Dapto Property Market Surges 8.8% | Bartlett & Co Property

January 2026 Market update

Illawarra house prices closed 2025 at fresh highs as the region continues to attract Sydney buyers and those looking for relatively affordable, lifestyle south of the Harbour City. House values rose 8.2 per cent over 2025, outperforming the broader regional NSW benchmark of 7.4 per cent.

Tim Lawless, Head of Research at Cotality said that the region continued to be an attractive proposition for lifestyle.

“With the median dwelling value across the Illawarra ($1,060,515) holding about $220k down on Greater Sydney ($1,280,613), the region is likely to remain a popular location for home buyers looking for more affordable housing options alongside the potential for a lifestyle upgrade,” he said.

Lawless explained that result augurs well for 2026. “The commutability and liveability, alongside a relative level of affordability compared with Sydney should help to keep some upwards pressure on home values in 2026,” he said.

The biggest winner in Illawarra suburbs was Huntley, near Dapto, which posted an impressive 25% rise, followed by Bulli at 15% and Mount Ousley at 14.3%.

“With housing affordability already stretched and worsening, it stands to reason that fewer borrowers will be able to access credit as serviceability barriers become more prominent.”

What's ahead for the market in 2026?

More than 1,100 property experts surveyed across the country remain bullish on the 2026 property market in the face of rising interest rates, according to Cotality’s new report Decoding 2026. Forty-four per cent of respondents tipped property prices across the country to rise by 5 per cent or more, even though many conceded that growth would be uneven.

The sentiment comes on the back of an 8.6% growth in national prices across all dwellings in 2025, even though the momentum slowed in the last quarter of the year.

“Renewed speculation that the rate cutting cycle may be over, and that the next move from the RBA could be a hike, has dented housing confidence,” Tim Lawless, Head of Research at Cotality said. “A higher-for-longer interest rate setting, combined with renewed cost-of-living pressures and worsening affordability, appears to have taken some heat out of the market heading into 2026.”

Discover Wollongong

Wollongong’s seamless blend of mountains and sea, mixed with urban lifestyle and convenient links to Sydney make it one of the Illawarra’s most diverse and dynamic property markets.

The city’s unique geography gives residents the best of spectacular ocean beaches, leafy escarpment walks and a thriving cultural scene all within minutes of each other. The foodie, arts and community vibes, boosted by events, galleries, cafés, markets and festivals draw local and interstate crowds – and the world class WIN Entertainment precinct attracts sports and entertainment acts from across the globe.

Located only 80 kilometres from Sydney, the attraction of an affordable lifestyle within easy commuting distance to Sydney continues to support strong property demand. The city also has a world-class university, healthcare, excellent schools and services and tourism.