Loftus is an established residential area, with some parklands and military land use. Bounded by the southern edge of Prince Edward Park and First Avenue in the north, the Old Princes Highway in the east, the Princes Highway in the south and Fahy Creek in the west, Loftus is named after Lord Augustus Loftus, former Governor of NSW.

Settlement of the area dates from the mid 1800s, although growth was minimal until the 1880s when the Loftus Junction was constructed for the branch railway to Royal National Park. Loftus was originally a large tram yard with the rail tracks going across the highway. Residential subdivision did not occur until 1923. Development was slow until the 1950s, when most of the current dwelling stock was constructed. The population increased substantially during the early 1990s, and then declined marginally from 1996, a result of little change in dwelling stock and a decline in the average number of persons living in each dwelling.

Major features of the area include TAFE NSW Sydney Institute - Sutherland College (Loftus Campus), University of Wollongong Loftus Education Centre, Camp Wanawong, Tramway Museum, Army Reserve land and one school.

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