Dapto Property Market Update 1st Half of 2021

In Q1 2021, Dapto recorded a median house price of $651,000, and a median unit price of $535,000. This represents annual (Q1 2020 – Q1 2021) median price growth of 6.7% for houses and 4.1% for units. Between Q1 2020 and Q1 2021 total sales slowed for both markets, by -1.7% for houses (to 113 sales), and by -9.5% for units (to 19 sales). Median price growth because of less sales indicate a potential undersupply in the market, an opportune time for owner-occupiers and residential developers looking to benefit from a highly demanded market.

Average vendor discounts between Q1 2020 and Q1 2021 have swung to a premium for houses, at 1.7%. It has for units, to -2.1%. House market conditions have now shifted to favour vendors, as buyers are willing to offer above the initial listing price. Unit buyers can still benefit from a discount; however, time is limited.

In March 2021, house rental yields in Dapto were recorded at 3.7%. In the 12 months to Q1 2021, the median house rental price has softened by -2.0% to sit at $480 per week, however average days on the market declined by -31.3% (to just 15 days). Overall, this suggests Dapto has proven a relatively resilient rental market throughout COVID-19.

3 bedroom houses have provided investors with +4.4% rental growth annually, achieving a median rent of $470 per week.

Also in March 2021, Dapto recorded a very low vacancy rate of 0.7%, on-par with Wollongong LGA (0.7%) and well below Sydney Metro (3.4%). Vacancy rates in Dapto have continued a declining trend since December 2019 and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 conditions. This confirms there is an increasingly healthy rental demand, creating conducive investment environment in Dapto.