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Property prices in Wollongong are experiencing steady growth as we reach mid-2025, with median house prices now sitting at $1,260,000 to $1,270,000.
The coastal city's property market has shown remarkable resilience, recording a 6% annual increase for houses and an even stronger 7.4% growth for units over the past 12 months. This upward trend is driven by persistent demand from Sydney buyers seeking lifestyle alternatives, tight rental markets with vacancy rates below 1%, and ongoing infrastructure improvements that continue to enhance Wollongong's appeal as a prime regional investment destination.
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Property prices in Wollongong are rising, with houses up 6% and units up 7.4% in the past year. The market is supported by strong demand from Sydney buyers, population growth of 1.2-1.6% annually, and limited housing supply.
Experts predict continued growth of 3-7% in 2025, though new government housing reforms may gradually ease supply constraints. With median house prices at $1.26-1.27 million and rental vacancy rates below 1%, Wollongong remains a premium regional market with sustained upward price pressure.
| Key Metric | Current Value (June 2025) | 12-Month Change |
|---|---|---|
| Median House Price | $1,260,000 - $1,270,000 | +6% |
| Median Unit Price | $690,000 - $750,000 | +7.4% |
| Rental Vacancy Rate | Below 1% | Tightening |
| Population Growth | 1.2% - 1.6% annually | 5,000 new residents yearly |
| Days on Market | 33 days (houses) | Stable |
| Rental Yield | 3.3% (houses), 4.2% (units) | Steady |
| Price Forecast 2025 | 3% - 7% growth expected | Moderate growth ahead |
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.
What are the current median property prices in Wollongong as of June 2025?
As we reach mid-2025, Wollongong's median house price has climbed to between $1,260,000 and $1,270,000, representing a significant 6% increase from the previous year.
The unit market shows even stronger performance, with median prices ranging from $690,000 to $750,000, marking a robust 7.4% annual growth. This outpaces the house market and reflects changing buyer preferences for more affordable, low-maintenance living options near the coast.
Three-bedroom houses in Wollongong are currently averaging around $900,000, providing a mid-range option for families. The premium coastal suburbs like Coledale and Wombarra continue to drive the upper end of the price range, with ocean-view properties commanding a 25% premium over comparable inland homes.
These price levels place Wollongong among Australia's most expensive regional markets, with house prices now exceeding those of Newcastle ($837,000) and sitting just 24% below Sydney's median of $1,650,000. The sustained price growth reflects Wollongong's evolution from an industrial city to a premium lifestyle destination.
It's something we develop in our Australia property pack.
How much have property prices increased in Wollongong over the past 12 months?
Property prices in Wollongong have shown solid growth over the past 12 months, with houses increasing by 6% and units performing even better with a 7.4% rise.
This growth pattern reflects a shift in market dynamics, with apartments and units becoming increasingly attractive to buyers seeking affordability. The unit market's stronger performance is particularly noteworthy, as it indicates growing demand for lower-maintenance properties close to amenities and transport links.
Rental yields have also increased by 2% during 2024, with units now yielding between 4.1% and 4.6%, while houses offer around 3.3%. This improvement in rental returns is attracting more investors to the Wollongong market, particularly those seeking better yields than Sydney can offer.
The consistent price growth throughout the past year demonstrates Wollongong's resilience against broader economic headwinds. Despite interest rates remaining at 4.10% as of April 2025, buyer demand has remained robust, supported by the city's lifestyle appeal and relative affordability compared to Sydney.
Which Wollongong suburbs have seen the biggest price increases recently?
Several Wollongong suburbs have recorded impressive price growth over the past year, with some areas significantly outperforming the broader market.
| Suburb | Median House Price | Annual Growth | Key Growth Driver |
|---|---|---|---|
| Kiama | $1,500,000 | 8.9% | Coastal lifestyle appeal |
| Warrawong | $787,000 | 9% | Affordability factor |
| Dapto | $795,000 | 8.2% | New housing estates |
| Fairy Meadow | Not specified | 7.78% | Central location |
| Wongawilli | Not specified | 6.99% | Rural lifestyle shift |
| Coledale | Not specified | 6.12% | Premium coastal location |
| Unanderra | Not specified | 5.99% | Value for money |
Are apartments or houses experiencing stronger price growth in Wollongong?
Apartments and units in Wollongong are clearly outperforming houses in terms of price growth, with a 7.4% annual increase compared to 3.3% for houses over the same period.
This trend reflects a significant shift in buyer preferences, particularly among younger buyers and empty nesters who are prioritizing low-maintenance living options close to amenities. The demand for apartments has been further boosted by affordability considerations, as units offer a more accessible entry point into the Wollongong property market.
Developers are responding to this trend by launching numerous apartment projects in areas with good access to transport links and the coastline. Properties near the University of Wollongong and in the CBD are particularly sought after, with North Wollongong emerging as a hotspot for luxury apartment developments.
Ocean-view properties continue to command premium prices regardless of property type, with coastal apartments and houses both priced approximately 25% higher than comparable inland properties. This premium reflects the enduring appeal of Wollongong's stunning coastline and the lifestyle it offers.
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What do property price forecasts predict for Wollongong in 2025 and beyond?
Market analysts are predicting continued moderate growth for Wollongong property prices in 2025, with most forecasts ranging between 3% and 7% annual appreciation.
Looking at historical trends, Wollongong house prices have increased by 53% over the past five years (approximately $438,000 from $822,000 in 2020 to $1.26 million in 2025) and an impressive 118% over the past decade. This strong historical performance provides context for future expectations, though experts anticipate a more moderate pace going forward.
Several factors support the positive outlook for 2025: anticipated interest rate cuts are expected to boost buyer confidence, population growth continues at 1.2-1.6% annually (adding 5,000 new residents yearly), and infrastructure improvements including transport upgrades between Wollongong and Sydney are enhancing the city's connectivity.
However, affordability constraints and new housing supply from state government reforms are expected to temper price growth in the medium term. The NSW government's low and mid-rise housing reforms, effective from February 2025, will allow more duplexes, terraces, and low-rise apartments within 800 meters of train stations and town centers, potentially easing supply pressures.
For the next 10-20 years, analysts predict continued but subdued growth as affordability limits and increased supply balance against strong demand fundamentals driven by Wollongong's proximity to Sydney and coastal lifestyle appeal.
How do current Wollongong property prices compare to five years ago?
Wollongong property prices have experienced remarkable growth over the past five years, with median house prices surging from approximately $822,000 in 2019/2020 to the current $1,260,000-$1,270,000 in mid-2025.
This represents a substantial 53% increase, or about $438,000 in nominal terms, demonstrating the strong demand that has characterized the Wollongong market during this period. The growth has been particularly pronounced since the COVID-19 pandemic, when regional lifestyle markets surged in popularity as buyers sought space and coastal living.
The five-year growth rate in Wollongong, while impressive, is actually lower than the average for big regional cities. However, when viewed over a 10-year horizon, Wollongong's 118% price growth significantly exceeds the regional average, largely due to the boom period before 2019.
This historical context is important for understanding current market dynamics. The extremely high past growth, combined with current affordability challenges (with an affordability index of 57 years), suggests that future price growth may be more moderate as the market reaches maturity levels.
What impact will 2025 interest rates have on Wollongong property prices?
As of April 2025, the RBA cash rate stands at 4.10%, and market sentiment is building around anticipated rate cuts that could significantly impact Wollongong's property market.
Current market conditions show that despite elevated interest rates, demand in Wollongong remains robust, with low inventory levels and strong buyer competition continuing to support price growth. Any rate cuts in the coming months are expected to further stimulate demand and accelerate price appreciation.
The anticipation of rate reductions has already begun boosting buyer confidence, with many potential purchasers preparing to enter the market. This psychological effect is particularly important in a market like Wollongong, where affordability is already stretched with median house prices exceeding $1.2 million.
It's something we analyze in detail in our Australia property pack.
Interest rate movements will be especially critical for first-home buyers, who have been increasingly priced out of the market. Lower rates could improve borrowing capacity and bring more buyers into the market, potentially adding further upward pressure on prices. However, this could also exacerbate affordability challenges in an already expensive market.
How are NSW government housing policies affecting Wollongong property prices?
The NSW government's housing reforms are set to have a significant impact on Wollongong's property market dynamics in 2025 and beyond.
New affordable housing initiatives are delivering hundreds of affordable units in central Wollongong, with developers receiving incentives to include affordable housing components in their projects. These initiatives aim to address the growing affordability crisis, where median house prices now require 57 years of average income to purchase.
The low and mid-rise housing reforms, enforced from February 2025, represent a major shift in planning policy. These reforms allow expanded zoning for duplexes, terraces, and low-rise apartments within 800 meters of train stations and town centers, significantly increasing development potential in well-connected areas.
While these policies are expected to gradually improve affordability and increase housing stock, the immediate impact on prices may be limited. Market analysts suggest that the new supply will take time to materialize, and strong demand fundamentals are likely to absorb additional stock without causing significant price corrections.
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.
What economic factors are driving property price growth in Wollongong?
Several key economic indicators are contributing to sustained price pressure in Wollongong's property market as we move through 2025.
Population growth remains a primary driver, running at 1.2-1.6% annually and adding approximately 5,000 new residents each year. The city is projected to reach 332,000 residents by the end of 2025, with 55% of new residents coming from Greater Sydney seeking affordability and lifestyle benefits, while 25% are international migrants including students and skilled workers.
The rental market is experiencing acute pressure with vacancy rates below 1%, the lowest in years. This has driven rental prices up 7.4% year-on-year, creating a competitive environment that's pushing more people to consider buying rather than renting. The tight rental market is particularly affecting students and young professionals, adding to purchase demand.
Employment conditions remain relatively strong with unemployment at 5.9% in Q2 2024, slightly above the NSW average but with elevated job vacancies indicating an active job market. Infrastructure spending jumped 9% in 2024, with $97.2 million invested across 573 projects, enhancing the city's appeal to buyers.
Housing construction activity remains below demand levels, with new approvals failing to keep pace with population growth. This supply-demand imbalance continues to be a fundamental driver of price appreciation in the Wollongong market.
How is population growth and migration affecting Wollongong property prices?
Population dynamics are playing a crucial role in Wollongong's property price growth, with distinct patterns emerging in both internal and international migration.
Internal migration from Sydney accounts for 55% of new Wollongong residents, with buyers attracted by the coastal lifestyle and relative affordability compared to Sydney's $1.65 million median house price. These Sydney migrants typically have higher purchasing power, often selling Sydney properties to buy in Wollongong, which puts upward pressure on local prices.
International migration contributes 25% of new residents, primarily consisting of students attending the University of Wollongong and skilled migrants. While international students primarily impact the rental market initially, many transition to permanent residents and eventual property buyers, creating a pipeline of future demand.
However, Wollongong has experienced negative net internal migration in recent years, with some residents leaving due to housing affordability challenges. This outflow is more than offset by international arrivals and Sydney migrants, but it highlights the affordability pressures facing local residents.
The sustained population growth of 1.2-1.6% annually ensures continued housing demand, but analysts note that the nature of this growth - heavily reliant on temporary residents and Sydney overflow - may create different market dynamics than traditional regional growth patterns.
How do Wollongong property prices compare to Sydney and Newcastle in 2025?
Wollongong's position in the NSW property market hierarchy reveals interesting dynamics about regional price movements and buyer preferences.
| City | Median House Price | Median Unit Price | Key Market Characteristic |
|---|---|---|---|
| Sydney | $1,650,000 | ~$800,000 | Premium capital city market |
| Wollongong | $1,260,000 | $690,000-$750,000 | Premium regional lifestyle market |
| Newcastle | $837,000 | Not specified | Affordable regional alternative |
Wollongong houses are now priced approximately 24% below Sydney, making them an attractive alternative for Sydney buyers seeking coastal lifestyle without the full capital city premium. However, Wollongong is significantly more expensive than Newcastle, with house prices about 50% higher.
This pricing structure reflects Wollongong's unique position as a premium regional market. Its proximity to Sydney (just 80km south), combined with its coastal appeal and established infrastructure, commands prices well above other regional centers. The city has essentially become an extension of the greater Sydney market rather than a traditional regional center.
It's worth exploring this comparison further in our Australia property pack.
What are property market experts saying about Wollongong's price outlook?
Property market analysts and experts are generally optimistic about Wollongong's price trajectory, though opinions vary on the exact magnitude of growth expected.
The consensus view anticipates moderate, sustainable growth in 2025, with most experts predicting price increases between 3-7%. This reflects a maturation of the market after years of strong growth, with analysts noting that Wollongong's median house price already exceeds most Australian capital cities except Sydney.
Key factors cited by experts include continued demand from Sydney buyers seeking lifestyle changes, major infrastructure projects like 'The Globe' ($229 million three-tower precinct), and the city's evolution into a knowledge economy hub centered around the university. However, experts also highlight risks including affordability constraints limiting local buyer participation and the potential impact of increased housing supply from planning reforms.
Investment sentiment remains positive, particularly for suburbs with strong growth fundamentals and infrastructure investment. Analysts specifically highlight coastal and central areas where demand continues to significantly outstrip supply. As one expert noted: "Wollongong's status as a growing regional hub with proximity to Sydney keeps drawing in buyers from around the country... Demand, especially in the coastal and central areas, still outstrips supply by a mile, making any major price dips a long shot."
The rental market's strength, with yields improving and vacancy rates at historic lows, is also supporting investor confidence despite relatively low yields compared to other regional markets.
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.
Yes, property prices in Wollongong are going up, with house prices rising 6% and units climbing 7.4% over the past year to reach median values of $1.26-1.27 million and $690,000-750,000 respectively.
The market's upward trajectory is supported by strong fundamentals including population growth of 1.2-1.6% annually, extremely tight rental conditions with vacancy rates below 1%, and sustained demand from Sydney buyers seeking coastal lifestyle alternatives. With expert forecasts predicting continued growth of 3-7% in 2025 and limited housing supply despite new government reforms, Wollongong's property market shows clear signs of ongoing price appreciation, making the answer definitively "Yes" - prices are going up.
Sources
- Wollongong Real Estate Market Update - 2025
- Yes, property prices will rise in Wollongong in 2025 – Bamboo Routes
- The Illawarra Property Market for May 2025
- Wollongong, NSW 2500: Suburb Profile & Property Report
- Market Pressure Review: Wollongong In 10 Charts
- 7 statistics for the Wollongong real estate market in 2025
- Best Suburbs for Property Investment in the Illawarra April 2025
- Best areas to invest in Wollongong, Illawarra, and the South Coast in 2025
- Illawarra property market bucks the national trend
- Best Real Estate Investment Areas Wollongong & Illawarra