Looking to invest in Wollongong, the Illawarra or the NSW South Coast?

This scenic region continues to attract sea-changers, downsizers and investors alike — offering a mix of small city living, coastal charm, and relative affordability compared to Sydney. From the relaxed lifestyle of ‘The Gong’ to the quiet beaches and charming towns further south, it remains one of NSW’s most desirable coastal corridors.

In this article, we explore how the property markets in Wollongong, the Illawarra and the NSW South Coast performed in 2025 and what’s expected for 2026.

How did the Wollongong, Illawarra, and South Coast property markets perform in 2025?

The Wollongong, Illawarra, and South Coast property markets spent 2025 solidifying their status as high-growth alternatives to Sydney, delivering a resilient performance throughout the year. According to Cotality, dwelling values across the Illawarra region climbed by approximately +5.0 per cent in the 12 months to October 2025. This steady growth was punctuated by a sharp acceleration in the final quarter, where values rose by +2.4 per cent in just three months, marking the strongest quarterly gain since April 2024.

By late 2025, the median house price in Wollongong had reached approximately $1.26 million, driven by renewed buyer confidence following interest rate cuts earlier in the year. The ripple effect was evident as priced-out Sydney buyers targeted premium suburbs like Coledale and growth corridors around Port Kembla and Warrawong. Further south, markets in the Shoalhaven and Eurobodalla stabilised, transitioning from frenetic lifestyle demand to a more sustainable flight to value.

Supply constraints played a critical role in supporting prices, with total listings falling by roughly 14.0 per cent year-on-year. This scarcity created a competitive environment, particularly in the sub-$1.5 million bracket, which was further energised by the expansion of the First Home Guarantee scheme in October.

The rental market remained critically tight, with vacancy rates in Wollongong hovering between 0.6 per cent and 0.8 per cent. This shortage drove asking rents up by nearly 10.0 per cent over the year, attracting yield-conscious investors back to the market. Eliza Owen, Head of Research at Cotality, highlighted the significance of the late-year surge, noting, "That's significant because it's the highest three-month growth rate seen in the market since April [last year]."

Wollongong, Illawarra and South Coast property market forecast and price predictions 2026

National property values are projected to reach new record highs in 2026 as lower interest rates continue to support buyer demand, and the Wollongong, Illawarra, and South Coast markets are expected to see a 'two-speed' recovery. 

In the north, Wollongong and Shellharbour are witnessing a distinct shift where units are outperforming houses. With median house prices in Kiama and Wollongong pushing $1.2 to $1.5 million, buyers are aggressively targeting apartments and townhouses, driving unit growth of up to 22 per cent in some pockets. Analysts like Terry Ryder and Bamboo Routes predict steady overall growth of 3 to 7 per cent, underpinned by a diverse economy no longer reliant solely on steel or tourism.

Further south in the Shoalhaven and Eurobodalla, the outlook is for stability rather than a boom. After a period of correction, markets like Nowra and Batemans Bay are settling into a sustainable rhythm. Rethink Group identifies the Shoalhaven as a key growth corridor for 2026, driven by infrastructure spending and a return of investors seeking yields of 4 to 5 per cent. However, InvestorKit warns that affordability remains a "hard ceiling" for local buyers, meaning future price rises will likely be capped by borrowing capacity until interest rates fall further.

A wildcard for 2026 is the 'commuter factor.' With hybrid work models solidifying, suburbs like Calderwood and Narara (Central Coast) are emerging as hotspots for young families priced out of Sydney but still needing occasional office access. This demographic shift is keeping a floor under prices in the "commutable coast" zone, while the further-flung South Coast markets rely more heavily on retirees and local employment. Ultimately, most predictions point to a year of solid, sustainable gains fueled by a structural shortage of housing that new construction targets are unlikely to resolve in the short term.

What are the best suburbs to invest in Wollongong, Illawarra and the South Coast in 2026?

We've put together a list of ten of Wollongong, the Illawarra, and the NSW South Coast's top investment suburbs for 2026, according to OpenAgent analysis of short-term and long-term growth patterns, listing activity, selling speed and rental yields. 

Kiama, NSW 2533

Kiama’s unit market has hit a median price of $1,000,000, recording strong annual growth of +14.2 per cent. Over five years, values have climbed +61.3 per cent, reflecting the town's enduring appeal as a premier seaside destination. The rental yield sits at 2.8 per cent with a median weekly rent of $570, supported by demand for coastal living near the famous Blowhole and harbour. Its direct train link to Sydney and Wollongong makes it a viable option for commuters seeking a relaxed lifestyle. The limited supply of apartments in the village centre keeps buyer competition high.

Callala Beach, NSW 2540

Callala Beach offers an exclusive Jervis Bay lifestyle with a median house price of $1,250,000. It has achieved +13.6 per cent growth in the past year and a massive +85.2 per cent over five years, driven by demand for holiday homes and sea-change retreats. The suburb is renowned for its pristine white sands and calm waters, attracting buyers looking for a quiet escape. With properties spending a median of 43 days on the market, demand remains steady for this secluded coastal pocket. It stands out as a high-growth location for those prioritising natural beauty and capital appreciation.

Corrimal, NSW 2518

Corrimal provides a high-growth unit market in Wollongong’s northern suburbs with a median price of $785,000. The market surged +16.3 per cent over the last 12 months, supported by excellent local amenities including major supermarkets and schools. Investors benefit from a rental yield of 3.8 per cent and a median weekly rent of $498. The suburb sits comfortably between the Illawarra Escarpment and the beach, offering a balanced lifestyle for tenants. Its five-year growth of +47.4 per cent highlights its transition into a key residential hub.

Mittagong, NSW 2575

Mittagong serves as the gateway to the Southern Highlands, commanding a median house price of $1,135,000. It has recorded exceptional annual growth of +18.8 per cent, driven by tree-changers and commuters accessing Greater Sydney via the Hume Motorway. The town offers a vibrant mix of antique shops, wineries, and schools, supporting a median rent of $650 per week. With +56.6 per cent growth over five years, it has firmly established itself as a prestige regional market. The rental yield of 3.4 per cent is underpinned by steady demand from families and professionals.

Warilla, NSW 2528

Warilla offers coastal value near Shellharbour with a median house price of $849,000. The market grew +9.1 per cent in the last year, building on a strong five-year trajectory of +75.1 per cent. It is popular with families and renters due to its proximity to Warilla Beach and the local Grove shopping centre. Investors see a rental yield of 3.5 per cent with a median weekly rent of $600. Its affordability relative to suburbs further north makes it a practical entry point for coastal property.

North Wollongong, NSW 2500

North Wollongong is a premier lifestyle precinct with a median unit price of $725,000. It recorded +15.2 per cent annual growth, fueled by its unbeatable location near North Beach and the University of Wollongong. The suburb offers a strong rental yield of 4.6 per cent, making it highly attractive to investors targeting student and professional tenants. With a median rent of $550 per week, it ensures consistent income. The cafe culture and coastal promenade keep vacancy rates low and demand high.

Oak Flats, NSW 2529

Oak Flats offers a convenient lakeside lifestyle with a median unit price of $820,000. It has achieved +9.3 per cent growth over the past year and +56.2 per cent over five years, reflecting its growing popularity. The suburb is well-connected by rail and sits on the shores of Lake Illawarra, appealing to water lovers and commuters alike. Investors can expect a rental yield of 3.4 per cent and a median weekly rent of $490. Its central position near Shellharbour City Centre adds to its practicality.

Wilton, NSW 2571

Wilton is a rapidly expanding growth corridor with a median house price of $1,280,000. The market surged +16.4 per cent in the last 12 months, driven by major infrastructure investment and new master-planned communities. It offers a semi-rural setting with easy access to the Picton Road and Hume Highway, attracting families needing space. With a median rent of $750 per week and a yield of 3.5 per cent, it provides strong returns for modern housing stock. The five-year growth of +50.6 per cent highlights the area's transformation.

Balgownie, NSW 2519

Balgownie is a prestigious village suburb nestled at the foothills of the escarpment, with a median unit price of $1,020,000. It recorded +8.5 per cent growth in the past year, supported by its reputation for community and heritage charm. Properties sell quickly here, with a median time on market of just 23 days, indicating strong buyer competition. The suburb is famous for its historic pub and village shopping strip, drawing downsizers and professionals. Its five-year growth of +44.3 per cent reflects the enduring value of this leafy enclave.

Culburra Beach, NSW 2540

Culburra Beach offers a relaxed coastal escape with a median house price of $984,500. While annual growth was steady at +5.7 per cent, the suburb has delivered +72.3 per cent growth over five years. It is surrounded by the ocean, lake, and river, making it a paradise for anglers and surfers. Investors see a rental yield of 3.0 per cent with a median weekly rent of $550. Its laid-back atmosphere and proximity to Nowra services make it a practical choice for lifestyle buyers.

Disclaimer: Rankings use OpenAgent’s internal weighted scoring of price growth, days on market, listings and indicative yield. General information only—not financial advice; figures are estimates; past performance is not reliable. Always seek independent advice.