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As of September 2025, Wollongong's property market demonstrates solid growth momentum with median house prices reaching $1.26 million and unit prices averaging $690,000-$750,000. The market is characterized by tight supply conditions, below 1% rental vacancy rates, and strong investor interest accounting for approximately 60% of all purchases.
Population growth forecasts of 1.2-1.6% annually over the next five years, combined with ongoing infrastructure development and limited housing supply, are expected to sustain upward pressure on both prices and rents across the Wollongong residential market.
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Wollongong's property market shows continued strength with house prices at $1.26 million (up 6% year-on-year) and unit prices growing faster at 7.4% annually.
The market benefits from extremely tight rental conditions (sub-1% vacancy), strong population growth, and significant investor activity driving 12-24 month price growth forecasts of 3-7%.
| Market Indicator | Current Status | 12-Month Change |
|---|---|---|
| Median House Price | $1.26 million | +6% |
| Median Unit Price | $690,000-$750,000 | +7.4% |
| House Rental Yield | 3.3% | Increasing |
| Unit Rental Yield | 4.0-4.5% | Increasing |
| Rental Vacancy Rate | Below 1% | Tightening |
| Time on Market | 33 days | Stable |
| Population Growth Forecast | 1.2-1.6% annually | Steady |
What's the current median house price in Wollongong, and how has it changed compared to last year?
The current median house price in Wollongong sits at approximately $1.26 million as of September 2025.
This represents a solid 6% increase compared to last year, demonstrating the ongoing strength of the Wollongong residential market. The price growth reflects continued demand pressure from both local buyers and investors seeking opportunities in the Illawarra region.
The $1.26 million median positions Wollongong houses significantly below Sydney's median prices while maintaining strong capital growth potential. This price point continues to attract buyers who want coastal lifestyle benefits without the premium costs associated with Sydney's beachside suburbs.
Market analysts attribute the 6% annual growth to limited housing supply, steady population increases, and Wollongong's appeal as both a lifestyle destination and investment location.
The current pricing trajectory suggests Wollongong houses remain relatively affordable compared to Sydney, while delivering consistent capital appreciation for property owners.
How do unit prices compare to house prices in Wollongong, and what's their growth trend over the past 12 months?
Median unit prices in Wollongong currently range from $690,000 to $750,000, making them significantly more affordable than the $1.26 million median house price.
Units have actually outperformed houses in terms of growth, with unit prices increasing by 7.4% over the past 12 months compared to 6% for houses. This stronger growth rate reflects increased buyer demand for more affordable entry points into the Wollongong property market.
The unit market particularly appeals to first-home buyers, downsizers, and investors seeking lower purchase prices and higher rental yields. Many buyers view units as a stepping stone into the Wollongong market or as lower-maintenance investment properties.
The price gap between houses and units (approximately $500,000-$600,000) remains substantial, providing clear differentiation between the two market segments.
This growth pattern indicates strong underlying demand across all property types in Wollongong, with units potentially offering better value appreciation in the current market cycle.
What's the average rental yield for houses and apartments in Wollongong right now?
Current rental yields in Wollongong average 3.3% for houses and 4.0-4.5% for units as of September 2025.
These yields represent an improvement from previous years, with both house and unit rental returns increasing due to strong rental demand and limited available properties. The rental market tightness has enabled landlords to achieve higher weekly rents while maintaining low vacancy periods.
Unit yields of 4.0-4.5% significantly exceed house yields of 3.3%, making apartments particularly attractive to investors seeking rental income. This yield differential reflects the lower purchase prices of units combined with strong rental demand from tenants seeking affordable accommodation.
The improving rental yields coincide with Wollongong's extremely tight rental market, where vacancy rates sit below 1% and rental competition remains intense among prospective tenants.
These yield levels compare favorably to many Sydney locations while providing the added benefit of potential capital growth in a strengthening regional market.
How high is the current rental vacancy rate in Wollongong, and how does it compare with the state average?
Wollongong's current rental vacancy rate sits below 1%, creating an extremely tight rental market for prospective tenants.
This vacancy rate is significantly lower than the NSW state average, indicating much stronger rental demand relative to available supply in the Wollongong market. The sub-1% vacancy represents one of the tightest rental markets in regional NSW.
Such low vacancy rates create intense competition among renters, with multiple applications common for available properties and rental prices continuing to rise due to supply constraints. Landlords benefit from minimal void periods and strong negotiating power for rental increases.
The tight rental market stems from population growth, limited new rental supply, and Wollongong's appeal to both students and working professionals who cannot afford to purchase property.
This rental market strength supports both current rental yields and future rental growth prospects, making Wollongong attractive for property investors focused on rental income.
What are the population growth forecasts for Wollongong over the next five years, and how might that impact housing demand?
Population growth forecasts anticipate Wollongong will experience steady annual growth of 1.2-1.6% over the next five years.
This growth rate translates to approximately 5,000 new residents per year, creating sustained demand for additional housing across both purchase and rental markets. The population increase reflects Wollongong's attractiveness for lifestyle seekers, retirees, and working professionals seeking alternatives to Sydney.
Key growth drivers include the University of Wollongong's continued expansion, infrastructure improvements including transport links to Sydney, and the region's coastal lifestyle appeal. Additionally, remote working trends have enabled more professionals to relocate from expensive Sydney areas to Wollongong.
The projected 5,000 annual population increase will require significant new housing supply to meet demand, likely supporting continued upward pressure on both property prices and rental rates throughout the forecast period.
This population growth, combined with limited developable land in many desirable coastal areas, suggests housing demand will continue to exceed supply over the next five years, supporting property values and rental markets.
How many new housing developments or apartment projects are planned or under construction in Wollongong, and what is their estimated completion timeline?
Multiple new housing developments and apartment projects are currently planned or underway across Wollongong's growth suburbs.
Most projects are estimated for completion over the next 12-36 months, with the majority concentrated in areas identified for urban renewal and population growth. These developments include both residential subdivisions and multi-story apartment complexes designed to meet diverse housing needs.
Development activity focuses particularly on suburbs with good transport access, proximity to employment centers, and areas designated for higher-density living under local planning frameworks. Major projects typically require 18-36 months from construction commencement to completion.
However, the scale of new development may still be insufficient to meet the projected population growth of 5,000 residents annually, suggesting continued supply constraints despite increased construction activity.
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What's the current average time on market for properties in Wollongong, and has it been increasing or decreasing this year?
The current average time on market for Wollongong properties is approximately 33 days as of September 2025.
This timeframe has remained relatively stable throughout 2025, indicating consistent buyer demand and market activity levels. The 33-day average suggests a balanced market where properties sell within reasonable timeframes without extended marketing periods.
Market conditions support this stable selling timeframe, with sufficient buyer activity to maintain momentum while not creating the rushed conditions seen in some overheated markets. Properties priced appropriately for current market conditions typically achieve sales within this 33-day average.
The stable time on market reflects the ongoing balance between buyer demand and property supply, with neither excessive buyer competition driving ultra-fast sales nor weak demand extending marketing periods significantly.
This consistency in selling timeframes provides confidence for both sellers planning their next purchase and buyers understanding typical market response times for properties in their target areas.
How are interest rates affecting borrowing power and property demand specifically in Wollongong?
Current interest rate levels have reduced borrowing power for Wollongong property buyers, moderating overall demand compared to previous low-rate periods.
The higher interest rate environment has particularly impacted first-home buyers and owner-occupiers who rely heavily on mortgage financing to enter the market. Many potential buyers find their borrowing capacity reduced by 15-25% compared to the ultra-low rate period of 2020-2021.
However, Wollongong's relatively affordable property prices compared to Sydney help offset some borrowing power constraints, keeping the market accessible to buyers who might be priced out of metropolitan areas entirely. Cash buyers and investors with substantial deposits remain active participants.
The moderated demand from interest rate impacts has contributed to more stable price growth rather than the rapid increases seen during the low-rate period, creating a more sustainable market environment.
Property demand remains solid despite borrowing constraints, suggesting underlying market fundamentals including population growth and lifestyle appeal continue to support buyer interest in Wollongong real estate.
What percentage of sales in Wollongong are going above asking price, and what's the average discounting rate for properties that sell below asking?
| Sale Category | Percentage of Sales | Average Variance from Asking |
|---|---|---|
| Above Asking Price | 20-25% | Varies by property type |
| Below Asking Price | 75-80% | 3-5% discount |
| At Asking Price | 5-10% | Exact match |
| Auction Sales | Variable | Often above reserve |
| Private Treaty | Majority | Negotiation dependent |
| Prime Locations | Higher above asking | Stronger competition |
| Standard Locations | More discounting | Standard negotiation |
How do Wollongong's employment and income growth trends compare with Sydney's, and what does that mean for housing affordability?
Wollongong's employment and income growth currently trails Sydney's pace but shows steady improvement across key economic sectors.
While Sydney benefits from stronger job creation and higher average income levels, Wollongong's employment market is strengthening through university expansion, healthcare sector growth, and emerging technology industries. The income gap between the two cities remains significant but has been gradually narrowing.
This employment and income growth pattern creates improving affordability conditions for local Wollongong buyers, as property prices remain substantially below Sydney levels while local earning capacity continues to strengthen. The affordability advantage makes Wollongong increasingly attractive to Sydney workers considering relocation.
Local buyers benefit from relatively stable employment conditions combined with property prices that remain accessible to median-income households, unlike Sydney where housing affordability has become increasingly challenging for average earners.
The gradual improvement in local employment and income trends supports sustainable demand for Wollongong property while maintaining the region's affordability advantage over Sydney metropolitan areas.
What percentage of Wollongong's buyers are first-home buyers versus investors, and how has that ratio shifted recently?
First-home buyers currently account for approximately 18-22% of all Wollongong property purchases, while investors make up around 60% of the buyer pool.
This ratio has shifted further toward investors in recent months due to the tight rental market conditions and attractive rental yields available in Wollongong. Investors are drawn by sub-1% vacancy rates and improving rental returns, while first-home buyers face affordability challenges from higher interest rates.
The remaining 18-20% of buyers consist primarily of owner-occupiers upgrading or relocating, including Sydney residents seeking lifestyle changes and retirees moving to the region. This buyer category provides stability to the market through consistent demand.
The investor dominance reflects Wollongong's appeal as a rental investment destination, with strong tenant demand, growing rental yields, and capital growth potential attracting property investment funds and individual investors.
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How do property market analysts forecast Wollongong's house and unit prices to change in the next 12 to 24 months, and what's the estimated percentage growth or decline?
Property market analysts forecast house and unit price growth of 3-7% for Wollongong over the next 12-24 months.
This growth prediction reflects continued population increases, limited housing supply, and ongoing infrastructure investment in the region. Analysts expect the pace of growth to moderate toward 2026 as interest rate impacts stabilize and new supply begins to enter the market.
House prices are expected to grow at the lower end of the 3-7% range due to their higher price points and interest rate sensitivity, while units may achieve growth toward the higher end of the forecast range due to continued affordability advantages and investor demand.
Key factors supporting the positive growth forecast include Wollongong's population growth projections, the extremely tight rental market, and continued appeal to both lifestyle seekers and investors. Infrastructure improvements and university expansion also underpin long-term demand expectations.
The moderate growth forecast suggests a sustainable market trajectory that balances continued price appreciation with affordability maintenance, avoiding the rapid price increases that can create market instability.
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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 demonstrates solid fundamentals with median house prices at $1.26 million and units ranging $690,000-$750,000, both showing healthy annual growth of 6-7.4% respectively.
The combination of sub-1% rental vacancy rates, 1.2-1.6% annual population growth, and investor dominance at 60% of purchases suggests continued upward pressure on both prices and rents throughout 2025-2026.
Sources
- Ready Set Buy - Wollongong Real Estate Market Update 2025
- BambooRoutes - Average House Price Wollongong
- BambooRoutes - Wollongong Price Forecasts
- Propertyology - 2025 Property Market Outlook
- The Illawarra Buyers Agent - Understanding Rental Yields Guide
- BambooRoutes - Wollongong Real Estate Market
- Joanne D - Wollongong Property Market Outlook
- InvestorKit - Market Pressure Review Wollongong