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.
For investors comparing growth suburbs, rental yields, and long-term portfolio potential, working with an investment property buyers agent can help bring more structure to the buying process.
What Is the Real Estate Potential for Wollongong and 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 and the Illawarra Region
Why invest in Dapto?
Dapto is an inland suburb located 14km from the centre of Wollongong, and 94km 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.
For investors focused on buyers agent for portfolio building, Dapto may appeal because of its relative affordability, family demand, transport access, and mix of house and unit opportunities.
- Median house price: $791,000 (+7.6% on November 2023)
- Median unit price: $660,000 (+3.1% on November 2023)
- Median house weekly rent: $570
- Median unit weekly rent: $480
- House rental yield: 3.9%
- Unit rental yield: 4.0%
Why invest in 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 house weekly rent: $650
- Median unit weekly rent: $420
- House rental yield: 2.9%
- Unit rental yield: 3.5%
Why invest in 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.
A strategic buyers agent can help investors assess whether a suburb like West Wollongong offers the right balance of tenant demand, amenities, yield, and long-term capital growth potential.
- Median house price: $1,027,120 (+4.5% on November 2023)
- Median unit price: $601,500 (+9.4% on November 2023)
- Median house weekly rent: $680
- Median unit weekly rent: $450
- House rental yield: 3.5%
- Unit rental yield: 4.5%
Why invest in 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, according to the 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 house weekly rent: $700
- Median unit weekly rent: $600
- House rental yield: 2.4%
- Unit rental yield: 3.6%
Why invest in Lake Illawarra?
Lake Illawarra is a suburb of the City of Shellharbour, 10km 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 house weekly rent: $590
- Median unit weekly rent: $540
- House rental yield: 3.1%
- Unit rental yield: 3.3%
How Should Investors Choose the Right Wollongong or Illawarra Suburb?
Wollongong and the Illawarra region offer a range of investment opportunities, from developing inland suburbs like Dapto to coastal lifestyle markets like Kiama and Lake Illawarra.
The right suburb will depend on your budget, borrowing capacity, rental income goals, risk appetite, and long-term strategy. Working with an investment property buyers agent can help investors compare these opportunities more clearly and choose a property that supports their broader portfolio goals.
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