Kingsgrove Property Factsheet 2nd Half of 2018
In the 12 months prior to Q3 2018, the Kingsgrove property market saw median house prices soften by -12.1% to $1,195,500 and unit prices strengthen by 4.7% to $672,500. By comparison, annual (Q1 2017-Q1 2018) median price growth of 3.2% (house) and -3.9% (units) was reported in the Kingsgrove 1st Half 2018 Research Factsheet. This suggests that houses in Kingsgrove have recently increased in affordability while units have increased in value.
By comparison, the combined Georges River, Canterbury – Bankstown, and Bayside Local Government Area (LGA) experienced a softening in median house price, by -18.3% to $980,000 over the 12 months to Q3 2018. The unit market also experienced a softening, of -4.5% to $635,000. Compared to the LGA both house and unit in Kingsgrove are premium markets based on entry price and are more resilient markets based on capital price growth.
Rental activity over the 12 months to Q3 2018 increased, with the number of properties rented increasing by 50.0% (house) and 41.9% (units). Vacancy rates in Kingsgrove were at a healthy 2.6% in June 2018, remaining slightly below the Sydney Metro average of 2.7%. This indicates a healthy rental demand and ensure positive investment opportunities in Kingsgrove.
Kingsgrove is set to invest approximately $69.2M in future development in the 2nd half of 2018, 85.7% of which is dedicated to commercial projects. A commercial focus is important for Kingsgrove, as all planned additional property stock are pure residential projects. Commercial projects will increase economic activity in the area and support local job growth, providing sustainability in the future economic growth of Kingsgrove.