Illawarra house and unit prices keep climbing as listings tighten across Wollongong, Shellharbour and Kiama

Prices extend their upswing as competition concentrates on limited stock

House and unit prices in the Illawarra have continued rising, with recent market indicators pointing to firm demand despite affordability pressures. The pattern has been most evident across Wollongong, Shellharbour and Kiama, where overall stock for sale has remained below year-ago levels and buyer activity has persisted through the traditional late-year slowdown.

Regional dwelling values recorded a monthly lift in September 2025 and strengthened further across the following quarter, supported by fewer properties being advertised for sale. Over the same period, advertised rental availability also tightened, adding pressure to households weighing buying versus renting.

Supply constraints remain central to the market’s direction

Market snapshots through late 2025 show total listings across Wollongong, Shellharbour and Kiama sitting around the mid-1,300s, about 14 per cent lower than a year earlier. With fewer options available, well-presented and appropriately priced properties have tended to attract stronger competition, while listings perceived as overpriced have taken longer to transact or shifted to negotiation after initial campaigns.

• Listing volumes have remained below last year’s levels, limiting buyer choice.
• Clearance rates have hovered around the middle range as auction volumes eased into the holiday period.
• Houses have generally recorded stronger annual growth than units across 2025, reflecting demand for larger dwellings.

Houses and units: both rising, but not evenly across suburbs

While the overall direction has been upward, results across the Illawarra have varied by locality. Suburbs with stronger rail connectivity and commuting access have been among the stronger performers over the past year, while some southern-coast areas have recorded comparatively softer growth.

Across the region, price gains have been strongest where supply is most constrained and demand is supported by commuting access and established amenities.

Policy settings and buyer composition add to competition

From 1 October 2025, a nationwide expansion of a federal home-loan guarantee arrangement enabled eligible first-home buyers to purchase with as little as a 5 per cent deposit, with broader access settings than previous versions. The change has coincided with heightened competition in some market segments, particularly where buyers are targeting relatively lower-priced suburbs within commuting distance of Sydney.

In practical terms, the Illawarra’s price momentum has been shaped by three intersecting forces: a shortage of advertised stock, a constrained rental market, and policy changes that can bring additional first-home buyers into the purchase pipeline. With these conditions in place, the balance between supply and demand remains a key determinant of whether price growth moderates or persists into 2026.