Wollongong Real Estate Market Update - 2025

As we embark on 2025, the Wollongong real estate market captivates both investors and homebuyers. This vibrant coastal city, just south of Sydney, offers an intriguing blend of lifestyle choices and property possibilities.

In this post, we'll examine current trends, challenges, and predictions for the Wollongong property landscape. We will also provide practical insights for potential buyers and investors.

Current Market Overview

Wollongong's real estate market has experienced notable growth recently. After the pandemic, there was a significant shift in buyer interest toward regional areas, and Wollongong reaped the benefits. The demand for properties has skyrocketed, leading to substantial price increases across various segments.

In early 2025, median house prices in Wollongong reached $1.26mil, with suburbs like Coledale and Wombarra driving this trend. For context, this represents a 6% increase from the previous year. Factors contributing to this increase include steady interest rates, a growing population, and a strong local economy.

While market analysts predict continued growth, they suggest a moderated pace. With the high cost of living, buyers and investors must stay informed about changing economic conditions.

Top & Worst Performing Suburbs in Wollongong LGA

Top 5 best performing suburbs in the last 12 months (houses - median price):

• Fairy Meadow +7.78%

• Wongawilli +6.99%

• Koonawarra +6.31%

• Coledale +6.12%

• Unanderra +5.99%

Top 5 best performing suburbs in the last 12 months (units - median price):

• North Wollongong +2.67%

• Thirroul +2.56%

• Corrimal +2.53%

• Woonona +2.25%

• Mangerton +2.25%

Top 5 worst performing suburbs in the last 12 months (houses - median price):

• Bulli +1.33%

• Austinmer +2.83%

• Thirroul +2.97%

• Windang +3.25%

• Avondale +3.46%

Top 5 worst performing suburbs in the last 12 months (units - median price):

• Fairy Meadow -3.21%

• West Wollongong -3.06%

• Bellambi -1.60%

• Helensburgh -1.10%

• Coniston -0.45%

Demand Trends

The demand for Wollongong real estate can be categorised into two main groups: residential and investment buyers. Recent statistics show that first-home buyers now represent 35% of the market. This rise is partly due to government incentives designed to make homeownership more attainable.

Simultaneously, investors are keen on the rental market, fuelled by an increase in the student population and professionals relocating for work. In 2024, rental prices in Wollongong rose by 10%, highlighting the competitive nature of rental properties in the area. This duality of demand indicates a diverse range of opportunities within the Wollongong market.

Property Types on the Rise

In 2025, specific property types are gaining traction in Wollongong. Detached houses still dominate the market; however, there is a noticeable uptick in the demand for apartments and townhouses due to affordability. This shift reflects changing buyer preferences for low-maintenance, urban living options, particularly among younger buyers and empty nesters.

Developers are responding to this trend, launching numerous projects in areas close to amenities and transport links. Properties with easy access to shops, schools, and the stunning coastline are highly sought after, showcasing Wollongong as a desirable lifestyle destination. According to local surveys, around 60% of buyers prioritise proximity to amenities when searching for a home.

Future Predictions

Looking ahead, several key predictions can be made about the Wollongong real estate landscape. Firstly, market growth is likely to persist, albeit at a steadier rate. Buyers should monitor interest rates, as fluctuations could significantly impact their purchasing power.

Sustainability is expected to play a critical role in future property development. With increased environmental awareness, properties featuring energy-efficient designs and eco-friendly features will be in higher demand. Research indicates that 75% of buyers are willing to pay more for sustainable features in their homes.

Additionally, the continuation of remote work will likely alter buyer habits. More individuals can work flexibly, leading to increased interest in regions like Wollongong for those seeking a balanced lifestyle away from busy city centres.

Challenges Facing the Market

Despite positive trends, the Wollongong real estate market faces challenges. A primary concern is housing affordability. First-home buyers may increasingly struggle to enter the market as prices continue to rise.

Moreover, low inventory levels have intensified competition for available properties. According to recent data, the average time for properties on the market decreased to just 21 days. Buyers should be prepared for a fast-paced purchasing environment.

It is also essential to consider macroeconomic factors, such as employment rates and overall economic stability. These factors could impact buyer confidence and alter market dynamics.

Essential Advice for Buyers

For anyone looking to invest or settle in Wollongong, understanding the market is crucial. Here are some practical tips to help navigate this evolving landscape:

• Engage a Buyer’s Agent: Working with a buyer’s agent can provide crucial insights and access to off-market properties, simplifying your purchasing journey.

• Conduct Thorough Research: Keep informed about local market trends, property values, and upcoming developments to make educated decisions.

  
  

By exploring various financing options and understanding your long-term goals, you can navigate the competitive landscape more effectively.

The Future of Wollongong Real Estate

The Wollongong real estate market in 2025 presents numerous opportunities amidst its coastal charm. As buyers and investors explore this dynamic landscape, understanding current trends, challenges, and future predictions will be vital.

By staying informed and adopting strategic approaches, interested parties can maximise their potential in the Wollongong property market. Explore the future of real estate in this thriving location and uncover the potential that Wollongong has to offer.

Whether you are planning to purchase your first home, expand your investment portfolio, or simply keep updated on market developments, Wollongong is a destination worth considering.

If you're looking for a buyer’s agent or qualified property investment adviser (QPIA®) to assist you with purchasing a home or investment property in NSW, QLD, VIC, SA or WA, please get in touch with our team at Ready Set Buy - Property Buyer's Agents or give us a call on 1300 289 372!

Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.