Wollongong commercial property surges 60 per cent as investors flee residential
Commercial property sales in Wollongong surged to $250 million in 2025, as tax changes pushed investors away from residential property.
Wollongong recorded nearly $250 million in commercial property sales last year, the highest volume since 2021 and a 60 per cent jump from the previous year. Federal budget changes to capital gains tax and negative gearing rules made this happen.
These rules made residential property less attractive to investors. Regional commercial property sales across Australia reached $6.2 billion in 2025.
This is about 11 per cent of national volumes. In Wollongong, retail deals led at $192 million.
Industrial sales came next at roughly $29 million. Office sales were roughly $28 million.
Wollongong is attracting investors because of rapid growth in services industries. Professional services, construction and healthcare are growing fast.
Strong population growth also helps. Investors are now actively seeking commercial assets.
They want reliable income yields. Future growth is expected to accelerate.
BlueScope's $2 billion Land Transformation project will develop 200 hectares in Port Kembla.
- $250 million
- Commercial sales 2025
- 60 per cent
- Year-on-year increase
- 2021
- Highest volume since
- $6.2 billion
- Regional Australia commercial total
Why it mattersTax rule changes are shifting where Australians invest. Regional commercial property is now more attractive to investors than home ownership.
AustraliaAustralian property investors are redirecting capital toward regional commercial markets like Wollongong, changing regional development and creating new business opportunities.
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