Illawarra Property Market Wrap – Week Ending 8 December 2025
- Joel Hynes
- 2 days ago
- 3 min read
Illawarra's property Market remains resilient, with limited housing stock fueling competition and keeping prices firm.
Buyer demand is steady heading into the holiday season, offering active buyers potential opportunities amid easing competition.
Key Stats (Wollongong/Shellharbour/Kiama)
Auction Clearance Rate: ~50% (about 40 auctions across Illawarra last week)
Median Prices: Houses ≈ $1.30 million; Units ≈ $715,000
Properties for Sale: ~1,340 listings region-wide (≈14% fewer than a year ago); new listings remain minimal, keeping supply tight
Days on Market: ~28–35 days for houses on average (longer for units)
Vendor Discounting: ~3–4% off the asking price on average
Market Overview
Early December saw steady buyer demand despite a seasonal slowdown in new listings.
There are roughly 1,340 properties for Sale across Wollongong, Shellharbour and Kiama, about 14% fewer than this time last year.
This shortage of stock continues to prop up prices, with median house values holding around $1.3 million and units about $715,000, reflecting slight gains and firm conditions.
Prices have rebounded from mid-year lows and are now approaching their 2022 peak levels. The most substantial growth over the past year has been in the Kiama–Shellharbour corridor, driven by lifestyle appeal and continued interest from Sydney buyers.
Auction activity is winding down as the holidays approach. Only about 40 auctions were held in the Illawarra last week, with a clearance rate hovering near 50%, indicating moderate buyer confidence.
Many well-priced homes are selling before auction, a sign that motivated buyers are acting early to secure quality properties. In contrast, overpriced listings often linger or pass at auction, creating opportunities for post-auction negotiations.
House and unit prices have remained firm in the face of limited supply, and well-presented homes are still attracting strong interest – open homes for desirable listings have drawn large turnouts and multiple offers, often leading to sales within a month.
Meanwhile, the dearth of fresh listings through spring and early summer has left many buyers dissatisfied, as the few properties that trickled onto the Market in November were insufficient to meet demand.
Older listings (on the Market for more than several weeks) offer some room for negotiation, with average vendor discounts of 3–4% off the initial asking price.
What This Means for Buyers
Be Ready to Act Quickly: With stock at a premium, competition for good homes is intense. If a property fits your criteria, move fast – have your finances pre-approved and be prepared to make a firm offer.
Leverage Negotiation Opportunities: Older listings or homes that passed at auction may be overpriced or in need of updates, creating opportunities to negotiate. Buyers can capitalise by offering reasonable terms and price, potentially securing a deal below the initial asking price.
Holiday Lull Advantages: The upcoming holiday period will see many buyers and sellers step back. This seasonal lull can benefit active buyers – with fewer competing bidders, you might find less crowded inspections and more flexible sellers willing to negotiate on timing or price.
4–6 Week Outlook
Listings to Temporarily Dry Up: Very few new properties will hit the Market through the end of December. Many sellers have already deferred listings until the new year, and some current listings may even be withdrawn over the holiday period.
Auctions on Pause Until Late January: The auction Market will go on hiatus after mid-December. Expect a restart in auction activity by late January 2026, when weekend auctions resume.
Buyer Activity Dips, Then Rebounds: Open-home turnout and sales volumes will slow, but serious buyers who remain active can use this quiet window to their advantage. Expect buyer demand to pick up again after Australia Day.
Prices Hold Steady: Home values should remain firm into early January. Sellers may need to be realistic and flexible on price to get a deal done in this quieter period.
Longer Days on Market (Temporarily): Homes listed through the holidays may take longer to sell simply due to fewer active buyers. This should improve by February,y as fresh listings and buyer activity return.
Market sentiment remains cautiously optimistic heading into 2026 — interest rates are stable, supply is tight, and buyer interest is holding firm in the Illawarra.
Sources
Domain Auction Results – Illawarra https://www.domain.com.au/auction-results/illawarra-nsw
PropTrack Weekly Market Update https://www.proptrack.com.au/news/
CoreLogic Auction Market Preview & Weekly Wrap https://www.corelogic.com.au/news
SQM Research – Property Listings and Asking Prices https://sqmresearch.com.au/
NSW Government Planning Portal – Illawarra–Shoalhaven Region Data https://www.planningportal.nsw.gov.au/
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