Dapto Property Market Update 1st Half 2025
Nestled of the western shores of Lake Illawarra, Dapto is a suburb of Wollongong in New South Wales. The suburb blends natural beauty with rich local history and is known for its family-friendly vibe, scenic parks and many events, with easy access to Sydney.
Property Trends
In Q1 2025, Dapto recorded a median house price of $830,000 and a median unit price of $740,000. This is an annual (Q1 2024 – Q1 2025) price growth of 2.5% for houses and 18.4% for units. Comparing Q1 2024 and Q1 2025, total sales increased by 11.3% (to 168 sales in Q1 2025) for houses and by 115.8% (to 41 sales to Q1 2025) for units. This confirms a highly demanded market, with Q1 2025 sales figures hitting record high. This created a buffer against higher interest rates and underpinned high price growth, making now an ideal time for owners to capitalise on their investments. The gap between median house and unit prices are closing, thus now is an ideal time for unit buyers to act.
Project Development
Dapto will see approx. $353.4 M of new projects commencing in 2025-2026; including 50 dwellings, 109 units, 17 townhouses and 885 lots planned for construction. New ready-to-sell housing stock in the pipeline will assist with answering market demand, which can create a more sustainable price growth. That said, the number of houses planned is not enough (50 dwellings vs 168 house sales in Q1 2025), and land lots require time to develop. Thus, in the short-term, higher prices are likely.
Rental Market & Growth
House rental yields in Dapto were 4.1% as of March 2025, higher than the Wollongong LGA (3.3%) and Sydney Metro (2.7%). Furthermore, the median house rental price increased by 7.9% in the past 12 months to Q1 2025, at $680 per week. In the same timeframe the number of houses rented decreased, by -16.8% (to 79 houses) in Q1 2025, suggesting an undersupply. The unit rental market shows a similar pattern, with stable median unit rental price. This indicates a highly demanded and competitive rental market in Dapto, which is beneficial to investors.
Vacancy Rates & Property Investment
Dapto recorded a vacancy rate of 0.4% in March 2025, slightly below Wollongong LGA average of 0.6% and well below Sydney Metro’s 1.3%. Vacancy rates remained relatively steady in the past 12 months. Furthermore, a 0.4% vacancy rate is still below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental homes in Dapto. This suggests a conducive environment for investors, even with a higher house and unit sales (and thus, entry price) in Q1 2025. .
