Best Investment Suburbs in the Illawarra for 2025

TL;DR

• The Illawarra remains one of NSW's strongest coastal investment regions thanks to low vacancy (under 1%), strong migration, and limited land supply.

• Top suburbs for 2025:

  • Corrimal — balanced demand, solid yields, walkable, stable long-term growth.

  • Albion Park & Calderwood — affordability, modern homes, strong family rental demand.

  • Port Kembla — gentrification, strong yields, coastal value.

• Bonus suburbs to watch: Woonona (premium family appeal) and Shell Cove (new builds and lifestyle).

• Investors should focus on vacancy rates, rental demand, infrastructure, and supply constraints.

• The Shoreline Agency can help investors assess opportunities and access off-market deals.

The Illawarra's Investment Appeal in 2025

The Illawarra continues to attract investors who want strong rental demand, lifestyle appeal, and long-term capital growth — all within one of NSW's most resilient coastal markets.

With a limited land supply, a strong employment base, and migration from Sydney still on the rise, demand for well-located properties remains consistently high.

In 2025, the region is benefiting from stabilising interest rates, intense rental pressure, and continued infrastructure investment.

Vacancy rates remain below 1% across Wollongong, Shellharbour and Kiama LGAs, placing upward pressure on rents and supporting favourable yields.

Whether you're a first-time investor or adding to an existing portfolio, understanding which suburbs offer the best combination of affordability, demand, and growth potential is essential.

Here are the top investment suburbs in the Illawarra for 2025 — backed by local insight, current Market data, and long-term fundamentals.

1. Corrimal – A Consistent Performer With Balanced Demand

Corrimal has long been one of the safest investment suburbs in the northern Illawarra, offering a mix of affordability, strong rental demand, transport connectivity, and steady long-term growth.

Market Snapshot (2025)

• Median house price: ~$1.05M

• Median unit price: ~$650K

• Rental vacancy rate: < 1%

• Typical yield:

  • Houses: 3.2–3.7%

  • Units: 4–4.7%

Why Corrimal Works for Investors

1. Transport & Convenience: Corrimall is one of the most walkable suburbs in northern Wollongong, with direct rail links to Sydney and the CB, as well asd quick access to the Northern Distributor.

2. Diverse Property Mix: The suburb's combination of freestanding homes, villas, townhouses, and low-rise units offers something for every investor strategy.

3. Rental Demand from Key Demographics

   • Health workers (close to Wollongong Hospital)

   • Students (near the University of Wollongong)

   • Young families priced out of Thirroul and Woonona

4. Ongoing Retail Growth. Upgrades to Corrimal Village and new dining options enhance its appeal for renters seeking convenience and a desirable lifestyle.

Local insight: R3 zoning around Corrimal's town centre continues to attract small-scale townhouse development, improving housing diversity and supporting long-term value growth.

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2. Albion Park & Calderwood – High Growth and Strong Yields

For investors seeking affordability and sustained demand from young families, Albion Park and Calderwood stand out as two of the Illawarra's fastest-growing investment pockets.

Market Snapshot (2025)

• Median house price:

  • Albion Park: ~$820K

  • Calderwood: ~$900K

• Rental vacancy rate: < 1%

• Typical yield: 3.8–4.5%

• Annual population growth: Among the highest in the Illawarra

Why These Suburbs Work for Investors

1. New Housing Stock: Modern homes and low-maintenance builds appeal to families and reduce repair costs — excellent for long-term rental stability.

2. Strong Rental Demand. Schools, sporting facilities, and the Shellharbour employment corridor (airport, retail centre, and industrial precincts) drive consistent rental enquiries.

3. Infrastructure Momentum: The Albion Park Bypass and broader Shellharbour upgrades have tightened connection to Wollongong and improved commuter flow.

4. Lifestyle Appeal for Families Parks, playgrounds, new estates, and modern streetscapes make these suburbs magnets for long-term tenants.

LocalInsightt: Rental demand for 3–4 bedroom homes in Calderwood is outpacing supply, with properties often securing tenants within 3–5 days of being listed.

3. Port Kembla – The Emerging Coastal Growth Story

Port Kembla continues to gain momentum as one of the region's most interesting emerging markets, offering affordability, a coastal lifestyle, and strong gentrification trends.

Market Snapshot (2025)

• Median house price: ~$880K

• Median unit price: ~$600K

• Rental yield:

  • Houses: 3.4–4%

  • Units: 4.5–5.2%

• Vacancy rate: < 1%

Why Investors Are Taking Notice

1. Gentrification Momentum: New cafés, creative businesses, and boutique retailers are reshaping the suburb — much like Thirroul did a decade ago.

2. Coastal Lifestyle at a Lower Price Point. Proximity to the beach, harbour, and cycleway offers strong appeal to renters who want coastal living without the premium of North Wollongong or Thirroul.

3. Industrial & Employment HubPort Kembla's industrial base and port activity generate ongoing demand from workers seeking nearby accommodation.

4. Renovation and Development Potential: Many older cottages and fibro homes offer strong uplift potential through cosmetic renovation or extension.

Local insight: Investors targeting Port Kembla often achieve stronger yields than those in northern suburbs, due to lower purchase prices and high demand for renters from both young professionals and blue-collar industries.

Bonus Mentions: Two Suburbs Worth Watching

Woonona

A strong family Market with excellent schools and access to the beach. While more expensive, its low vacancy rate (<1%) and historically strong capital growth make it a safer long-term hold.

Shell Cove

Newer builds, marina lifestyle, and strong owner-occupier appeal. Slightly lower yields, but excellent long-term demand fundamentals.

What Makes a Good Investment Suburb in the Illawarra?

Savvy investors weigh more than just the median price. Here are the key indicators we analyse:

1. Vacancy Rates

Anything below 1% indicates intense rental competition. All Illawarra LGAs currently sit in this range.

2. Employment and Infrastructure

Large employers (UOW, hospitals, Port Kembla, SAS, as well as upgrades ) actively drive tenant demand.

3. Demographic Momentum

Population growth — especially in Shellharbour LGA — is one of the strongest in regional NSW.

4. Price-to-Rent Ratios

Suburbs like Corrimal and Port Kembla offer some of the region's strongest balance between rental yield and long-term capital growth.

5. Supply Constraints

Escarpment streets, heritage pockets, and coastal suburbs have limited land release, helping to protect long-term values.

Choosing the Right Investment Strategy

Your best investment suburb depends on your goals:

• Cashflow focus: Look toward Albion Park, Calderwood, and select Port Kembla units.

• Long-term capital growth: Corrimal, Woonona, Thirroul, Bulli.

• Balanced portfolio: Mix a high-yield suburb (Albion Park) with a growth suburb (Corrimal).

• Low-maintenance strategy: New builds in Shell Cove or Calderwood.

The "best" suburb is the one that aligns with your borrowing power, risk appetite, and long-term financial plan.

Ready to Invest Confidently in the Illawarra?

Buying in the Illawarra shouldn't be a guessing game. With suburbs growing at different speeds and off-market opportunities increasing, the proper guidance can save you months of searching — and thousands in negotiation.

At The Shoreline Agency, we help investors:

• Identify the best Illawarra suburbs for their goals

• Access off-market investment opportunities

• Analyse rental demand and yield potential

• Negotiate strategically in competitive markets

📞 Book a free 15-minute strategy call to plan your next investment with clarity and confidence.

👉 Book your free strategy call →

See you on the Shoreline.