May 2026 Market update
National property prices flatlined in May for the first time since January 2025 according to research firm Cotality’s latest research. Director Tim Lawless says that the flat market reflects four major headwinds to the housing market.
“You’ve got affordability challenges, which have been existing for some time, but then on top of that, you’ve got 75 basis points of interest rate hikes, a global oil crisis that’s seen confidence fall off a cliff, and now you’ve got disincentives for investment as the budget’s handed down,” Lawless said in the latest report.
Sydney and Melbourne recorded the biggest falls at 0.9% and 0.8% respectively for the month while other capitals such as Brisbane and Perth told another story, adding healthy returns to the bottom line of homeowners.
Illawarra bucks downturn
Only 70 kilometres south of Sydney, the Illawarra property market has dodged our northern neighbours downturn for May with a slim 0.1 per cent addition to the value of property.
While the national figures were flat, regional areas were up 0.6 per cent. The Illawarra came in lower because of its proximity to Australia’s largest property market.
“The Illawarra was marginally weaker than the rest of regional NSW, which likely speaks to the relative cost of the area,” Gerard Burg, Cotality head of research said. “The Illawarra is a bit more expensive than many of the more affordable regional markets elsewhere.”
Burg says that houses were up in the Illawarra, but units fell slightly. Drilling down further, the most resilient suburbs were Balgownie, Mangerton and Windang.
Wollongong Running Festival
The King’s Birthday Long Weekend turned on the weather with visitors from across the state flocking to participate in the Wollongong Running Festival.
The event attracted some 3,000 locals and runners from across the state to take on the half-marathon, 10km, 5km and 2km kid’s events.
The event show cased the Illawarra region as the runners made their way from Marine Drive, up to Cliff Road and North Wollongong, and into Fairy Meadow before looping back through Puckey’s Estate and Stuart Park. The jewel of the run was the rising sun over the Blue Mile and the Lighthouse.
Bartlett and Co. Principal Tim Bartlett says that the event was an opportunity to showcase the region. “The Festival showed once again that Wollongong and its northern suburbs like North Wollongong, Fairy Meadow and Towradgi are spoiled for views and the active lifestyle.”
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