Kingsgrove Property Update 2nd Half of 2020
In Q3 2020, Kingsgrove recorded a median house price of $1,150,000, and a median unit price of $609,500. This represents annual (Q3 2019 – Q3 2020) median price growth of 0.4% for houses and a minor price softening of -1.7% for units. Between Q3 2019 – Q3 2020 sales slowed, by -8.3% for houses (to 122 sales) and by -6.7% for units (to 70 sales). Median prices have shown relative stability despite COVID-19 conditions, and a slowdown in market activity. This creates a good opportunity to transact property in Kingsgrove.
Average vendor discounts between Q3 2019 and Q3 2020 have further increased in premium for houses, to 2.0%, and tightened to -1.3% for units. Kingsgrove market conditions have now shifted to favour sellers, where buyers either have to offer higher than the first list price (house) or closer to it (units).
In September 2020, house rental yields in Kingsgrove were recorded at 2.0%. In the 12 months to Q3 2020, the median house rental price increased to $620 per week, while average days on the market declined by -13.8% (to 25 days). Overall, this suggests Kingsgrove has remained a resilient rental market throughout COVID-19.
2 bedroom houses have provided investors with +1.0% rental growth annually, with a median rent of $505 per week.
Also, in September 2020, Kingsgrove recorded a vacancy rate of 2.0%; below that of Canterbury-Bankstown LGA (2.4%) and well below Sydney Metro (3.5%). Vacancy rates in Kingsgrove also remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and have travelled on a declining trend even amidst COVID-19 conditions. This confirms there is a healthy ongoing rental demand in Kingsgrove, benefitting investors.