If you ask South Coast locals, it’s no secret that the Illawarra region is undergoing a period of un-matched growth. Perhaps due to city-dwellers relocating with flexible work arrangements post-pandemic, or maybe because of the area’s relaxed coastal vibe, more and more Aussies are looking to call suburbs in the Illawarra home.
If you're considering Wollongong or the greater Illawarra for your next investment property venture, you’re in luck. We’ve done some of the leg work for you, compiling an Illawarra investment property profile using data from CoreLogic. This guide aims to provide you with valuable insights, ensuring you make informed decisions when considering investment opportunities in Wollongong and its surroundings.
Navigating the rental market
Understanding the economic climate is fundamentally important when making investment decisions. Our guide to the Illawarra property market will help you find the best suburbs to invest in and ensure you maximise the value of your property investments. We consider factors including 12-month increase in property value and 12-month increase in rental value to give you insights into the most-promising real estate conditions in the region.
Illawarra's property segment
The Illawarra region boasts a thriving real estate market surrounding Wollongong and the surrounding coastal community. A broad range of investments are available in the area. From quieter beachside towns to the busy CBD of Wollongong, the region may appeal to discerning investors seeking capital growth and rental income growth.
Largest increases in property value
Wollongong and the Illawarra region remain a prime destination for property investment. Local investment in community development, upskilling and partnerships showcase the region’s resilience and potential for continued growth. The Illawarra locales experiencing significant increases in property values last year were, as per CoreLogic's data:
- Mangerton: Experienced a notable 14.2% increase in median housing value, reaching $1,069,729.
- Lake Illawarra: Saw a 14% increase in housing value, with the median housing value here equal to $815,927.
- Menai and Heathcoate: Recorded a 12.9% rise to a median value of $954,561.
- Wollongong: Observed substantial growth of 8.7%, resulting in the median housing value climbing to $1,024,487.
- Balgownie: On the apartment front, produced a 7.7% increase in values. The median value here reached $849,049.
- Corrimal: Witnessed a 6.6% increase in unit values, to $685,664.
Highest gross rental yields
The stunning backdrop and vibrant urban life of the Illawarra has attracted many renters to the area in recent years. The Illawarra locales with the highest gross rental yields, offering high rental income potential, were:
- Austinmer: Saw a significant 7.7% increase in median housing rent value, reaching $973.
- Thirroul: Experienced a 7% increase, with the median weekly rent, reaching $945.
- Balgownie: Also noted a 7.7% uptick, with the median housing rent value reaching $625.
As you navigate the diverse opportunities in the property markets of The Illawarra, Newcastle Permanent is here to be your trusted companion. Our commitment is to provide you with the insights, expertise and lending solutions needed to make informed decisions when it comes to your next investment property.
Invest with confidence with Newcastle Permanent. Explore Wollongong and the Illawarra’s investment potential today.
Sources: