Kingsgrove Property Market Update 2nd Half 2023
In Q3 2023, Kingsgrove recorded a median house price of $1,600,000, and a median unit price of $755,000. This represents annual (Q3 2022 – Q3 2023) growth of 6.7% for houses and 18.3% for units. Total sales increased between Q3 2022 – Q3 2023, by 13.1% (to 138 sales) for houses and by 42.1% (to 81 sales) for units. Higher prices alongside an increase in sales volume suggest confidence has returned to Kingsgrove, with properties in high demand. This has created a buffer against successive cash rate hikes and current economic conditions, establishing Kingsgrove as a highly resilient market.
Average vendor discounts between Q3 2022 and Q3 2023 have fluctuated for houses, but still at a premium, of 3.2%. It has swung from a discount to a premium for units, of 0.7%. Kingsgrove market conditions have now shifted to favour sellers, as buyers must be willing to offer above the first list price. Now is the time to sell.
House rental yields in Kingsgrove was 2.6% in September 2023, on par to Sydney Metro (2.7%). This was paired with a 15.1% increase in median house rental price in the past 12 months to Q3 2023, to $800 per week, and a -17.6% decline in the number of houses rented (to 168 houses). The same pattern can be seen in the unit market, which suggests a highly demanded and undersupplied rental market, in good news for investors.
2 bedroom houses have provided investors with +30.0% rental growth annually, achieving a median rent of $650 per week.
Kingsgrove recorded a vacancy rate of 0.5% in September 2023, well below Sydney Metro’s 1.3% average. Vacancy rates in Kingsgrove have continued to decline in the past 12 months, indicating an increasingly tighter rental market. This suggests quicker occupancy of rental properties, thus a more steady income cash flow. These key indicators create a conducive and sustainable environment for investors, despite the increase in median property sale prices in the past 12 months to Q3 2023.
