🏡 Illawarra Market Update: Tight Listings Drive Momentum — Week Ending 27 October 2025 Summary

Limited housing supply and consistent buyer demand are creating renewed momentum in the Illawarra property Market. Despite affordability pressures, values across Wollongong, Shellharbour and Kiama remain resilient, showing modest monthly growth and holding firm against broader headwinds.

Key Stats (Week Ending 27 October 2025)

Indicator	Latest Figure	Source
Median Dwelling Value	≈ $1,032,431	view.com.au (Oct 2025)
Median House Price	≈ $1,295,000	LinkedIn Market Update
Median Unit Price	≈ $715,000	LinkedIn Market Update
Listings for Sale	≈ 1,340 (-14 % YoY from 1,560)	Region Illawarra (Oct 2025)
Auction Clearance Rate	~ 59 % (NSW Regional Proxy)	LinkedIn Market Update

Market Pulse

The Illawarra remains a healthy balance of confidence and caution. Prices have steadied, listings are tight, and competition is firm — particularly for coastal and family-friendly suburbs such as Thirroul, Bulli, Woonona and Kiama Downs.

House values lifted by roughly +1.1 % in October, and units by +1.2 % — small gains that highlight Market depth rather than volatility. These increases are modest compared to the sharp post-pandemic surges, yet they reflect a resilient regional economy underpinned by steady population inflows, low unemployment, and ongoing Sydney migration.

The real story is supply. Across Wollongong, Shellharbour, and Kiama combined, the stock available for sale has dropped by around 14% year-on-year — the tightest October figure since pre-COVID. That scarcity is helping to hold prices firm even as interest-rate sensitivity keeps buyers selective.

Meanwhile, auction clearance rates hovering around 59 % suggest a steady Market — neither overheated nor sluggish. Many properties still sell before auction or shortly after passing in, reinforcing that motivated buyers who act quickly are often successful.

Sub-Market Insights

• Wollongong City Corridor: High demand for renovated family homes near schools and the coast is driving prices close to their previous 2022 peaks. North Wollongong and Fairy Meadow continue to attract investor interest due to their proximity to universities and transport links.

• Shellharbour Region: Stock levels remain particularly tight around Barrack Heights and Flinders, where family homes priced under $1.2 million are selling within an average of five weeks. New land releases are limited, which keeps pressure on the existing supply.

• Kiama and Surrounds: Lifestyle buyers from Sydney continue to dominate the Market, focusing on character homes and properties with scenic views. While transaction volumes are low, price stability remains remarkable given the limited turnover.

What This Means for Buyers

For buyers in the Illawarra, this is a Market that rewards clarity and speed over speculation. Supply constraints and incremental price growth mean waiting for an "IP "could cost you the right home altogether.

1️⃣ Quality moves fast. Properties with strong presentation, good orientation and proximity to amenities are still seeing multiple offers within days of listing. These homes often achieve close to, or slightly above, the asking price.

2️⃣ Finance and preparation matter. With median house prices around $1.3 million and units at approximately $ 715,000, pre-approval and clear budget discipline are critical. Vendors are less inclined to accept extended finance clauses in a tight Market.

3️⃣ Realism is your advantage. Vendor discounting is limited — perhaps 4-5% on average — and mainly occurs where properties require work or are poorly located. Buyers expecting deep discounts will miss opportunities.

4️⃣ Units are the accessible gateway. The $700 k band is where first-home buyers and downsizers are finding relative value. High-rise supply is not excessive, so well-located units with low fees will continue to hold demand.

5️⃣ Strategy beats speed alone. Partnering with a buyer's agent helps identify off-market or pre-listing opportunities, which are becoming increasingly valuable each month. In a Market where public stock is shrinking, Network access is often the difference between winning and missing out.

Local Macro Forces

The broader NSW regional context still matters. CoreLogic and PropTrack data show regional New South Wales values up ~ +4-5 % year-to-date.

The Illawarra sits in the upper half of that range thanks to continued Sydney commuter demand and lifestyle migration.

Economic stability in the region is reinforced by major infrastructure projects, including the M6 Stage 1, Port Kembla developments, and industrial renewal along the southern corridor. These factors are attracting medium-term investment confidence even as short-term affordability pressures remain.

4–6 Week Outlook

Looking ahead to November and early December 2025:

• Listings: Expected to remain constrained as the pre-holiday period slows vendor activity. Stocks may rise slightly in early December before the summer pause.

• Buyer activity: Enquiry levels and inspection attendance are likely to hold steady. Casual buyers will fade as serious purchasers compete for the remaining Spring stock.

• Clearance rates: Potential to rise into the low 60% range as vendors adjust to realistic pricing and buyers accept current conditions.

• Prices: Houses should edge slightly higher (~ +0.5–1 %) while units stay flat to mildly positive.

• Sentiment: Still cautiously optimistic — buyers are active, not panicked; vendors confident, not greedy.

The Takeaway

The Illawarra Market is holding its line. Steady growth, tight stock and a well-informed buyer pool define this phase. For anyone considering a purchase, it is less about timing the Market and more about being prepared when the right property becomes available.

At The Shoreline Agency, we continue to see clients succeed when they pair local knowledge with a structured plan — whether that means leveraging off-market networks in Thirroul or navigating the tight Shellharbour supply.

Ready to buy smarter in the Illawarra?Book your complimentary 15-minute Buyer Strategy Session today and get an action plan tailored to your goals.📅 Book Your Call →

Sources and References

• view.com.au (2025) – "regional NSW Market Gathers Pace as Listings Tighten”

• Region Illawarra (22 October 2025) – "Illawarra Property Prices Surge as Listings Dry Up”

• LinkedIn Market Update – Illawarra regional medians and clearance rate (~59 %)

• CoreLogic Monthly Regional Report – October 2025 snapshot (NSW regional context)

• SQM Research – Stock on Market data (September 2025)