Kogarah Research Factsheet 2nd Half 2017
The Kogarah property market witnessed a record-setting median house price of $1,458,500 and $683,900 for units in Q3 2017, resulting in exceptional double digit annual growth figures of 12.8% and 10.3% respectively. In comparison, houses in the Georges River Council area grew by 2.3% to $1,355,000 and units by 5.1% to $686,000. Kogarah proves itself to be a premium market when compared to wider LGA, both in terms of selling price and capital growth.
The Kogarah property market witnessed a record-setting median house price of $1,458,500 and $683,900 for units in Q3 2017, resulting in exceptional double digit annual growth figures of 12.8% and 10.3% respectively. In comparison, houses in the Georges River Council area grew by 2.3% to $1,355,000 and units by 5.1% to $686,000. Kogarah proves itself to be a premium market when compared to wider LGA, both in terms of selling price and capital growth. Kogarah has the infrastructure and proximity to Sydney CBD, fit for commercial activities looking to shift away from high commercial costs of Sydney CBD. This has stimulated the local property market, without any signs of slowing down. Thus now is the perfect time to enter the market.
The rental market is also extremely attractive to investors, with median house rental prices increasing by 10.0% over the past 12 months to Q3 2017, to $660 per week. Units have also increased, by 3.1% to $495 per week. Vacancy rates is at a low at 1.2% in October 2017, especially when compared to Sydney’s 1.9%. Astute investors are benefitting from a rental yield of 2.4% for houses and 3.2% for units.
Kogarah is set to see approx. $187.6M of new projects commencing and/or completing in 2017. Mixed use project account for the majority 70.4%) followed by residential (17.5%). It is clear that there is a focus in increasing stock, balanced with commercial activity to stimulate local job creation and economic growth.
A key mixed-use development is the Kogarah RSL Club Mixed Development – Veridian ($83.0M). This will construct two 11 storey buildings and add a total of 220 units to the Kogarah market. This will accompanied by retail and commercial opportunities such as the RSL Club.
There are 2 key commercial projects: the Endeavour Nursing Home Kogarah and Homewood Care Faculty, both of which will bring a new unique demographic to Kogarah and create local jobs. This will have a positive effect on the property market – both in the short and long term.
Overall Kogarah plans to add 423 units and 16 townhouses between 2nd half 2016 and 2017, spread over 5 mixed-use and 5 residential developments.
