Kogarah Property Market Update 1st Half 2025
Kogarah is a vibrant suburb located in the St George area of Sydney, about 17km from the CBD. Kogarah blends residential, commercial and light industrial zones with plenty of amenities and great transport links. This makes Kogarah a great suburb to live in.
Property Trends
In Q1 2025, Kogarah recorded a median house price of $1,865,000 and a median unit price of $720,000. This represents annual (Q1 2024 – Q1 2025) median price growth of 14.6% for houses and 1.8% for units. Comparing Q1 2024 and Q1 2025, total sales declined by -5.0% (to 76 sales) for houses and grew by 2.6% (to 275 sales) for units. There is an undersupply in the house market, whilst the unit market is highly demanded. Combined, this created a buffer against higher interest rates (hence price growth). The increase in unit sales combined with price growth is due to low house stock, as buyers pivot from looking for a house to a unit.
Project Development
Kogarah plans to see approximately $258.8M of new projects commencing in 2025. There are a number of mixed-use and pure residential projects in the pipeline, due to add approximately 506 units/apartments to the market. This helps with some of the current demand, but not all. There are no new stand-alone houses planned for 2025, which suggests that the current undersupply will continue. This will push prices up even further for the remainder of 2025, not only for houses but for all stock types.
Rental Market & Growth
House rental yields in Kogarah were 3.1% as of March 2025, slightly below the Georges River LGA (3.6%) but higher than Sydney Metro (2.7%). Median house rental price decreased by -3.5% in the past 12 months to Q1 2025, at $820 per week, whilst the number of houses rented increased by 3.3% (to 124 houses) in Q1 2025. Median unit rental price increased by 3.1% during this time, to $670 per week, whilst the number of units rented increased by 16.5%. This indicates an opportunity for unit investors.
Vacancy Rates & Property Investment
Kogarah recorded a vacancy rate of 1.2% in March 2025, below the Georges River LGA average of 1.9% and Sydney Metro’s 1.3%. Vacancy rates have fluctuated in the past 12 months due to the number of investors returning to market. That said, a 1.2% vacancy rate is still well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in Kogarah. Thus, a conducive investment environment exists, even if the entry (house and unit sales) prices have increased in the past 12 months to Q1 2025.
