurnished equivalents, particularly in the UOW student belt and hospital-adjacent areas where tenants often relocate without their own furniture.
Furnished apartments in Wollongong generally command a rent premium of 10 to 15% over unfurnished equivalents, though this premium narrows for longer leases and widens for short stays or corporate lets targeting medical and university staff.
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How regulated is long-term renting in Wollongong right now?
Can I freely set rent prices in Wollongong right now?
Yes, landlords in Wollongong can freely set the initial rent price at the start of a new tenancy, as NSW does not have rent control on starting rents.
However, once a tenant is in place, rent increases in Wollongong are regulated to no more than once every 12 months with at least 60 days' written notice, and tenants can challenge increases they believe are excessive through NSW Fair Trading or the NSW Civil and Administrative Tribunal.
What's the standard lease length in Wollongong right now?
The standard lease length for residential rentals in Wollongong is typically 6 or 12 months as a fixed-term agreement, after which most leases roll over into a periodic (month-to-month) tenancy.
The maximum security deposit (called a rental bond in NSW) that a landlord can legally require in Wollongong is generally four weeks' rent for properties renting under A$900 per week, which translates to roughly A$2,600 to A$3,600 (US$1,690 to US$2,340, €1,560 to €2,160) for most typical apartments.
At the end of a tenancy in Wollongong, the rental bond must be returned through NSW Fair Trading's Rental Bonds Online system within 14 days of the landlord receiving the tenant's forwarding address and bond claim, with any deductions for damage or unpaid rent requiring either tenant agreement or a tribunal order.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Wollongong in 2026?
Is Airbnb legal in Wollongong right now?
Yes, Airbnb-style short-term rentals are legal in Wollongong as long as hosts comply with NSW's STRA (Short-Term Rental Accommodation) framework, which includes registration, fire safety requirements, and adherence to a code of conduct.
NSW uses a registration system rather than a traditional license, meaning Wollongong hosts must register their property on the NSW STRA Register before listing it on platforms like Airbnb, and the process is straightforward and completed online.
Wollongong is not included in the list of areas subject to NSW's 180-day cap on non-hosted rentals, which means you can legally operate a non-hosted Airbnb property in Wollongong for up to 365 days per year, though strata by-laws may impose additional restrictions in some apartment buildings.
The most common penalty for operating a non-compliant short-term rental in NSW includes fines of up to A$22,000 for individuals and A$110,000 for corporations, plus potential removal from booking platforms if registration details cannot be verified.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Wollongong.
What's the average short-term occupancy in Wollongong in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Wollongong sits around 54%, indicating moderate demand with meaningful competition for bookings.
The realistic occupancy range for most Wollongong short-term rentals spans from about 25% for entry-level properties up to 70% or higher for top-performing listings with excellent locations, reviews, and amenities.
December, January, and February (summer school holidays) see the highest occupancy rates for Wollongong short-term rentals, with beach-adjacent properties often exceeding 80% occupancy during this peak period.
June and July typically see the lowest occupancy rates for Wollongong short-term rentals because winter reduces beach tourism, though properties near the university can maintain steadier year-round bookings from visiting academics and student families.
Finally, please note that you can find much more granular data about this topic in our property pack about Wollongong.
What's the average nightly rate in Wollongong in 2026?
As of early 2026, the average nightly rate (ADR) for short-term rentals in Wollongong is approximately A$234 (US$152, €140), though this varies significantly by property type and location.
The realistic nightly rate range for most Wollongong short-term rental listings spans from A$120 (US$78, €72) for entry-level studios and basic apartments up to A$485 or more (US$315, €290) for premium beachfront properties with excellent reviews.
The typical nightly rate difference between peak season (December to February) and off-season (June to August) in Wollongong is roughly A$80 to A$120 (US$52 to US$78, €48 to €72), with savvy hosts using dynamic pricing to capture summer premiums while maintaining bookings in quieter months.
Is short-term rental supply saturated in Wollongong in 2026?
As of early 2026, the short-term rental market in Wollongong is moderately competitive but not severely saturated, with approximately 650 active listings and a 54% average occupancy suggesting room still exists for well-positioned properties.
The number of active short-term rental listings in Wollongong has been growing steadily but not explosively, with supply increases roughly tracking population and tourism growth rather than outpacing demand.
The most oversaturated neighborhoods for short-term rentals in Wollongong are North Wollongong and the immediate CBD beachfront strip, where high listing density means new entrants must compete heavily on price, reviews, and amenities.
Neighborhoods in Wollongong that still have room for new short-term rental supply include Thirroul and Austinmer (where demand outpaces current listings), as well as areas near Wollongong Hospital and UOW that cater to visiting medical staff and academic families rather than pure tourists.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Wollongong, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Australian Taxation Office (ATO) | Official government legislative summary for foreign investment rules. | We used it to confirm the exact dates (1 Apr 2025 to 31 Mar 2027) and scope of the foreign buyer ban. We also used it to explain what foreigners can still purchase. |
| Australian Treasury Minister Media Release | Official government announcement explaining the policy change. | We used it to anchor the "as of January 2026" legal reality for foreign buyers. We also used it to describe the narrow exceptions at a high level. |
| Revenue NSW (Surcharge Land Tax) | Official NSW tax authority page with current surcharge rates. | We used it to confirm the 5% surcharge land tax rate for foreign owners from 2025. We also used it to explain it applies with no threshold. |
| Revenue NSW (Surcharge Purchaser Duty) | Official NSW tax authority page with the current surcharge rate. | We used it to price the extra stamp duty surcharge for foreign purchasers (9% from 1 Jan 2025). We also used it to explain it sits on top of normal transfer duty. |
| NSW Planning (STRA Framework) | Official NSW planning framework page for short-term rental rules. | We used it to describe STRA registration, fire safety, and code of conduct requirements. We also used it to explain why Wollongong is not subject to the 180-day cap. |
| NSW Government (Rent Increases) | Official NSW consumer guidance reflecting current tenancy rules. | We used it to explain rent increases are limited to once every 12 months. We also used it to confirm tenants can challenge excessive increases. |
| AirDNA (Wollongong) | Widely used STR data provider with transparent methodology. | We used it to estimate typical STR occupancy and daily rates in Wollongong for early 2026. We also used it to assess whether the STR market looks saturated. |
| Wollongong City Council (Revenue Policy) | Official council schedule for rates and charges for 2025-26. | We used it to ground council costs in an official local document. We also used it to support the all-in monthly cost budgeting section. |
| Wollongong City Council Housing Monitor | Official council data compiled with PropTrack rental information. | We used it to track rental price trends and vacancy indicators. We also used it to validate rent growth percentages for Wollongong. |
| InvestorKit (Wollongong Market Analysis) | Independent property research firm with detailed market metrics. | We used it to confirm vacancy rates below 1% and rental yield differentials. We also used it to understand the supply-demand dynamics. |
| OpenAgent (Wollongong Investment Guide) | Real estate platform with suburb-level investment analysis. | We used it to identify top-performing suburbs for yield and growth. We also used it to validate neighborhood demand patterns. |
| ATO (TFN Application for Non-Residents) | Official ATO process for non-residents to get a Tax File Number. | We used it to answer whether foreign landlords need a local tax number. We also used it to explain the application method for overseas owners. |
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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