Guide
Best suburbs to invest in Wollongong: 5 affordable picks for 2026
Five suburbs in Wollongong where a typical house costs less than the local median of $1,035,000 and the rent gives one of the higher yields in the area. A shortlist to research, not a list to buy from.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
Five affordable suburbs to research in Wollongong: Warrawong, Tullimbar, Koonawarra, Dapto, Mount Warrigal. Each has a typical house price under $1,035,000. Tullimbar has had the strongest growth, about 5.3% a year over five years, and Warrawong has the highest gross yield, about 3.9%.
The five suburbs at a glance
Houses, all bedroom sizes, to 31 October 2026. Growth figures are average yearly changes.
| Suburb | Typical house price | Weekly rent | Gross yield | Price growth (5 yrs, a year) | Rent growth (3 yrs, a year) |
|---|---|---|---|---|---|
| Warrawong Wollongong, near Port Kembla | $883,702 | $656 | 3.9% | 3.9% | 6.3% |
| Tullimbar Shellharbour | $979,251 | $707 | 3.8% | 5.3% | 4.7% |
| Koonawarra Wollongong, near Dapto | $873,055 | $628 | 3.7% | 5.1% | 3.9% |
| Dapto Wollongong | $927,879 | $661 | 3.7% | 4.3% | 6.2% |
| Mount Warrigal Shellharbour | $981,699 | $698 | 3.7% | 4.8% | 6.0% |
Each suburb in brief
1. Warrawong, Wollongong, near Port Kembla
South of the Port Kembla steelworks, with its own shopping centre. The highest yield on this list, with rents up more than 8% in the past year.
Typical house price $883,702, rent about $656 a week (a gross yield of 3.9%). Prices grew about 3.9% a year over five years and 6.6% a year over ten; rents grew about 6.3% a year over three years.
2. Tullimbar, Shellharbour
A newer estate west of Albion Park, mostly built in the past 15 years. Its 10-year growth is flattered by new, larger homes replacing vacant land in the data, so lean on the 5-year figure.
Typical house price $979,251, rent about $707 a week (a gross yield of 3.8%). Prices grew about 5.3% a year over five years and 9.0% a year over ten; rents grew about 4.7% a year over three years.
3. Koonawarra, Wollongong, near Dapto
A small suburb between Dapto and Lake Illawarra, with strong 3-year price growth but slower rent growth.
Typical house price $873,055, rent about $628 a week (a gross yield of 3.7%). Prices grew about 5.1% a year over five years and 6.6% a year over ten; rents grew about 3.9% a year over three years.
4. Dapto, Wollongong
The main town centre in Wollongong's south, on the South Coast train line. The West Dapto growth area nearby will add a lot of new homes.
Typical house price $927,879, rent about $661 a week (a gross yield of 3.7%). Prices grew about 4.3% a year over five years and 5.6% a year over ten; rents grew about 6.2% a year over three years.
5. Mount Warrigal, Shellharbour
A Shellharbour suburb above Lake Illawarra, with rents up 8% over the past year.
Typical house price $981,699, rent about $698 a week (a gross yield of 3.7%). Prices grew about 4.8% a year over five years and 6.2% a year over ten; rents grew about 6.0% a year over three years.
How we chose them
- Affordable: a typical house price below the median for Wollongong, $1,035,000 (Cotality, Illawarra median dwelling value, September 2026, reported by the Illawarra Mercury).
- Reliable: only suburbs with enough sales and rentals to give dependable figures.
- Ranked on gross rental yield, then checked for price and rent growth so a high yield isn't simply a sign of falling values. 10 suburbs passed the first filters.
- Covers Wollongong itself. Smaller towns elsewhere in the state are on the regional list.
This is a shortlist for research, not a recommendation to buy in any of these suburbs. Past growth doesn’t predict future growth, and figures for a whole suburb hide big differences between streets and properties. General information only, not personal financial advice.
Before you buy in any of them
- Check the council's flood, bushfire and planning overlays for the street, not just the suburb.
- Look at the vacancy rate and how many rentals are listed, so you know tenants are there.
- Find out what's being built nearby: new estates and apartment blocks add supply and can slow growth.
- Get a building and pest inspection; many affordable suburbs have older homes.
- Run the numbers on the property itself, including interest, rates, insurance and management.
Our rental yield calculator and cash flow calculator help with the last step. For buying costs, see stamp duty.
- Wollongong market guide 2026
- Buyers agent Wollongong
- Best suburbs to invest in regional NSW
- Best suburbs to invest in Australia: every list
- All locations
Cite this page: Rising Returns, “Best Suburbs to Invest in Wollongong 2026: Top 5”, data to 31 October 2026, https://risingreturns.com.au/best-suburbs-to-invest-wollongong/
Thinking of buying in Wollongong?
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Book a free discovery callInvesting in Wollongong: common questions
What are the best affordable suburbs to invest in Wollongong?
On our analysis of suburb data to 31 October 2026, our five picks are Warrawong, Tullimbar, Koonawarra, Dapto and Mount Warrigal. Each has a typical house price below $1,035,000, enough sales to give reliable figures, and one of the higher rental yields in the area. They are a starting point for research, not a recommendation to buy in any of them.
What does affordable mean on this list?
A typical house price below the median for Wollongong, $1,035,000 (Cotality, Illawarra median dwelling value, September 2026, reported by the Illawarra Mercury). It is relative: an affordable suburb in Sydney still costs more than most regional towns.
Does past growth mean these suburbs will keep growing?
No. Growth figures show what has happened, not what will. Strong recent growth can mean a suburb has already had its run. Look at supply, jobs, infrastructure and vacancy rates as well, and check the individual property and street.
Why does the list only cover houses?
Houses usually hold more land value, which tends to drive long-term growth, and house data is more consistent between suburbs. Units and townhouses can suit some budgets and goals, but they need a separate comparison.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.