Wollongong November 2017

The month in review: Wollongong

By Herron Todd White
November 2017

The 2016 Census reports that just under a third (29%) of properties in the Illawarra (Wollongong, Shellharbour and Kiama LGAs) are rented out. This number is slightly lower in the Shoalhaven (25%). Median rent for the Shoalhaven is $280 per week and $330 per week for the Illawarra. Major itinerant tenant groups include: students around Wollongong, Gwynneville and Keiraville; hospital workers around the Wollongong hospital; and defence staff around Nowra. Other types of tenants include Housing NSW tenants and singles or couples who are not in the position to purchase or have no preference for owning a property.

The University of Wollongong is a large driver of tenant demand in the 2500 and 2519 postcodes. During February the demand for rental properties in these postcodes is typically high as students look to secure accommodation for the year. For the remainder of the year demand is fairly balanced. The recent supply of a large number of new units in the Wollongong CBD does not yet appear to have caused any major shift in the rental market although there is concern of an oversupply in the short to medium term.

Realestate.com.au reports the following snapshots throughout the region: 2-bedroom units have a median weekly rental of $410 in Wollongong, $310 in Barrack Heights and $270 in Nowra; 3-bedroom houses have a median weekly rental of $600 in Bulli, $495 in Figtree, $460 in Albion Park and $350 in Nowra. Local agents are reporting that supply and demand are fairly balanced in the region and we are not aware of any incentives or inducements being paid by landlords or renters.

The high end rental market is fairly limited in this region although we note the following properties currently listed for rent: a 4-bedroom, 4-bathroom architecturally designed home 100 metres from the beach listed for $2,000 per week; a 3-bedroom, 2-bathroom penthouse unit on Cliff Road in Wollongong for $1,500 per week; a 3-bedroom, 2-bathroom penthouse unit on Cliff Road in Wollongong for $1,500 per week; a 5-bedroom 2-bathroom renovated two storey dwelling in Kiama for $1,200 per week.

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