Apartment boom: Wollongong set to see a whopping 840 units finished next year

Apartment living is set to receive a major boost in Wollongong, with a new report outlining the whopping number set to come to the city in the next three years.

With a large number of developments under way and even more under DA assessment we are about to see an increased supply - to the tune of 840 apartments being completed in 2026, if projects are finished on schedule.

That's according to Colliers' newly launched 2025 Wollongong Apartment Report.

'A turning point'

According to the report, from an annual average of 207 apartments (2021-2025), completions are forecast to surge to 765 units per annum (2026-2028) in the Wollongong CBD.

"After years of supply constraints, regulatory inertia, and economic headwinds, the interplay between targeted government policy and a gradual economic recovery is beginning to unlock long-delayed stock and rekindle investor interest," the report said.

The 2025 report marks a "definitive shift" in the city's residential development trajectory when it comes to apartments.

Impact of policy

According to the report, this shift is underpinned by extra stock due to theNSW government's In-fill Affordable Housing Scheme, and projects that were delayed in previous years.

Colliers Wollongong managing director Simon Kersten said the affordable housing scheme has resulted in an additional 791 apartments being added to the pipeline in the Wollongong LGA up to 2029.

He said of the 791 additional apartments in the DA pipeline, 382 are affordable, showcasing a shift in developer strategy in response to incentives such as floor space ratio and height bonuses.

"I'm not saying it's product on the ground yet... But in the pipeline there's an nearly 800 additional homes because of that one policy," Mr Kersten said.

"They've done Low- and Mid-Rise Housing, the Transport Oriented Development Program and the affordable housing. I think the affordable housing has been the one that's had the most impact in Wollongongto date.

"The other two will have an impact. They're slowed down a little by the development feasibility issues. It's just a moment in time where building costs are higher and apartment prices haven't risen yet.

"That will change over time and then the things like the TOD and LMR policy will be really beneficial [locally]."

Making development happen

Mr Kersten said the development feasibility issues were having an impact within the Wollongong market.

"The maths tells us at the moment for what apartments are selling for, most developers can't afford to build them at that price," he said.

"We've got a couple of developers who have bought land a long time ago and cheaply, and who have lower development costs than other developers because they have their own building companies.

"So a lot of the stock that's coming is with these type of developers. But what will happen is it'll get to a point where prices will either go up or these developers won't deliver that product that's earmarked because they'll have to delay it further."

Mr Kersten noted there were projects due to be completed in 2026 and 2027, such as Crownview apartments, that might be further delayed.

"So, while we're sitting here now saying there's going to be 800 apartments next year, 600 the year after, 800 the year after, it's likely some of those will get further delayed."

Why is apartment living in demand?

Why is there a demand for apartment living in Wollongong right now? Mr Kersten said there were a few reasons for this, including affordability.

"You can still buy an apartment cheaper than you can buy a house and land," he said.

"You can still buy a new quality apartment for under $800,000, whereas there aren't many locations where you can buy a house for that kind of money.

"The second one is that Wollongong CBD is actually a really nice place to live. It's had substantial upgrades, and it's now a city with things you can do both in the daytime and at night. And it's also less than a kilometre from the water."

Mr Kersten said another factor was a general shift in buyer needs and wants.

"Young professional couples don't necessarily want to need a house with a yard to worry about any more," he said.

"And at the other end of the scale, your empty-nester and baby boomers want to be able to lock the front door and go, and not worry about a yard or security."

Looking ahead

According to the report, key opportunities during the next five years in the Wollongong area included utilising policies like the LMR, TOD and theaffordable housing scheme to expand supply in underdeveloped areas, and investing in infrastructure that supports outer-suburb apartment development.

It also calls on policymakers to broaden affordable housing scheme incentives and streamline the court appeal timeline.

"Wollongong's apartment market is no longer simply reacting to crisis conditions; it is evolving into a policy-sensitive, data-informed ecosystem," the report stated.

"With completions rebounding and capital values holding firm, 2025 marks a move from constrained growth to controlled, catalytic expansion."

Written by Brendan Crabb, Illawarra Mercury Property Reporter.