Kingsgrove Property Market Update 1st Half 2023
In Q1 2023, Kingsgrove recorded a median house price of $1,475,000, and a median unit price of $666,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -6.3% for houses and a median price growth of 0.9% for units. However, on a quarterly basis (Q4 2022 – Q1 2023) median house price grew by 4.4%. Thus, whilst cash rate hikes did translate into the market, consumer confidence has returned. House sales declined by -8.8% in the past 12 months, thus recent price growth is due to an undersupply of stock. For those looking for a more affordable house market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 for houses have increased to a higher premium of 6.0% (from 5.0%), and in contrast widened to a higher discount of -2.0% (from -1.2%). House sellers can now achieve a final price above the first list price, like 12 months ago. Thus, the house market has seen a return to pre-cash rate hike market conditions.
House rental yields in Kingsgrove was 2.7% in March 2023, slightly below Sydney Metro (2.9%). That said median house rental price increased by 26.8% (to $780 per week) in the past 12 months to Q1 2023, and a -0.6% decrease in the number of houses rented (to -0.6%); indicating an undersupply. Average days on the market remained at a low 22 days. The same pattern can be seen in the unit rental market, thus confirming a resilient rental market in Kingsgrove.
4+ bedroom houses have provided investors with +23.3% rental growth annually, achieving a median rent of $925 per week.
Kingsgrove recorded a vacancy rate of 0.7% in March 2023, below Sydney Metro’s 1.3% average. This indicates quicker occupancy rates. Vacancy rates in Kingsgrove have declined for the past 18 months, siting well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and currently at a historical low. This creates a conducive and sustainable environment for investors, even if median house prices have started to normalise in the past quarter (Q4 2022 – Q1 2023).
