Illawarra Property Market Wrap – Week Ending 7 December 2025
- Joel Hynes
- 2 days ago
- 3 min read
TL;DR: The Illawarra property Market remains resilient as limited housing stock keeps competition and prices firm. Buyer demand is steady across Wollongong, Shellharbour, and Kiama, even as new listings slow with the year's end. With the holiday season approaching, buyers who stay active could face less competition and find more flexible sellers in the coming weeks.
The Illawarra property Market began the summer with limited listings and steady buyer demand.
Across Wollongong, Shellharbour, and Kiama, total stock remains low, fueling competition for quality homes and keeping prices firm as the year draws to a close.
Auction volumes have started to ease, with the clearance rate holding around 50%.
As the Market enters its seasonal holiday slowdown, conditions remain competitive – especially for buyers prepared to act decisively.
Indicator | Latest Figure (approx.) |
Auction Clearance Rate (Wollongong/Shellharbour/Kiama) | ~50% (approx. 40 auctions) |
Median House Price | ≈ $1.30 million |
Median Unit Price | ≈ $715,000 |
Listings for Sale (Wollongong/Shellharbour/Kiama) | ~1,340 (↓ ~14% YoY) |
New Listings | Minimal increase (stock remains tight) |
Average Days on Market | ~28–35 days for houses (longer for units) |
Vendor Discounting | ~3–4% off asking price (average) |
Market Overview
Buyer demand remained steady into early December, despite fewer new listings than usual as the year winds down.
The total number of properties on the Market across the region is roughly 1,340 – about 14% lower than a year ago.
This shortfall in available homes continues to underpin prices, with both houses and units holding firm or recording slight gains.
Auction activity is beginning to wind down, with around 40 properties going under the hammer this past week.
The clearance rate hovered near 50%, indicating moderate buyer confidence. However, well-priced homes often sell before auction, showing that motivated buyers are acting early.
In contrast, properties with overambitious pricing tended to linger or pass in at auction, creating opportunities for post-auction negotiation.
House prices across the Illawarra still sit around $1.3 million, while units are hovering near $715,000.
These figures represent a modest rebound from mid-year and are approaching the peak values last seen in 2022.
Price growth over the past year has been strongest in the Kiama–Shellharbour corridor, driven by the region's lifestyle appeal and ongoing interest from Sydney-based buyers.
Listings have remained tight throughout spring and into early summer. While some new stock trickled in during November, it wasn't enough to satisfy buyer appetite.
Well-presented homes attracted large open-home turnouts, multiple offers, and often sold within four weeks.
In contrast, older listings have provided some room for negotiation, with average vendor discounts around 3–4% off asking prices.
What This Means for Buyers
Stock Remains Scarce – Be Ready: With fewer listings on the Market than last year, competition is intense. If a home fits your criteria, move quickly and have your finances ready.
Quality Homes Sell Fast: Turnkey houses in desirable suburbs are often selling within days of the first open home. Don't expect much breathing room on popular new listings.
Negotiate on Older Listings: Properties that have been on the Market for more than 6 weeks may be overpriced or in need of updates. These can present opportunities to negotiate a better deal.
Units Offer Relative Value: Townhouses and apartments in the low-$700k range remain accessible for first-home buyers and downsizers, with slightly less buyer competition than houses.
Post-Auction Opportunities Exist: Roughly half of the auctions are passing in. If your target property doesn't sell under the hammer, be ready to negotiate immediately after the auction.
Holiday Period Could Bring Opportunity: As competition thins out over December and January, active buyers may find more flexible sellers and less crowded inspections.
4–6 Week Outlook (Through Mid-January 2026)
⏳ Listings Will Slow Further: Expect very few new properties to hit the Market until mid-to-late January. Many current listings will be withdrawn over the holiday period.
📉 Buyer Activity Will Dip: As the summer holidays begin, open-home traffic and sales activity will ease. However, serious buyers who remain active could encounter reduced competition.
⏸️ Auctions to Pause, Resume Late January: Most auction activity will halt after early December. A noticeable ramp-up in auctions is expected by late January 2026 as the Market reawakens.
⚖️ Prices to Hold Steady: With low transaction volumes, significant price movements are unlikely through year-end. Well-priced homes will still sell, but sellers may need to remain flexible with their price expectations.
⏱️ Time on Market Will Rise Temporarily: Properties will likely sit on the Market longer during the seasonal slowdown. This should improve once fresh listings appear and buyer activity picks up again in 2026.
👍 Buyer and Seller Sentiment Remain Positive: Confidence in the Illawarra Market is steady heading into 2026. Interest rates are stable, and the region's lifestyle appeal continues to support underlying demand.
Sources
Domain/REA Weekly Auction Data – NSW auction results (Week Ending 7 December 2025)
CoreLogic/Cotality via Region Illawarra – Median prices and listings
SQM Research & PropTrack – Market trends and inventory data
