Wollongong NSW Property Investment

Wollongong has compounded at 9.1%/yr over 5 years — a house that cost $794,578 in 2021 is worth $1,228,175 today. Properties are sitting on market for 56 days (buyers have negotiating room). At the same growth rate, today's median reaches $1,898,384 by 2031.

• Median house: $1,228,175 | Units: $830,458
• Gross yield: 3.2% | Net yield: 1.7%
• 5yr price CAGR: 9.1%/yr | 3yr forecast: 13.5%/yr
• Population: 20,446 | Owner-occupier rate: 49% | Affluence: High

• Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

• Vacancy: 1.7% (improving) | Rental demand: High
• Median weekly rent: $750/wk | Days on market: 56 (worsening)
• Landlord market — rents likely to keep rising.

• Median nightly rate: $200/night | Occupancy: 68%
• Estimated annual STR gross: ~$49,640/yr
• vs long-term rent: $39,000/yr (+27% STR premium — factor in higher management costs)

• No major confirmed infrastructure projects on record.
• Transport: Standard suburban transport access

If Wollongong maintains 3%+ annual growth and vacancy stays below 1.2%, median prices could reach $1,412,401 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Wollongong pull back 10-15% from $1,228,175, with vacancy rising to 3.1% and rental yields softening as tenants gain leverage.

• Distance from CBD may limit long-term capital growth potential

• Lake Illawarra (NSW): $982,570 median, 3.4% yield, 10.6% 1yr growth
• Blackett (NSW): $920,447 median, 2.9% yield, 9.7% 1yr growth
• Macquarie Fields (NSW): $1,027,033 median, 3.1% yield, 7.6% 1yr growth

Wollongong presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 3.2% and prioritise properties with value-add potential. Consider timing entry around the current stable phase of the market cycle.

• Entry range: $1,105,358 – $1,350,992
• Minimum gross yield to target: 4.5%
• Watch signal: vacancy staying below 2% and days on market falling below 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.