Illawarra, NSW’s Top 7 Fastest-Growing Suburbs in 2025 for Buyers and Investors

October 22, 2025

Illawarra’s Property Boom: Where Growth Meets Lifestyle

Nestled on the NSW South Coast, Illawarra is making waves in the Australian property market, and it’s not just because of the stunning beaches. Known for its balance of affordability, lifestyle perks, and proximity to Greater Sydney, Illawarra is seeing rapid population growth and a wave of new infrastructure projects across key local government areas.

These shifts are driving certain suburbs into the spotlight. What makes these suburbs the fastest-growing? It’s a combination of capital growth, strong rental yields, rising demand, improved transport links, and increased migration from metropolitan cities.

Thinking about buying into one of Illawarra’s up-and-coming suburbs? SimpleFin's Illawarra mortgage brokers can help you move quickly, whether you're investing or purchasing your first home. With access to top lenders, insights into loan amounts and interest rates, and help calculating monthly repayments, we're here to take the stress out of the process.

Let’s take a closer look at the top 7 suburbs that are reshaping Illawarra’s property market in 2025.

Key Takeaways

Illawarra’s property market is booming thanks to migration trends, new infrastructure, and rental demand.
Top suburbs like Kembla Grange, Port Kembla, and West Dapto are leading the charge with double-digit annual growth.
Lake Illawarra and Albion Park are family-friendly, affordable, and great for first-home buyers.
Shell Cove delivers luxury living while Figtree offers strong long-term value near the city.
Property investors are targeting these suburbs for their capital growth, low vacancy rates, and high rental yields.
SimpleFin Mortgage Brokers help you take the next step with confidence — from first enquiry to final approval.

Top 7 Fastest-Growing Suburbs in Illawarra

1. Kembla Grange: Illawarra’s Emerging Star

Located in the booming West Dapto growth corridor, Kembla Grange is one of Illawarra’s most talked-about suburbs. Known for its scenic surrounds, modern housing estates, and easy access to the M1, it’s popular with families, first-home buyers, and investors.

The suburb’s growth is being fuelled by significant infrastructure projects, including the West Dapto Road upgrades and community parklands outlined in the West Dapto Vision. With new stormwater structures and residential units on the rise, demand is growing fast.

Median house price: $1,010,000
Average rent: $670/week
Annual growth (houses): 8.5%
Population growth: 6.1%
Rental yield: 4.3%
Infrastructure projects: West Dapto roadworks, Riparian Corridor, future retail precincts

2. Port Kembla: From Industry to Coastal Gem

Previously known for its industrial roots, Port Kembla is quickly transforming into one of the most desirable beachside suburbs in Illawarra. Its surf beaches, coastal walks, and urban regeneration projects are attracting both lifestyle seekers and smart investors.

The upcoming Port Kembla Gas Terminal, improved coastal paths, and revitalised town centre are reshaping its reputation. As vacancy rates drop and rental demand climbs, this suburb is seeing major capital growth.

Median house price: $880,000
Median unit price: $630,000
Average rent: $620/week
Annual growth (houses): 9.1%
Population growth: 5.3%
Rental yield: 4.7%
Infrastructure projects: Urban regeneration, coastal path upgrades, Port upgrades

3. Albion Park: The Family Favourite with Growth Power

Situated near Macquarie Pass and part of the Albion Park–Macquarie Pass corridor, this suburb offers a mix of leafy appeal and suburban comfort. With new schools, shopping centres, and Albion Park Bypass upgrades, it’s becoming a hotspot for young families and first-time buyers.

It’s well connected to Shellharbour-Oak Flats and offers more housing supply compared to inner suburbs, which keeps demand strong.

Median house price: $925,000
Median unit price: $620,000
Average rent: $650/week
Annual growth (houses): 7.8%
Population growth: 6.4%
Rental yield: 4.5%
Infrastructure projects: Bypass, school upgrades, sport and public spaces

4. West Dapto: The Long-Term Growth Engine

West Dapto is one of the most important pieces of Illawarra’s future. Backed by the Wollongong City Council, this planned mega-suburb is projected to accommodate over 50,000 people as per the West Dapto Vision.

The area's master plan includes new town centres, public schools, stormwater infrastructure, and improved transport links to Greater Sydney. For long-term investors, this is the definition of early-mover advantage.

Median house price: $980,000
Median unit price: N/A
Average rent: $680/week
Annual growth (houses): 8.2%
Population growth: 7.2%
Rental yield: 4.6%
Infrastructure projects: Planned town centres, West Dapto Road upgrades, development application register

Buying in one of the fastest-growing suburbs in Illawarra NSW? Let our Illawarra mortgage brokers guide your loan application from start to settlement. Call 0457 531 124 or visit www.simplefin.com.au.

5. Lake Illawarra: Affordable Waterfront Living

For those chasing that sea change, Lake Illawarra offers affordable coastal living without sacrificing convenience. Close to beaches, public parks, and local shops, this suburb has seen solid capital growth in recent years.

With rising interest from international students, retirees, and families, Lake Illawarra has quickly become a favourite among first-home buyers and investors seeking strong rental yields.

Median house price: $780,000
Median unit price: $590,000
Average rent: $620/week
Annual growth (houses): 6.9%
Population growth: 4.8%
Rental yield: 4.8%
Infrastructure projects: Foreshore upgrades, improved planning rules

6. Shell Cove: Luxury, Lifestyle, and Marina Living

Shell Cove offers resort-style living on the NSW South Coast. Anchored by the stunning Shell Cove Marina, this suburb is a premium hotspot, attracting professionals, retirees, and buyers looking to invest in a luxury development with serious lifestyle appeal.

With its well-planned town centre, parks, and new residential units, Shell Cove stands out in the post-pandemic property market, fuelled by net migration and the appeal of beachside living.

Median house price: $1,240,000
Median unit price: $750,000
Average rent: $740/week
Annual growth (houses): 10.1%
Population growth: 6.9%
Rental yield: 3.8%
Infrastructure projects: Marina, dining precinct, luxury housing strategy

7. Figtree: Location, Community, and Steady Growth

Located just minutes from Wollongong CBD, Figtree offers the best of both worlds: established community vibes with new growth potential. This suburb is close to top schools, shopping centres, and health services, making it ideal for families.

Demand remains strong due to the suburb’s proximity to employment hubs, and the local real estate market is seeing low vacancy rates.

Median house price: $1,100,000
Median unit price: $690,000
Average rent: $690/week
Annual growth (houses): 7.5%
Population growth: 5.2%
Rental yield: 4.1%
Infrastructure projects: Community centres, local parks, school investments

Sources: Realestate.com.au, Domain, NSW Government. Please note that property values tend to change over time. Hence, it’s always best to consult with your real estate agent for the latest market prices.

Make smarter property moves in NSW Illawarra’s emerging suburbs. SimpleFin brokers help with lender selection, loan interest rates, and approvals. Talk to our Illawarra mortgage brokers today at 0457 531 124 or visit www.simplefin.com.au.

Frequently Asked Questions

What are the fastest-growing suburbs in Illawarra?

Kembla Grange, Port Kembla, West Dapto, Albion Park, Shell Cove, Lake Illawarra, and Figtree.

Is Illawarra a good place to invest in 2025?

Yes. It offers affordability, strong capital growth, and solid rental yields.

What makes these Illawarra suburbs grow so quickly?

Population growth, infrastructure investment, and rising rental demand.

Are these Illawarra suburbs suitable for first-home buyers?

Yes. Areas like Lake Illawarra and Albion Park are affordable and family-friendly.

What's the average rental yield in Illawarra, NSW?

Yields range between 4% to 5%, depending on suburb and property type.

How do I calculate my loan amount and repayments?

Use a loan calculator or speak to a broker at SimpleFin for a tailored assessment.

Why choose a broker over a bank?

A mortgage broker like SimpleFin gives you access to more products and helps you find the best deal for your situation.

Ready to Buy into Illawarra's Booming Suburbs? Let SimpleFin Help

The fastest-growing suburbs in Illawarra, NSW, are filled with promise — but acting early is key. Whether you're a first-time buyer or seasoned investor, SimpleFin’s Wollongong mortgage brokers make the process easier, faster, and tailored to your goals.