Kiama-Shellharbour Property Market in 10 Charts

A Coastal Lifestyle Hub on the Illawarra

Located around 90 minutes south of Sydney, Kiama-Shellharbour offers a compelling lifestyle alternative for buyers seeking coastal living without sacrificing access to major employment centres. With healthy population growth, an improving economy, expanding infrastructure, and strong employment links to Greater Sydney, Kiama-Shellharbour has become an appealing place for both homeowners and investors.

Regarding its property market, after a period of double-digit price growth in 2021-22, house prices fell in 2023 and have since slowly recovered. Over the past 12 months, house prices grew by 3.9%. Will Kiama-Shellharbour’s house prices accelerate in the year ahead? Join us today to explore the city’s current property market conditions and outlook!

As of March 2026, Kiama-Shellharbour’s house market pressure is moderate.  

Among the six metrics that InvestorKit uses to measure market performance, Kiama-Shellharbour scores:

• 2 (weak) for affordability
• 3 (moderate) for growth cycle position and rental yield
• 4 (strong) for price pressure and incoming supply
• 5 (very strong) for rental pressure

Demographic & Economic Trends

Population growth has generally trended upward over the past 8 years, with some fluctuations between 2019 and 2023, and now sits at 1.9%. Both internal and overseas migration have been strong contributors, although internal migration has been the larger driver in most years. 

The unemployment rate remains relatively high (6.8%), though it has declined from its peak of 7.8% in mid-2020. Job advertisements have eased in recent years, but remain well-above the pre-pandemic average. 

Healthy population growth alongside improving economic conditions point to resilient underlying housing demand and continued support for the local property market.

Kiama-Shellharbour’s Property Market: Sales Market Trends

Kiama-Shellharbour’s house prices recorded modest growth over the past year, rising 3.9% to a median of $987,000. Since mid-2025, the 3-month rolling median has strengthened noticeably, while days on market have started to decline, indicating improving absorption and building price momentum.

Inventory has fallen to a balanced level of 2.6 months. Listings have declined since mid-2025, while sales volumes have risen steadily, tightening the market.

Building approvals have remained below the high-rate benchmark and have stabilised at low levels in recent years (1.7%). At this level, incoming supply suggests a low risk of oversupply, particularly given the strong population growth rate.

Kiama-Shellharbour has delivered healthy growth over the past decade (6.0%), in line with the national long-term average (5-7%). Over the past 5 years, growth has accelerated to 7.3%. With market conditions and economic fundamentals improving, there may be further upside.  

Kiama-Shellharbour’s Property Market: Rental Market Trends

Kiama-Shellharbour’s rental market is under high pressure, as reflected in the extremely low vacancy rates of below 1%. Median rent has grown relatively strongly over the last 12 months, up by around 7.1%.

Kiama–Shellharbour’s median rental yield has been relatively steady at around 4.0% over the past two years, sitting slightly below the 4.1% average across the most populated regional cities.

Kiama-Shellharbour’s Property Market: Affordability

Kiama-Shellharbour’s rental affordability has remained in the overvalued (unaffordable) zone throughout the period. Sales affordability has also remained in this zone for most years, except for 2020 and 2021, when low interest rates temporarily improved borrowing capacity and cash flow support.

With a median house price close to $1 million, Kiama-Shellharbour is sensitive to changes in interest rates.

Over the past 3 years, sales affordability has improved, suggesting local incomes have grown faster than house prices. In contrast, rental affordability has deteriorated over the same period, largely due to extremely tight vacancy rates.

Kiama-Shellharbour’s Property Market Outlook

Over the next 6 to 12 months, we expect:

• Healthy price growth: House price momentum will likely accelerate as market conditions tighten, supported by declining inventory levels and shorter days on market. However, growth could be constrained by affordability in the high-interest-rate environment.
• Sustained rental strength: Rental conditions are expected to stay strong, with persistently low vacancy rates supporting continued rental growth.

Kiama-Shellharbour is the 22nd regional city we examine in this Market Pressure Review Blog Series. Stay tuned for more cities to follow! InvestorKit is a data-driven buyers’ agency that selects purchase locations using a sophisticated market pressure analysis system. This methodology has enabled our clients to achieve above-average growth and expedite their investment journey. Interested in learning more about InvestorKit’s research and services? Talk to us today by clicking here and requesting your 15-minute FREE discovery call!