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What do the latest numbers reveal about Wollongong’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does local development influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Wollongong, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Wollongong’s infrastructure spending increased by 9% in 2024, enhancing property values near new developments
In 2024, Wollongong's infrastructure spending jumped by 9%, significantly boosting property values near new developments.
This increase was part of a larger plan detailed in the Infrastructure Delivery Program for 2024-2025 to 2027-2028, which aimed to enhance the city's infrastructure. The program focused on projects like extending footpaths, managing flood risks, and building new community facilities, making the city more appealing to potential buyers.
The Annual Report for 2023-2024 revealed that Wollongong City Council invested $97.2 million across 573 projects in the area. Of this, $55.9 million was dedicated to renewing and replacing existing assets, while $41.3 million went towards upgrading, constructing, or purchasing new assets. These efforts were designed to improve the city's quality of life and connectivity.
According to the Property Market Forecast, these infrastructure improvements, such as better transportation links and new community facilities, were expected to make Wollongong more connected and attractive. This led to increased property values near these new developments, as these areas became more desirable.
Sources: Infrastructure Delivery Program 2024-2025 to 2027-2028, Annual Report 2023-2024, Property Market Forecast
2) Nearly 70% of Wollongong residents own homes, keeping ownership rates stable
In Wollongong, 64% of households were either purchasing or fully owned their homes in 2021.
This figure, while slightly below the 70% mark, still highlights a strong trend of homeownership in the area. The rest of the residents are split between 23.1% renting privately and 6.8% living in social housing, showing a diverse housing landscape.
The stability in homeownership rates over the years suggests that consistent economic conditions or supportive housing policies might be at play. This steady trend is crucial for potential buyers looking for a stable market.
For those considering a move to Wollongong, understanding these dynamics can be beneficial. The city's housing market offers a mix of ownership and rental opportunities, catering to different preferences and financial situations.
Whether you're looking to buy or rent, Wollongong's housing market provides options that reflect its stable ownership ratio. This balance is appealing for both long-term residents and newcomers.
Sources: Wollongong City Council Community Profile, Wollongong Dwellings Profile
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.
3) Rental yields in Wollongong increased by 2% in 2024 compared to the previous year
In 2024, Wollongong experienced a 2% rise in rental yields compared to the previous year.
Back in 2023, Wollongong's rental yields were averaging around 3.3%, which was lower than most big regional and capital cities, except for Sydney. This lower yield might have initially deterred some investors, but the recent increase suggests a shift in the market dynamics.
Units in Wollongong had a rental yield of 4.1%4.6% and Shellharbour at 3.7%, highlighting the diverse demand and supply dynamics in the region.
These variations in rental yields across the region likely influenced investor interest and tenant demand in Wollongong. The increase in yields might also be a reflection of broader economic conditions or shifts in the local housing market, making Wollongong more appealing to both renters and investors.
As the market evolves, these factors could continue to shape the attractiveness of Wollongong as a property investment destination. The recent rise in rental yields is a sign of changing tides, potentially driven by economic shifts or local market changes.
Sources: Investorkit, OpenAgent
4) Ocean-view properties in Wollongong are priced 25% higher than similar inland properties
In Wollongong, properties with ocean views are priced 25% higher than similar inland properties.
Over the past decade, Wollongong's median house prices have surged, now hovering around $1.1 million. This increase is fueled by people craving a sea change and investors eyeing valuable assets. Ocean view properties are especially appealing, naturally driving up their prices.
Luxury ocean view homes are hot commodities in Wollongong, reflecting their high demand. The charm of living by the ocean, with its breathtaking views and lifestyle perks, makes these homes more desirable and, consequently, more expensive.
Market analysis reveals that coastal towns in New South Wales, including Wollongong, are under high market pressure and experiencing price growth. An influx of buyers from major cities, drawn to the coastal lifestyle, is further boosting the demand and value of ocean view properties.
In these coastal areas, the allure of ocean views is undeniable. Buyers are willing to pay a premium for the stunning vistas and the unique lifestyle that comes with living by the sea.
As more people seek the tranquility and beauty of coastal living, the demand for ocean view properties continues to rise, making them a valuable investment in Wollongong's real estate market.
Sources: Smart Property Investment, James Edition
5) Properties in Wollongong spend an average of 28 days on the market, showing strong buyer interest
The average time a property spends on the market in Wollongong is 28 days, indicating strong buyer interest.
In Wollongong, the inventory level has consistently stayed below 3 months of stock over the past year. This low supply means buyers are competing fiercely, which speeds up sales. When homes are scarce, they tend to sell faster, and that's exactly what's happening here.
Even though the average time on the market has slightly increased over the years, it has now stabilized at around 55 days. Compared to other regions, this is still quite short, showing that demand is robust. Buyers are willing to pay more, as seen in the moderate price growth, likely due to the limited number of homes available.
The rental market in Wollongong is also feeling the heat, with vacancy rates dipping below 1% and a notable 7.4% rental growth in just a year. This pressure might be nudging renters to consider buying, further boosting property demand.
All these elements together create a scenario where properties are likely to sell quickly, reflecting strong buyer interest. The combination of low inventory, stable market times, and rental pressures paints a clear picture of why homes are moving fast.
Sources: Investorkit
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6) Wollongong's housing turnover rate was about 4% in 2024, indicating moderate market activity
The city’s housing turnover rate was approximately 4% in 2024, reflecting moderate market activity.
In Wollongong, the property market saw a 6.4% increase in house prices over the past year, indicating a stable environment. This aligns with the moderate turnover rate, suggesting a balanced market. The inventory level was notably low, with less than three months of stock available, pointing to a healthy balance between supply and demand.
The rental market in Wollongong was under significant pressure, with vacancy rates dropping to under 1%. This tight rental market saw a 7.4% growth in rental prices over the year, highlighting strong demand for housing. Such dynamics can contribute to the moderate activity observed in the housing market.
Demographic trends also played a role, with Wollongong's population growth recovering post-COVID, primarily due to overseas migration. However, internal migration was on the decline, largely because of poor housing affordability, which can impact housing demand and turnover rates.
Sources: InvestorKit's Market Pressure Review, Illawarra Mercury
7) Wollongong’s population growth of 1.2% in 2024 is sustaining housing demand
Wollongong's population saw a 1.2% increase in 2024, fueling a robust housing demand.
As a charming coastal city, Wollongong offers a high quality of life, drawing more people to settle there. This influx has put the rental market under pressure, with vacancy rates plummeting below 1%. Consequently, rental prices have surged by 7.4% in just one year, highlighting the strong demand for housing.
Looking ahead, Wollongong's property market is poised for healthy growth over the next 6-12 months. The current low supply levels, when compared to demand, are a key factor. Additionally, potential rate cuts could make housing more affordable, further boosting the demand for homes.
For those considering buying property, these trends suggest a promising investment opportunity. The city's appeal and the ongoing demand for housing create a dynamic market environment. As more people are drawn to Wollongong, the need for both rental and owned properties continues to rise.
With its coastal charm and vibrant community, Wollongong remains an attractive destination for new residents. The combination of lifestyle benefits and market dynamics makes it a compelling choice for property buyers. As the city grows, so does the potential for property value appreciation.
Sources: Forecast ID, Investorkit, World Population Review
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.
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