Kiama
Investment Score
78
/100
AI Intelligence Summary
Kiama is a picturesque coastal town in NSW's Illawarra region, renowned for its famous blowhole and heritage charm. Located 120km south of Sydney, it attracts families, retirees, and sea-change migrants seeking a relaxed coastal lifestyle with excellent amenities. The town features beautiful beaches, quality schools including Kiama High School, and strong community events like the annual Jazz & Blues Festival. Property demand remains robust due to lifestyle appeal and limited supply, with heritage overlays protecting the town's character but constraining development. The market shows resilience with ocean-view properties commanding premium prices. Transport connectivity via the Illawarra railway line and Princes Highway provides good access to Sydney and Wollongong. The demographic profile skews toward older residents and families, creating a stable, family-friendly community with active local organizations and heritage tourism industry.
Strengths
- •Prime coastal location with famous blowhole attraction
- •Strong heritage character and tourism appeal
- •Quality educational facilities and community amenities
- •Excellent transport links to Sydney via rail and road
Opportunities
- •Growing sea-change migration trend
- •Tourism industry expansion potential
- •Heritage tourism development
- •Coastal protection infrastructure investment
Considerations
- •Heritage and environmental development constraints
- •Limited land supply for new housing
- •Higher cost of living due to coastal premium
- •Seasonal tourism fluctuations
Property Market
$1.25M
+8.5% 1yr
$720K
+6.8% 1yr
$950K
$780/wk
$560/wk
42
1.8%
72.0%
Price Growth
| Type | 1 Year | 3 Year | 5 Year |
|---|---|---|---|
| House | +8.5% | +28.2% | +45.8% |
| Unit | +6.8% | +24.5% | +38.2% |
Rental Yields
House Yield
3.2%
Unit Yield
4.1%
Townhouse Yield
3.6%
Investment Scorecard
Demand/Supply Ratio: 1.80
Demand exceeds supply — favourable for sellers
Tax & Financial Intelligence
CPA-grade analysis for Kiama at median house price
+8% surcharge
$780/wk
Negatively geared
Reduces taxable income
~$653/week
Based on 9.2% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR
5-Year Hold
10-Year Hold
Investor Quick Summary
Entry cost (stamp duty)
$51,140
After-tax yield
1.95%
Weekly holding cost
$653/wk
10yr CGT (est.)
$330,630
Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.
Demographics
13,500
47
$78K
per annum
68.0%
42.0%
35.0%
4.2%
22.0%
Dwelling Mix
Lifestyle & Community
35
12
1
120.0 km
Nearest Station: Kiama Station
Coastal living with beaches, heritage attractions, community festivals, golf course, and excellent recreational facilities
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Data sourced from multiple sources. Last updated 27 March 2026.