Why Buyers Are Moving South from Sydney

A Shift That's Reshaping the Market

Over the past five years, the southward migration from Sydney to the Illawarra has transformed the region's property landscape. What began during the pandemic as a lifestyle experiment has become a long-term demographic trend — one that continues to redefine suburbs from Helensburgh to Kiama.

Sydney residents — particularly professionals and young families — are trading smaller, high-density living for space, coastal access, and value.

For many, it's not about leaving Sydney entirely, but about finding a balance: proximity to work without sacrificing their lifestyle.

According to recent CoreLogic data, around one in four Illawarra home buyers now originates from Greater Sydney, with migration strongest from the Inner West, Sutherland Shire, and Lower North Shore.

That demand has flowed directly into northern Illawarra suburbs, driving both growth and diversity in the local Market.

At The Shoreline Agency, we've seen this movement firsthand — buyers who once dismissed the region as "too far" are now competing fiercely for off-market opportunities within an hour of the city.

So, what's driving the move south? And what does it mean for buyers entering the Illawarra Market today?

The Search for Space, Value and Lifestyle

Sydney's affordability pressures remain a key motivator for many. With median house prices in many Sydney suburbs above $1.5 million, the Illawarra offers comparative value — and a far better lifestyle return for the money.

The value gap

As of late 2025:

• Median house price in Greater Sydney: ~$1.58 million

• Median house price in Wollongong LGA: ~$1.05 million

• Median house price in Shellharbour LGA: ~$950,000

That price gap allows buyers to upsize — often moving from a Sydney apartment to a freestanding home near the beach, with cash left over for renovation or lifestyle improvements.

Lifestyle-led priorities

Remote and hybrid work have changed the equation. Buyers no longer need to live within 10 kilometres of the Sydney CBD.

Instead, they're prioritising:

• Beach proximity and outdoor recreation

• Family-friendly communities

• Quality schools and local amenities

• Lower congestion and cleaner air

Suburbs like Thirroul, Woonona, and Austinmer tick all those boxes.

They're coastal, connected, and community-oriented — close enough to Sydney for a weekly commute but far enough to feel worlds away.

Local insight: In 2025, we're seeing more buyers settle permanently rather than treat the Illawarra as a second-home location. Many have restructured work arrangements entirely to stay coastal full-time.

Infrastructure and Connectivity Have Changed the Game

One of the biggest enablers of the Sydney-to-Illawarra migration has been infrastructure investment. Improved transport, digital connectivity, and local amenities have made the "commutable coast" a practical reality.

Transport improvements

• Princes Motorway upgrades have reduced travel time between Wollongong and Sydney's southern suburbs.

• Ongoing rail improvements between Thirroul and Waterfall are shortening the daily commute for city-based professionals.

• The planned M1 Mount Ousley interchange and F6 extension will further improve access in the coming years.

For hybrid workers who commute just two or three days a week, that's a reasonable trade-off for coastal living.

Telecommuting and digital flexibility

The expansion of high-speed internet across regional NSW means professionals, creatives, and business owners can operate seamlessly from home offices in places like Kiama, Bulli, and Shell Cove.

It's no longer a "tree change" or "sea change" — it's a strategic relocation supported by infrastructure.

Lifestyle infrastructure

Beyond roads and rail, the Illawarra's lifestyle infrastructure has matured:

• Cafés, restaurants, and boutique retail now rival Sydney's suburban hubs.

• The education and healthcare sectors continue to expand, anchored by the University of Wollongong and the Wollongong Hospital precinct.

• Local councils are investing in public spaces, cycleways, and foreshore redevelopment, particularly in Wollongong and Shellharbour.

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These shifts have created self-contained communities that no longer depend on Sydney for culture or convenience — they offer it locally.

Local insight: Wollongong City Council's long-term vision emphasises balanced density and sustainable growth, with zoning in corridors like Corrimal and Fairy Meadow designed to support higher-density living without compromising the coastal character.

The Emotional Factor: Reclaiming Balance

Behind the data, there's something deeper driving this migration — the search for balance.

From pace to presence

Sydney's high cost of living and long commute times have left many families yearning for a slower pace and a more meaningful use of time.

In the Illawarra, weekends aren't spent in traffic — they're spent on the beach, in the backyard, or walking the coastal track.

For many professionals, it's not just a financial decision — it's an emotional reset.

Community connection

Illawarra suburbs offer something increasingly rare in metropolitan Sydney: a sense of belonging. Locals know their neighbours. Schools feel community-driven. Village cafés double as morning meeting spots.

Suburbs like Bulli, Thirroul, and Kiama combine natural beauty with small-town authenticity, creating the kind of community fabric that people move for.

A long-term mindset

Where early movers once treated the Illawarra as a stepping stone, today's buyers are committing to the long term.

Many are purchasing family homes with renovation potential, signalling confidence in the region's growth trajectory and lifestyle value.

Local Insight: The northern Illawarra corridor, from Helensburgh to Thirroul, continues to attract young families, while Shellharbour and Kiama draw established professionals and downsizers seeking a quieter pace with access to the city.

Migration Trends in Numbers

• Over 30,000 new residents have relocated to the Illawarra in the past five years.

• Approximately 25% of new home purchases in the region are made by Sydney-based buyers.

• Hybrid workers now make up a growing proportion of buyers aged 30–50.

• Rental pressure is rising, with vacancy rates under 1% — a direct result of sustained migration and limited supply.

These trends suggest a long-term population shift, rather than a short-term Market spike.

For property buyers, that means continued demand in well-connected suburbs, strong capital growth prospects, and enduring rental appeal for investors.

What This Means for Buyers

If you're considering a move south from Sydney, the key is preparation and perspective.

1. Understand local micro-markets

Each Illawarra suburb has its own character, pricing, and pace.

The difference between Thirroul and Corrimal, or Kiama and Shell Cove, can be significant — not just in terms of value, but also in lifestyle fit.

2. Act early, but wisely

Properties in high-demand suburbs often sell before they are listed publicly. Working with a buyer's agent gives you access to off-market opportunities and ensures you're buying with data, not emotion.

3. Think long-term value

Focus on fundamentals: proximity to transport, schools, community, and the coast. The lifestyle factor may draw people here, but liveability and quality of infrastructure will sustain property values over time.

Considering Move South?

Whether you're relocating from Sydney or already exploring the Illawarra, buying an innovative property means understanding more than just the price — it means understanding the local Market, zoning, and lifestyle differences that shape each suburb.

At The Shoreline Agency, we help buyers navigate that process with confidence. From off-market searches to suburb strategy sessions, we're here to help you make an informed move south — and secure a property that fits your goals and lifestyle.

📞 Book a free 15-minute strategy call today to discuss your plans and get tailored insight into Illawarra's most in-demand suburbs.

👉 Book your free strategy call →

See you on the Shoreline.