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
Wollongong's property market continues to attract attention in 2026, with prices still climbing despite tighter lending rules and affordability pressures.
This coastal city south of Sydney offers a unique mix of lifestyle appeal, geographic scarcity, and strong rental demand that shapes its housing trends.
In this article, we break down current housing prices in Wollongong, recent growth patterns, and what forecasters expect for the years ahead, and we constantly update this blog post with the latest data.
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
- Units in Wollongong outpaced houses over the past 12 months, growing around 12% compared to 10% for detached homes, as buyers shifted toward more affordable options.
- The average detached house in Wollongong now sits at roughly A$1.28 million, making the price gap with Sydney's outer suburbs increasingly narrow.
- APRA's new debt-to-income limits starting February 2026 could reduce borrowing capacity for premium house buyers in Wollongong's coastal suburbs.
- Thirroul, Austinmer, and Coledale remain Wollongong's fastest-rising neighborhoods, driven by extreme land scarcity between the ocean and escarpment.
- Wollongong's population is forecast to reach around 225,600 residents in 2026, creating sustained demand pressure especially for units and townhouses.
- The CBD apartment pipeline is expected to bring new supply in coming years, which could moderate unit price growth compared to land-scarce house markets.
- Investor lending has risen strongly in late 2025, supporting demand in rental-secure suburbs like Keiraville, Gwynneville, and North Wollongong.
- Over the next five years, Wollongong property prices could rise between 15% and 30%, with townhouses and well-located units likely leading growth.
- The Mount Ousley Interchange upgrade is expected to improve accessibility and could lift property values in nearby commuter-friendly suburbs.
What are the current property price trends in Wollongong as of 2026?
What is the average house price in Wollongong as of 2026?
As of January 2026, the average detached house price in Wollongong sits at approximately A$1.28 million (around US$830,000 or €770,000), while units average about A$750,000 (US$490,000 or €450,000) and townhouses fall in between at roughly A$950,000 (US$620,000 or €570,000).
When it comes to price per square meter, Wollongong houses average around A$7,100 per square meter (US$4,600 or €4,300), while units command a higher rate of approximately A$8,800 per square meter (US$5,700 or €5,300) due to their typically smaller footprints and often better locations.
For a realistic picture of what most buyers actually pay in Wollongong, roughly 80% of property purchases fall between A$550,000 and A$1.6 million (US$360,000 to US$1.04 million or €330,000 to €960,000), with the lower end covering older units and the upper end reaching into quality family homes in desirable suburbs.
How much have property prices increased in Wollongong over the past 12 months?
Property prices in Wollongong have increased by approximately 10.3% over the past 12 months, with the market showing consistent strength throughout 2025.
Looking at different property types, houses in Wollongong grew around 10.1% year-on-year while units outperformed at roughly 12%, reflecting a shift in buyer demand toward more affordable housing options as detached homes become increasingly expensive.
The single most significant factor behind this price growth in Wollongong has been constrained supply, as the city's geography between the ocean and escarpment limits new housing development while demand from Sydney commuters and lifestyle seekers remains strong.
Which neighborhoods have the fastest rising property prices in Wollongong as of 2026?
As of January 2026, the three neighborhoods with the fastest rising property prices in Wollongong are Thirroul, Austinmer, and Keiraville, each benefiting from distinct but powerful demand drivers.
Thirroul and Austinmer have seen annual price growth estimated in the low double digits, while Keiraville has grown strongly in the high single digits, reflecting the premium buyers are willing to pay for coastal lifestyle and university-adjacent convenience.
The main demand driver for these fast-growing Wollongong neighborhoods is extreme scarcity, as Thirroul and Austinmer have almost no room for new development between the ocean and escarpment, while Keiraville benefits from constant rental demand from University of Wollongong students and staff.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Wollongong.
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.
Which property types are increasing faster in value in Wollongong as of 2026?
As of January 2026, the ranking of property types by value appreciation in Wollongong places units and apartments at the top (around 12% annual growth), followed by townhouses (estimated 10-11%), detached houses (around 10%), and villas (estimated 8-9%).
Units and apartments in Wollongong have appreciated at approximately 12% over the past year, making them the top-performing property type in the current market cycle.
The main reason units are outperforming other property types in Wollongong is affordability, as house prices have risen to levels where many buyers simply cannot stretch their borrowing power far enough, pushing demand toward well-located units and townhouses that still offer beach access and rail connectivity.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Wollongong?
- How much should you pay for a house in Wollongong?
- How much should you pay for an apartment in Wollongong?
- How much should you pay for a townhouse in Wollongong?
- How much should you pay for a studio in Wollongong?
- How much should you pay for a duplex in Wollongong?
What is driving property prices up or down in Wollongong as of 2026?
As of January 2026, the top three factors driving property prices in Wollongong are geographic supply constraints (ocean and escarpment limit new housing), strong investor lending activity, and population growth creating sustained household demand.
The single factor with the strongest upward pressure on Wollongong property prices is the geographic scarcity of land, as the city cannot easily expand due to natural barriers, which keeps supply tight even when demand surges from Sydney commuters and lifestyle buyers.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Wollongong here.
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What is the property price forecast for Wollongong in 2026?
How much are property prices expected to increase in Wollongong in 2026?
As of January 2026, property prices in Wollongong are expected to increase by approximately 5% to 7% over the calendar year, with a planning midpoint of around 6%.
Forecasts from different analysts range from around 4% on the conservative side to 8% in more optimistic scenarios, reflecting uncertainty about interest rate movements and how tightly new lending rules will bite.
The main assumption underlying most price forecasts for Wollongong in 2026 is that the RBA will hold rates steady or cut modestly, keeping borrowing power stable enough to support ongoing buyer demand in this Sydney-linked coastal market.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Wollongong.
Which neighborhoods will see the highest price growth in Wollongong in 2026?
As of January 2026, the neighborhoods expected to see the highest price growth in Wollongong include Corrimal and Fairy Meadow (value-focused family suburbs), Woonona and Bulli (rail-connected coastal), and Gwynneville and Keiraville (inner ring near the university).
These top-performing Wollongong neighborhoods are projected to see price growth in the range of 6% to 9% during 2026, slightly outperforming the city average due to their specific demand drivers.
The primary catalyst driving expected growth in these neighborhoods is affordability relative to premium coastal suburbs, combined with good transport links and strong rental demand from students and young professionals.
One emerging Wollongong neighborhood that could surprise with higher-than-expected growth is Mount Saint Thomas, which offers family-friendly housing at lower price points while still being close to the CBD and university precinct.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Wollongong.
What property types will appreciate the most in Wollongong in 2026?
As of January 2026, townhouses and well-located units are expected to appreciate the most in Wollongong, as they sit at the affordability sweet spot where buyers priced out of houses redirect their demand.
The projected appreciation for top-performing townhouses and units in Wollongong is around 6% to 8% during 2026, slightly ahead of the broader market average.
The main demand trend driving appreciation for these property types in Wollongong is the "trade-down" effect, where buyers who cannot afford detached houses pivot to medium-density options that still offer good locations near beaches, rail stations, or the university.
Conversely, brand-new CBD apartments may underperform in Wollongong during 2026 because the incoming supply pipeline could create competition among sellers, putting pressure on resale prices for recently completed units.
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.
How will interest rates affect property prices in Wollongong in 2026?
As of January 2026, the current interest rate environment is supportive for Wollongong property prices, as the RBA cash rate of 3.60% is not at crisis levels and mortgage rates remain manageable for most borrowers.
The RBA cash rate target currently sits at 3.60%, and most forecasters expect rates to either hold steady or drift slightly lower during 2026, which would support or modestly boost borrowing capacity for Wollongong buyers.
In Wollongong, a 1% change in interest rates typically shifts borrowing power by around 10% to 12%, meaning a rate cut could bring more buyers into the market for premium suburbs, while a rate hike would push demand further toward units and more affordable areas.
You can also read our latest update about mortgage and interest rates in Australia.
What are the biggest risks for property prices in Wollongong in 2026?
As of January 2026, the three biggest risks for property prices in Wollongong are APRA's new debt-to-income lending limits (effective February 2026), a potential oversupply of CBD apartments if completions accelerate, and an affordability ceiling if wage growth fails to keep pace with prices.
The risk with the highest probability of materializing in Wollongong is the impact of APRA's debt-to-income limits, which will directly reduce how much some buyers can borrow and could particularly cool demand in premium coastal suburbs where large mortgages are common.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Wollongong.
Is it a good time to buy a rental property in Wollongong in 2026?
As of January 2026, the overall assessment is that Wollongong offers solid conditions for rental property buyers, particularly for units and townhouses in high-demand areas near the university, hospital, or rail stations.
The strongest argument in favor of buying a rental property now in Wollongong is that rental demand remains robust due to population growth, a large student population, and limited new housing supply, which supports both occupancy rates and rental yields.
The strongest argument for waiting before buying a rental property in Wollongong is that APRA's new lending rules could reduce competition from other investors in coming months, potentially creating better buying opportunities later in 2026.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Wollongong.
You'll also find a dedicated document about this specific question in our pack about real estate in Wollongong.
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Where will property prices be in 5 years in Wollongong?
What is the 5-year property price forecast for Wollongong as of 2026?
As of January 2026, property prices in Wollongong are expected to grow by approximately 15% to 30% cumulatively over the next five years, with a base-case midpoint of around 22%.
The range of 5-year forecasts spans from a conservative 15% (if rates stay higher and lending remains tight) to an optimistic 30% (if rates fall meaningfully and demand surges), reflecting genuine uncertainty about economic conditions.
This translates to a projected average annual appreciation rate of roughly 3% to 5% per year over the next five years in Wollongong, with the base case sitting around 4% annually.
The key assumption most forecasters rely on for their 5-year Wollongong predictions is that population growth will continue steadily, housing supply will remain constrained by geography, and interest rates will not return to crisis-era highs.
Which areas in Wollongong will have the best price growth over the next 5 years?
The top three areas in Wollongong expected to have the best price growth over the next five years are the inner ring suburbs (North Wollongong, Gwynneville, Keiraville), the northern coastal strip (Thirroul, Austinmer, Woonona), and the family value belt (Corrimal, Figtree, Fairy Meadow).
These top-performing Wollongong areas are projected to see 5-year cumulative growth of roughly 25% to 35%, outperforming the city average due to their combination of demand drivers and supply constraints.
This aligns closely with our shorter-term 2026 forecast, though over five years the coastal suburbs may pull further ahead as land scarcity becomes an even more binding constraint while inland areas benefit from sustained affordability-driven demand.
The currently undervalued area in Wollongong with the best potential for outperformance over five years is Mangerton, which offers proximity to the CBD and university at prices below neighboring suburbs, making it attractive as affordability pressures intensify.
What property type will give the best return in Wollongong over 5 years as of 2026?
As of January 2026, townhouses and well-located units are expected to give the best total return over five years in Wollongong, combining solid capital growth with strong rental yields in high-demand areas.
The projected 5-year total return (appreciation plus rental income) for top-performing townhouses and units in Wollongong is estimated at 40% to 55%, factoring in both price growth of 25% to 35% and cumulative rental yields of around 15% to 20%.
The main structural trend favoring this property type over the next five years in Wollongong is the affordability squeeze on houses, which will continue pushing buyers and renters toward medium-density options that still offer good locations and lifestyle amenities.
For investors seeking the best balance of return and lower risk over five years in Wollongong, villas offer a compelling option as they attract stable long-term tenants (often downsizers or retirees) while facing less price volatility than houses or new apartments.
How will new infrastructure projects affect property prices in Wollongong over 5 years?
The top three major infrastructure projects expected to impact property prices in Wollongong over the next five years are the Mount Ousley Interchange upgrade (improving the main gateway to Sydney), ongoing rail service improvements, and urban renewal projects in the CBD and waterfront areas.
Properties near completed infrastructure projects in Wollongong typically command a price premium of around 5% to 15% compared to similar properties further away, with the premium strongest for projects that meaningfully reduce commute times or improve daily convenience.
The specific Wollongong neighborhoods that will benefit most from these infrastructure developments include the suburbs around the Mount Ousley corridor (like Mount Ousley and Mount Pleasant), northern suburbs with improved rail access (Thirroul, Bulli, Woonona), and the CBD fringe areas benefiting from urban renewal.
How will population growth and other factors impact property values in Wollongong in 5 years?
Wollongong's population is projected to grow at around 0.8% to 1.0% annually over the next five years (reaching approximately 235,000 to 240,000 residents by 2031), which will create sustained demand pressure and support property values, particularly for units and townhouses where most new housing can be built.
The demographic shift that will have the strongest influence on property demand in Wollongong is the growth of smaller households (singles, couples, and downsizers), which will drive demand for well-located units and villas rather than large family homes.
Migration patterns will significantly affect Wollongong property values over five years, as the city continues to attract domestic migrants from Sydney seeking more affordable lifestyle options, while international students and skilled workers add to rental demand near the university and CBD.
The property types and areas that will benefit most from these demographic trends in Wollongong are units and townhouses in the inner ring (near the university and hospital), coastal suburbs with rail access (for Sydney commuters), and family-friendly suburbs with good schools (Figtree, Corrimal, Fairy Meadow).
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 is the 10 year property price outlook in Wollongong?
What is the 10-year property price prediction for Wollongong as of 2026?
As of January 2026, property prices in Wollongong are expected to grow by approximately 50% to 70% cumulatively over the next ten years, with a base-case midpoint of around 60%.
The range of 10-year forecasts spans from a conservative 50% (assuming periods of flat or slow growth) to an optimistic 70% (if economic conditions remain favorable and supply stays constrained), reflecting the genuine uncertainty inherent in long-term predictions.
This translates to a projected average annual appreciation rate of roughly 4% to 5.5% per year over the next decade in Wollongong, with the base case sitting around 4.8% annually.
The biggest uncertainty factor in making 10-year property price predictions for Wollongong is the interest rate cycle, as even small shifts in long-term rate expectations can significantly alter borrowing capacity and buyer demand over a decade-long horizon.
What long-term economic factors will shape property prices in Wollongong?
The top three long-term economic factors that will shape property prices in Wollongong over the next decade are interest rate cycles (setting borrowing capacity), population and household growth (driving demand), and housing supply constraints (limiting how quickly the market can respond to demand).
The single long-term economic factor that will have the most positive impact on property values in Wollongong is the city's geographic scarcity, as the ocean and escarpment permanently limit land supply while Sydney's growth continues to push demand into this well-connected coastal market.
The single long-term economic factor that poses the greatest structural risk to property values in Wollongong is affordability deterioration, as prices rising faster than incomes could eventually reduce the pool of buyers who can afford to enter the market, particularly for detached houses.
You'll also find a much more detailed analysis in our pack about real estate in Wollongong.
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 |
|---|---|---|
| Reserve Bank of Australia (RBA) | It's the official source for Australia's policy interest rate. | We used it to anchor the interest rate backdrop as of January 2026. We then translated rate settings into typical buyer borrowing power and price pressure. |
| Australian Bureau of Statistics (ABS) Lending Indicators | It's Australia's official statistics agency publishing national lending activity. | We used it to gauge demand strength via new owner-occupier and investor loan growth. We then linked lending momentum to price growth and competition in Wollongong. |
| ABS Building Approvals | It's the official monthly read on new housing supply coming through approvals. | We used it to understand the construction pipeline nationally as a proxy for future supply pressure. We then combined it with local pipeline evidence for Wollongong. |
| Wollongong City Council Housing Monitor | It's published via Council's platform using PropTrack data. | We used it to ground Wollongong-specific trends rather than guessing from Sydney data. We then cross-checked direction and magnitude against other market indices. |
| PropTrack Home Price Index | It's a major, method-based index from a large Australian property data provider. | We used it to benchmark broader market momentum and turning points. We then scaled those signals to Wollongong's housing mix. |
| SQM Research Wollongong Series | It's a long-running Australian housing data provider with published methodology. | We used it for timely, January 2026 adjacent price trend signals including 12-month percentage change. We then triangulated it with sale-based medians. |
| Cotality (formerly CoreLogic) Monthly Housing Chart Pack | It's one of Australia's most cited housing analytics providers used by banks and media. | We used it to sanity-check the national cycle including growth, affordability constraints, and momentum shifts. We then interpreted what that cycle typically means for coastal markets like Wollongong. |
| APRA DTI Limits Information Paper | It's the banking regulator setting system-wide mortgage risk limits. | We used it to identify a 2026 policy brake on very stretched borrowing. We then explained how this can cap top-end bidding in pricier Wollongong suburbs. |
| APRA DTI Limits News Release | It's APRA's plain-language announcement of the policy and timing. | We used it to communicate the rule change simply for non-professional readers. We then connected it to demand sensitivity by property type. |
| Transport for NSW Mount Ousley Interchange | It's the official NSW transport project source for a key Wollongong gateway upgrade. | We used it to identify infrastructure that can reshape accessibility and desirability. We then mapped the likely benefit to nearby suburbs. |
| Wollongong City Council Population Forecast | It's published through Council's forecasting portal with stated methodology. | We used it to ground long-run demand from more households needing homes. We then linked growth to which housing types are likely most needed. |
| Wollongong City Council Housing Strategy | It's the Council's adopted plan guiding housing for the next 10 to 20 years. | We used it to understand where housing is intended to go and what constraints exist. We then aligned our assessments with planning reality. |
| Colliers 2025 Wollongong Apartment Report | It's a major global real estate consultancy with transparent market reporting. | We used it for the Wollongong CBD apartment pipeline outlook. We then connected that pipeline to future unit price growth expectations. |
| Westpac Housing Pulse | It's a major bank research publication with explicit forecast numbers. | We used it to bound the national base case for 2026 price growth. We then adjusted for Wollongong's local supply, affordability, and commuter demand. |
| NAB Residential Property Survey | It's a major bank survey of property professionals with stated methodology. | We used it to cross-check forecast direction and risk factors including rates, supply, and sentiment. We then translated those into practical scenarios for Wollongong. |
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If you want to go deeper, you can read the following: