Katoomba Property Market & Buyers Agents 2026

The Katoomba property market represents a dynamic and mature segment of the Blue Mountains region, balancing its identity as a major tourist destination with a thriving residential community. As of May 2026, the median house price sits at $890,000, with units at a more accessible $620,000. The market has demonstrated resilience and consistent demand, evidenced by a 4.7% year-on-year growth for houses. The key driver for the market is the persistent 'tree-change' trend, with buyers from Sydney seeking a more relaxed lifestyle, greater affordability, and a connection to nature without sacrificing amenities. This influx of city-driven capital has put steady upward pressure on prices over the past five years. The unit market has seen particularly strong recent growth, jumping 24% in the last year, suggesting a rising interest in lower-maintenance living and investment properties catering to the tourism and rental markets. Supply in Katoomba is naturally constrained by geography, with the national park limiting outward expansion. This scarcity of new land, combined with a stock of heritage and character homes, helps to preserve value. Properties with unique features, such as escarpment views or proximity to the town centre, command significant premiums.

Days on market are relatively low for a regional centre, averaging around 40 days, indicating that well-priced properties are absorbed efficiently. Rental yields for houses are solid at 3.8%, appealing to investors looking for a combination of capital growth and steady income, buoyed by both a permanent rental population and the lucrative short-term holiday letting industry. While the market's growth has moderated from the frantic peaks seen during the pandemic, the fundamental drivers of lifestyle appeal and limited supply suggest a stable and promising long-term outlook.

As the principal town of the Blue Mountains, Katoomba offers a unique lifestyle defined by its spectacular natural surroundings and vibrant community. Nestled within a UNESCO World Heritage Area, it is famed for landmarks like the Three Sisters at Echo Point and the Scenic World attractions. Education is well-catered for with several local schools, including Katoomba Public School, Katoomba North Public School, St Canice's Primary School, and the regional Katoomba High School. The suburb is a central hub for transport. Katoomba Railway Station is a major stop on the Blue Mountains Line, offering regular intercity services to Sydney's Central Station, with the journey taking approximately two hours. The Great Western Highway is the main arterial road connecting the town to Sydney and Lithgow. Local bus services operated by Blue Mountains Transit provide connectivity to surrounding villages and attractions. Katoomba's town centre along Katoomba Street is a bustling precinct filled with a diverse array of cafes, restaurants like the historic Paragon Cafe, and unique retail stores including antique shops and book sellers. For groceries and essentials, residents have access to major supermarkets. The area is rich in parks and green spaces, with over 45 parks covering nearly a quarter of the suburb, offering endless opportunities for bushwalking, rock climbing, and simply enjoying the fresh mountain air.