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Wollongong's property market offers compelling opportunities for both investors and homebuyers in 2025. With median house prices at $1.26 million and apartments averaging $690,000-$750,000, the market shows steady 6-7% annual growth despite having experienced dramatic 53% gains over five years. The rental market is extremely tight with vacancy rates under 1%, creating strong yields of 4.1-4.5% for apartments and 3.3% for houses.
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Wollongong's property market in September 2025 presents a mature yet growing investment landscape with strong fundamentals.
The city offers excellent rental yields, particularly for apartments near the university and CBD, while facing an upcoming apartment supply surge from 2026.
| Property Type | Median Price (2025) | Annual Growth | Rental Yield | Entry Point |
|---|---|---|---|---|
| Detached Houses | $1.26M | 6% | 3.3-3.8% | $795k (outer suburbs) |
| Apartments | $690k-$750k | 7.4% | 4.1-4.5% | $547k (older stock) |
| Townhouses | $800k-$1.2M | 5-8% | ~4.0% | $800k+ |
| Vacancy Rate | Below 1% citywide | Extremely tight market | ||
| New Supply Forecast | 840 apartments in 2026 | 765 per year through 2028 | ||
| Infrastructure Investment | $97M+ in 2024 | Transport & waterfront upgrades | ||
| Best Growth Suburbs | Dapto, Warrawong, Kiama | Fastest recent appreciation | ||
What's the current average property price in Wollongong, and how has it changed over the past 12 months?
As of September 2025, Wollongong's median property prices show strong but moderate growth across all segments.
Detached houses in Wollongong have reached a median price of $1.26 million, representing a solid 6% increase over the past 12 months. This growth rate reflects the market's maturation after several years of rapid expansion.
Apartments have performed even better, with median prices ranging from $690,000 to $750,000, showing a 7.4% annual increase. This stronger apartment performance indicates continued demand for more affordable entry points into the Wollongong market.
Townhouses occupy the middle ground with prices ranging from $800,000 to $1.2 million, experiencing growth rates between 5-8% annually. The fastest growth in this segment has occurred in outer suburbs like Dapto, where affordability meets accessibility.
These current growth rates represent a significant moderation from the explosive gains of recent years, suggesting the market is finding a more sustainable pace while still delivering solid returns for property owners.
How do short-term price trends compare to the last five years in Wollongong?
Wollongong's property market has experienced dramatically different growth phases when comparing recent trends to the five-year trajectory.
The five-year growth story has been remarkable, with property prices increasing by 53% from approximately $822,000 in 2019/20 to current levels of $1.26 million for houses. This represents one of the strongest sustained growth periods in Wollongong's property market history.
The current short-term trend of 6-7% annual growth appears modest compared to this five-year surge, but it actually indicates a healthier, more sustainable market. The dramatic five-year gains were driven by pandemic-related factors, low interest rates, and lifestyle migration patterns that created exceptional conditions.
Today's growth rates suggest the market has found its footing after this extraordinary period. The continued upward trajectory, albeit at a more measured pace, demonstrates underlying strength in employment, population growth, and lifestyle appeal that supports ongoing price appreciation.
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What are the rental yields across different suburbs in Wollongong right now?
Wollongong's rental yields vary significantly by location and property type, with some suburbs offering particularly attractive returns for investors.
| Suburb | Property Focus | Rental Yield Range |
|---|---|---|
| West Wollongong | Units near amenities | 4.5% |
| North Wollongong | Student accommodation | 4.0-4.5% |
| Dapto | Mixed housing types | 4.0% |
| Port Kembla | Worker accommodation | 3.5% |
| CBD | Professional rentals | 4.0-4.2% |
| Beachside areas | Lifestyle properties | 3.0-3.5% |
| Keiraville/Figtree | Family/professional mix | 3.8-4.0% |
How do rental yields vary between apartments, townhouses, and detached houses?
Property type significantly influences rental yield potential in Wollongong's current market.
Apartments consistently deliver the highest rental yields, averaging between 4.1% and 4.5% across the city. This strong performance reflects their lower purchase prices combined with steady rental demand from students, young professionals, and downsizers.
Detached houses typically generate lower yields of 3.3% to 3.8%, with the higher end of this range found in outer growth suburbs. The lower yield reflects their higher purchase prices, though they often provide better long-term capital growth potential.
Townhouses sit in the middle ground with yields around 4.0%, offering a balance between the income generation of apartments and the growth potential of houses. They're particularly popular with families seeking more space than apartments but at lower costs than detached homes.
Student accommodation properties can achieve even higher yields of 4.5% to 5% gross, particularly near the University of Wollongong campus, though these require specialized management and leasing structures.
What are the vacancy rates in Wollongong, and how do they differ by area?
Wollongong's rental market is experiencing historically tight conditions across virtually all areas.
The city-wide vacancy rate sits below 1%, creating an extremely competitive rental market that strongly favors landlords. This exceptionally low vacancy rate indicates that rental properties typically lease within days rather than weeks.
The tightest rental conditions exist in student and professional precincts, particularly North Wollongong near the university and the CBD area. These zones often see vacancy rates close to zero, with properties being snapped up immediately upon listing.
Even the broader Illawarra region shows similar conditions with vacancy rates around 1.1%, confirming that the tight rental market extends beyond Wollongong's immediate boundaries. This regional shortage creates opportunities for investors but challenges for tenants.
The ultra-low vacancy rates reflect strong population growth, limited new rental stock coming to market, and the city's appeal to both students and professionals working in the expanding healthcare and education sectors.
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Which Wollongong suburbs are showing the strongest short-term growth potential?
Several Wollongong suburbs stand out for their exceptional short-term growth prospects based on current market dynamics.
- Dapto leads the growth charge with the fastest recent price appreciation, driven by its affordability advantage and improving infrastructure connections to central Wollongong
- Warrawong is experiencing gentrification effects with younger buyers attracted to its value proposition and proximity to employment centers
- Kiama benefits from premium lifestyle appeal and limited housing supply, creating strong upward pressure on prices
- Fairy Meadow offers the perfect balance of central location and family-friendly amenities, driving consistent buyer demand
- Wongawilli captures the rural lifestyle trend while maintaining reasonable commuting distance to Wollongong's employment centers
Which areas look more stable for medium- to long-term capital growth?
Wollongong's most stable long-term growth prospects center on areas with established infrastructure and consistent demand drivers.
University and hospital precincts including Keiraville, North Wollongong, and Figtree offer exceptional stability due to their proximity to major employment anchors. These areas benefit from consistent demand from medical professionals, academics, and students who create steady rental and ownership markets.
The CBD and surrounding inner suburbs provide long-term stability through their access to employment, transport links, and urban amenities. These areas typically weather market downturns better than outer suburbs while participating fully in growth cycles.
Premium coastal suburbs like Coledale and Wombarra represent blue-chip holdings with limited supply and strong lifestyle appeal. While they may have lower rental yields, their scarcity value and desirability provide excellent long-term capital protection and growth.
Inner-ring family suburbs that balance affordability with amenity access, such as Mount Ousley and Figtree, offer consistent performance due to their appeal to established families and professionals seeking quality of life.
It's something we develop in our Australia property pack.
What is the forecast for new housing supply in Wollongong, and how could it affect prices?
Wollongong faces a significant apartment supply surge that will reshape the market from 2026 onwards.
The city is forecast to see 840 new apartments completed in 2026, followed by approximately 765 apartments annually through 2028. This represents a substantial increase in housing stock that will primarily impact the apartment market segment.
Much of this new supply stems from NSW government policy reforms, including the In-fill Affordable Housing Scheme and Transit-Oriented Development programs. These policy changes have accelerated development applications and approvals, creating the pipeline for increased construction.
However, developer challenges including high construction costs and relatively low unit sale prices may moderate the actual delivery timeline. Some projects may be delayed or scaled back if market conditions don't support profitable development.
The supply increase will likely create more choice for apartment buyers and potentially moderate price growth in this segment, while having minimal impact on the detached house market where supply remains constrained.
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What are the main infrastructure or development projects planned in Wollongong that could impact property values?
Wollongong is experiencing substantial infrastructure investment that will drive property value growth across multiple areas.
The city allocated over $97 million for infrastructure projects in 2024, focusing on transport upgrades, flood management systems, and waterfront redevelopment initiatives. These investments directly boost property values in previously underdeveloped areas.
Transport infrastructure improvements are enhancing connectivity between outer suburbs and employment centers, making areas like Dapto and Warrawong more attractive to commuters and families. Better transport links typically translate to property value increases as accessibility improves.
Waterfront redevelopment projects, particularly around Lake Illawarra and central Wollongong's harbor precincts, are creating new lifestyle and entertainment districts. These developments make surrounding residential areas more desirable and valuable.
Flood management infrastructure provides long-term property protection and insurability improvements, particularly important for low-lying areas that have previously faced development constraints. This infrastructure removes barriers to investment and development in affected areas.
At what budget levels can you enter the Wollongong market for different property types?
Wollongong's property market offers entry points across various budget levels, though affordability has become increasingly challenging.
| Property Type | Minimum Entry | Median Range | Premium Level |
|---|---|---|---|
| Apartments (older stock) | $547,000 | $690,000-$750,000 | $900,000+ |
| Apartments (new/renovated) | $690,000 | $750,000-$850,000 | $1,000,000+ |
| Townhouses | $800,000 | $900,000-$1,200,000 | $1,500,000+ |
| Houses (outer suburbs) | $795,000 | $950,000-$1,200,000 | $1,500,000+ |
| Houses (established areas) | $1,100,000 | $1,260,000-$1,500,000 | $1,800,000+ |
| Coastal premium properties | $1,800,000 | $2,000,000-$3,000,000 | $5,000,000+ |
If you're buying to live in, which areas balance affordability, lifestyle, and future growth?
Several Wollongong areas provide excellent balance for owner-occupiers seeking long-term lifestyle and investment benefits.
Inner suburbs including the CBD, Fairy Meadow, and North Wollongong offer the best lifestyle balance with access to employment, education, healthcare facilities, and entertainment options. These areas typically maintain strong capital growth while providing excellent amenity access for families.
Outer family suburbs like Dapto and Wongawilli provide greater affordability while still offering good access to schools, shopping, and recreational facilities. These areas particularly suit families seeking more space and value for money while accepting slightly longer commutes.
Beachside communities including Coledale and Kiama offer premium lifestyle benefits with strong long-term capital growth potential. While less affordable initially, these areas provide exceptional quality of life and tend to hold their value through various market cycles.
Areas near the university and hospital, such as Keiraville and Mount Ousley, offer stable lifestyle benefits with consistent demand from professionals and academics. These suburbs typically provide good schools, established infrastructure, and reliable capital growth.
The key for owner-occupiers is matching personal lifestyle priorities with budget constraints while ensuring the chosen area has multiple demand drivers that support long-term value retention.
If you're buying to rent out or resell, which property types and locations position you best right now?
Investors should focus on property types and locations that maximize both rental returns and capital growth potential in Wollongong's current market.
Units near the university, hospital, and CBD offer the highest rental yields at 4.2% to 4.5%, with consistent tenant demand and rapid leasing. These properties typically experience low vacancy periods and strong rental growth due to employment and education demand drivers.
Houses and townhouses in outer growth suburbs like Dapto and Warrawong provide higher absolute rental yields of 3.8% to 4.0% while offering significant capital growth upside as these areas continue to gentrify and improve their infrastructure connections.
Premium lifestyle areas including beachside suburbs offer more stable long-term value appreciation with lower rental yields but reduced investment risk. These properties suit investors seeking blue-chip assets with lower turnover and maintenance requirements.
For resale potential, properties in areas experiencing infrastructure upgrades or development activity typically offer the best short-term appreciation prospects. The upcoming apartment supply surge may create opportunities for house and townhouse investors as buyer preference potentially shifts toward these property types.
It's something we develop in our Australia property pack.
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 in September 2025 presents compelling opportunities for both investors and owner-occupiers, despite the challenges of high entry prices and tight rental conditions.
The upcoming apartment supply surge from 2026 will likely moderate apartment price growth while creating new opportunities in the rental market, making strategic property selection more important than ever for long-term success.
Sources
- Wollongong Price Forecasts - BambooRoutes
- Average House Price Wollongong - BambooRoutes
- Market Pressure Review Wollongong - InvestorKit
- SQM Research Property Prices Wollongong
- Your Investment Property Magazine - Wollongong
- Wollongong Property Analysis - BambooRoutes
- Illawarra Buyers Agent - Rental Yields Guide
- Australian Property Professionals - Wollongong Investment Areas
- OpenAgent - Best Investment Areas Wollongong
- A+D - Wollongong Apartment Boom Analysis
-Complete Guide to the Property Buying Process in Wollongong
-How to Successfully Invest in Wollongong Property: Expert Strategies
-Should You Buy Property in Wollongong? Market Analysis and Decision Guide
-Wollongong Property Market Forecast: Future Trends and Projections
-Average Property Prices in Wollongong: Current Market Data
-Average Rental Prices in Wollongong: Complete Market Overview
-Average Rental Yields in Wollongong: Investor Returns Analysis