All Suburbs

Kiama

NSW 2533LGA: Kiama Municipal

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

Median House

$1.25M

+8.5% 1yr

Median Unit

$720K

+6.8% 1yr

Median Townhouse

$950K

Rent (House)

$780/wk

Rent (Unit)

$560/wk

Days on Market

42

Vacancy Rate

1.8%

Auction Clearance

72.0%

Price Growth

Type1 Year3 Year5 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

Overall Investment Score78/100
Growth Potential75/100
Cashflow Score65/100
Risk Score (lower = safer)72/100
Affordability Index45/100

Demand/Supply Ratio: 1.80

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Kiama at median house price

Standard transfer
$51,140
First Home Buyer
$51,140
Foreign buyer surcharge
$100,000

+8% surcharge

Annual rent income
$40,560

$780/wk

Interest (80% LVR @ 6.5%)
-$65,000
Other expenses (~2.5%)
-$31,250
Net rental position
-$55,690

Negatively geared

Tax benefit (39% MTR)
+$21,719

Reduces taxable income

After-tax holding cost
$33,971/yr

~$653/week

Based on 9.2% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$1.94M
Capital gain
$630,047
After discount
$315,024
CGT payable
$122,859

10-Year Hold

Est. value
$3.00M
Capital gain
$1.70M
After discount
$847,770
CGT payable
$330,630

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

Population

13,500

Median Age

47

Median Income

$78K

per annum

Family Households

68.0%

Professionals

42.0%

University Educated

35.0%

Unemployment

4.2%

Born Overseas

22.0%

Dwelling Mix

Houses: 72%Units: 22%Townhouses: 6%Total: 5,800

Lifestyle & Community

Walkability75/100
Public Transport7/10
Schools Rating8/10
Safety9/10
Family Friendly9/10
Cafes & Restaurants

35

Parks

12

Hospitals

1

Distance to CBD

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.

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