Dapto Property Market Update 2nd Half of 2022
In Q3 2022, Dapto recorded a median house price of $822,500. This is an annual (Q3 2021 – Q3 2022) 9.7% median price growth. That said, on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median house price softened by -3.0%. Total house sales decreased annually and quarterly, with Q3 2022 recording 122 sales. The unit market recorded a 6.8% median price growth annually and 4.3% quarterly, whilst also recording lower sales. A decline or lower price growth despite undersupply of stock reflects interest rate hikes translating into the market. There are new opportunities for first home buyers.
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly swung to a discount for both property types, of -4.4% (house) and -2.2% (units). This in contrast compared to 6 to 12 months prior, where a premium was the market norm. Market conditions in Dapto have now shifted to favour buyers, as vendors are willing to accept below the first listing price.
In September 2022, house rental yields in Dapto were recorded at 4.0%. In the 12 months to Q3 2022, median house rental price grew significantly, by 9.1% to reach $600 per week. In this time the number of houses rented grew by 36.6% and average days to let remained low at 15 days. The same pattern is evident in the unit rental market. Overall, this represents a resilient rental market in Dapto, which has a more affordable investment entry price compared to Sydney Metro.
3 bedroom houses have provided investors with +12.2% rental growth annually, achieving a median rent of $550 per week.
Dapto recorded a vacancy rate of 0.4% in September 2022, which is well below Sydney Metro’s 1.6% average. Vacancy rates in Dapto have held steady over the past 18 months, sitting within the 0.5% rate band. This is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker rental occupancy. These key indicators create a conducive and sustainable environment for investors, particularly with a median property price downturn in Q2-Q3 2022.
