Sydney’s little sister of Wollongong and the greater Illawarra region in general have seen a surge in property prices since the global pandemic. Median house prices have increased each year an average of 8.9% since 2020. In 2025, the Illawarra region shows huge potential for investment as more of Sydney continues to flock south.
Real Estate Potential For Wollongong & Illawarra Markets
Median house prices in Wollongong and Illawarra increased by an average of 8.9% per annum over the past five years. Comparing to March 2020, median dwelling values in Wollongong have risen by ~$242,000. And as mentioned, ongoing development in transport and amenities across the Illawarra region, such as the upgrades to the South Coast Rail Line offer greater connectivity and convenience for residents. So, which suburbs are worth investing in?
In terms of where this growth is occurring, suburbs such as Lake Illawarra, and Kiama show exceptional growth in median property values. Let’s get into which suburbs specifically are ideal for 2025 property investors.
Best Investment Suburbs in Wollongong & the Illawarra Region
Dapto
Dapto is an inland suburb located 14km from the centre of Wollongong, and 94 km from Sydney City. One of Wollongong’s fastest developing areas, Dapto is rapidly expanding with new housing estates designed for young families and professionals. Dapto offers a tight-knit community with a variety of cafes and shops, as well as a main train line and bus routes that connect the suburb to the rest of Wollongong.
House prices in Dapto increased by 7.6% over the last 12-months, closing in on a median price of $800,000. Median unit prices are not far behind at $660,000 with a 3.1% increase over the last 12 months.
Median house price: $791,000 (+7.6% on November 2023)
Median unit price: $660,000 (+3.1% on November 2023)
Median weekly house rent: $570
Median weekly unit rent: $480
House rental yield: 3.9%
Unit rental yield: 4.0%
Port Kembla
South of Wollongong’s CBD, Port Kembla forms a major industrial port, and is the future home of a new hydrogen energy hub for the Wollongong and Illawarra region. Over the last year house prices have risen by 8.2%. As projects such as rail and freight improvements and waterfront redevelopment continue in Port Kembla, there is significant potential for investors to capitalise on the rising demand for housing in the area.
Median house price: $941,200 (+8.2% on November 2023)
Median unit price: $480,000 (No change since November 2023)
Median weekly house rent: $650
Median weekly unit rent: $420
House rental yield: 2.9%
Unit rental yield: 3.5%
West Wollongong
West Wollongong is home to a wealth of amenities like schools, parks, shopping centres, and the University of Wollongong. As of late 2024/early 2025, West Wollongong’s median property prices are $1,027,120 for houses and $601,500 for units.
Median house price: $1,027,120 (+4.5% on November 2023)
Median unit price: $601,500 (+9.4% on November 2023)
Median weekly house rent: $680
Median weekly unit rent: $450
House rental yield: 3.5%
Unit rental yield: 4.5%
Kiama
Kiama is a 20 minute drive from the centre of Wollongong. A popular tourist destination, Kiama is a coastline suburb home to some ~15,000 residents (2021 census). The suburb is best-known for the Kiama blowhole, the result of a collapsed volcanic vent. However, there’s more than a popular tourist hotspot – Kiama caters to locals with a range of shops, dining, parks, and (it almost goes without saying) beautiful beaches.
Median house prices in Kiama have risen by over 10% over the last year to the current value of $1,510,000.
Median house price: $1,510,000 (+10.4% on November 2023)
Median unit price: $900,000 (-1.6% on November 2023)
Median weekly house rent: $700
Median weekly unit rent: $600
House rental yield: 2.4%
Unit rental yield: 3.6%
Lake Illawarra
Lake Illawarra is a suburb of the City of Shellharbour, 10 km south of Wollongong. Bound by the lake and the east coast, Lake Illawarra has seen a 17% increase in median property prices over the last 12 months.
Median house price: $881,000 (+17.1% on November 2023)
Median unit price: $697,500 (+5.5% on November 2023)
Median weekly house rent: $590
Median weekly unit rent: $540
House rental yield: 3.1%
Unit rental yield: 3.3%
