Wollongong short-term rental market report 2026

By MadeComfy

Professionally managed two-bedroom short-term rentals in Wollongong generated an estimated $66,700 a year, compared with $31,200 from the area's median long-term rent. Even after allowing for management on both sides, that is a substantial income difference for an investor to explore.

Our outlook for 2026 is positive. Wollongong has the beaches, but it also has a working city behind them: business visitors, university connections, hospital stays and events give furnished homes reasons to be booked beyond the summer holidays. Further north, the appeal changes. In Thirroul and Austinmer, families and groups will pay for space, comfort and a coastal break they cannot get from a standard hotel room.

For your property, the opportunity is to match that demand with the right offer. This report compares income by bedroom count, looks at the city and coastal suburbs, and shows how much of the short-term advantage could remain after management fees.

Short-term versus long-term rental income in Wollongong

Short-term revenue was higher across every property size in the comparison. One- and two-bedroom homes achieved the strongest occupancy, while larger homes earned more from fewer, higher-value bookings.

Short-term figures are estimated annual gross revenue for professionally managed entire homes in the year to August 2026, including cleaning charges. Long-term figures are Wollongong LGA median new-lease rents from the NSW June 2026 rent tables, annualised over 52 paid weeks. The figures compare regional property groups; an individual home's location, condition and availability will affect both estimates.

What could a two-bedroom owner keep?

The two-bedroom gross income difference is approximately $35,500 a year. After illustrative management allowances, the comparison looks like this:

That leaves approximately $24,300–$26,000 more a year before outside costs. From that difference, allow for any platform charges, cleaning and linen, utilities, insurance, maintenance and furnishing expenses outside your management agreement. Cleaning revenue is included above, so the cleaning bill must also be accounted for. Include separate letting fees and vacancy when assessing the long-term option.

These are management allowances, not a fee quote. Mortgage repayments, tax and other ownership costs remain separate.

What if your apartment could command a higher long-term rent? At $800 a week, a lease would generate $41,600 gross, or approximately $38,300–$38,700 after the long-term management allowance. The short-term benchmark would still leave a difference of $14,700–$16,400 before outside costs. A premium long-term appraisal can narrow the gap without closing it.

Use a current appraisal for your own home on both sides. A renovated beachside apartment should be compared with similar accommodation, whether you are considering a lease or short stays.

The property market behind the income figures

Investors are making this decision against rising rents and more expensive debt. Wollongong's median new-lease rents increased by about 3.4% for two-bedroom homes and 7.1% for three-bedroom homes over the year to June. Two-bedroom rents were steady in the latest quarter, so the annual increase has not translated into an uninterrupted climb.

Supply remains tight. Colliers' 2026 Wollongong Apartment Report recorded a 0.71% CBD vacancy rate in the first quarter. It forecast 657 CBD apartment completions in 2026, down from an earlier forecast of 840. For an apartment owner, this supports a strong long-term rental alternative while making the timing and location of new supply worth watching.

Purchase prices also matter. In Dapto, PRD reported a median house price of $983,500 in the first quarter, up 17.1% over the year. That is a local result rather than a Wollongong-wide growth rate, but it underlines the need to assess rental income against today's purchase price.

The RBA's September increase took the cash rate to 4.60%. If passed through in full, that quarter-point rise adds $1,500 a year to interest on a $600,000 interest-only loan. This is where stronger rental income has a practical value: it can improve the cash flow available to service your investment.

Which property sizes suit short stays?

Professionally managed entire homes, year to August 2026. Occupancy is booked nights as a share of available nights; daily rates include cleaning revenue. August booked-listing samples were 9 one-bedroom, 23 two-bedroom, 25 three-bedroom and 24 four-plus-bedroom homes. The smaller one-bedroom sample is more sensitive to individual properties.

One- and two-bedroom homes are the strongest starting point if you want broad appeal. Occupancy of 73% and 70% shows their ability to attract bookings. A secure parking space, proper kitchen, laundry and comfortable work area can make the same apartment useful for a working week or a weekend away.

Three-bedroom homes can accommodate a family without the cost of a much larger holiday house. Assess the living areas as carefully as the bedrooms. Guests need somewhere to eat together, store luggage and spend a wet afternoon; squeezing in another bed can come at the expense of those advantages.

Four-plus-bedroom homes generated about $110,100 despite 47% occupancy. Larger groups can support a higher nightly rate, particularly when a home has enough bathrooms, parking and shared living space. This category includes substantial holiday properties, so match the quality and layout when choosing your comparables.

Across all sizes, annual revenue averaged about $79,800, up 1.9% on the previous year. The four-plus-bedroom benchmark rose 5.6%, while two-bedroom revenue eased 4.3%. Two-bedroom homes still show a substantial advantage over the long-term rent benchmark; the case rests on achievable income today, with further growth a potential upside.

City apartments and the northern beaches need different strategies

There is no single Wollongong guest. A central apartment, a Thirroul weekender and a large coastal home compete for different bookings. The local figures show how that changes the balance between occupancy and price.

Professionally managed entire homes of all sizes. Property mixes differ between suburbs. August booked-listing samples were Wollongong suburb 19, Thirroul 7, Austinmer 5 and East Corrimal 5; the coastal figures should guide comparable-property research, rather than be read as a ranking of equivalent investments.

Wollongong and North Wollongong: make the location work all week

Wollongong suburb combined 68% occupancy with annual revenue of about $80,200. The city's advantage is variety. The harbour and beaches attract leisure visitors, while the CBD, hospital, university and WIN Stadium provide other reasons to stay. Destination Wollongong's city accommodation guide reflects that mix of work and leisure travel.

If you own an apartment here, identify which of those visits it serves best. A guest attending an event may value the walk home; someone staying for work may prioritise parking, Wi-Fi and a quiet bedroom. Show the route and practical advantages in your listing. North Wollongong's beachside addresses deserve their own comparable properties, rather than being assigned the central suburb's income figure.

Thirroul and Austinmer: sell the stay, then price the quieter nights

Thirroul's average daily rate was about $535 at 50% occupancy. It offers more than a beach weekend: the village has restaurants, a beachfront pool and Anita's Theatre, around 600 metres from Thirroul station. For a suitably located home, a concert can provide another reason for a short stay. Check the event calendar when setting prices and minimum nights.

Austinmer achieved about $95,300 in annual revenue, with a lower daily rate of $472 but higher occupancy of 63%. Its coastal setting, including the twin rock pools at Austinmer Beach, helps explain the appeal for a relaxed family break. Little Austinmer Beach, pictured below, is another part of that coastline.

For both villages, the home needs to deliver on the holiday: comfortable bedrooms, outdoor seating, somewhere to share a meal and straightforward beach access. Protect the value of summer weekends, then adjust your midweek and winter offer to attract more bookings. Austinmer's result is a useful reminder that the highest advertised nightly rate is not necessarily the best route to higher annual income.

East Corrimal, Bulli, Woonona and Towradgi: assess the address

East Corrimal's benchmark was about $69,800 a year at 58% occupancy. Corrimal Beach is roughly six kilometres north of the CBD, with a long stretch of sand, grassy reserves and picnic facilities. A home here can offer a quieter coastal base within reach of the city.

That balance is also worth investigating in Bulli, Woonona and Towradgi. For your appraisal, compare the actual beach route, access to shops and transport, parking and the space available for families. The professional samples in those three suburbs were too small for useful published averages. A nearby home with a similar layout is a better guide than borrowing a premium beach house's nightly rate.

Seasonality: protect summer, work on the rest of the year

January generated approximately $10,400 in monthly revenue, more than double June's $4,800. October was also strong. Getting the peak periods right matters, but the quieter months leave room to improve the annual result.

If you plan to use the home yourself, build those dates into your income estimate. Keeping Christmas and January has a different effect from reserving a few winter weekdays. Short-term letting gives you that flexibility; an appraisal should show the income for the availability you actually want to offer.

Occupancy reached about 75% in January and was around 50% in May and June. This is where active management earns its place: reviewing minimum stays, adjusting midweek prices and offering longer-stay rates while there is still time to attract bookings.

Prepare the property for those stays, too. Heating, a good work setup and laundry facilities can make an extended city visit easier. On the coast, comfortable indoor living space gives guests more reason to book when beach weather is less certain.

Our outlook: room for well-run homes to compete

Wollongong City Council has acknowledged an accommodation shortage and is pursuing planning changes to encourage hotel development. More rooms would support the city's visitor economy, although proposed hotels will take time to become operating accommodation.

We see a clear role for furnished homes alongside them. Multiple bedrooms, a kitchen and space to settle in are valuable differences for families, groups and longer visits. For investors, the strongest proposition is a home with a clear audience, priced for the whole year and consistently well presented. Professional management brings the pricing, guest service and property preparation together so that the opportunity translates into bookings.

Can you operate a short-term rental year-round in Wollongong?

Eligible properties can operate throughout the year. Wollongong is outside the NSW areas with a 180-day limit on non-hosted short-term rental accommodation. That gives you scope to combine summer holidays, weekends and longer stays in one annual strategy.

Under the NSW short-term rental framework, confirm eligibility, registration and annual renewal, fire-safety requirements and the code of conduct. For an apartment, check strata by-laws and development-consent restrictions before furnishing. Once those checks are complete, you can plan around the home's permitted availability.

Wollongong investor questions

Is Airbnb more profitable than a long-term lease in Wollongong?

The income benchmarks favour short-term letting across all four property sizes, and the two-bedroom example retains a sizeable difference after management allowances. Your profit will depend on the bookings and rent your own home can achieve, alongside its outside costs. Start with both appraisals and compare the remaining income.

Can a studio work as a short-term rental?

A studio with a useful location and comfortable layout can suit couples or solo visitors. Only one professionally managed studio was available in the sample, so there is no reliable benchmark to publish here. Assess comparable studios individually.

Does this report include Shellharbour and Kiama?

No. These comparisons cover the Wollongong market and Wollongong LGA rents. Shellharbour and Kiama have different property mixes and holiday markets.

What could your Wollongong property earn?

Use the income calculator below for an initial monthly gross revenue estimate. Then bring a current long-term appraisal and your preferred availability to the comparison.

Our Wollongong short-term rental management team can help you assess the home's earning potential, the costs outside management and what it needs to welcome guests. You will have a clearer picture of the income opportunity before deciding how to let it.