Kogarah Property Market Update 1st Half of 2022
In Q1 2022, Kogarah recorded a median house price of $1,632,500, and a median unit price of $670,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 13.4% for houses and a minor price softening of -6.3% for units. Total sales between Q1 2021 – Q1 2022 increased by 4.8% (to 87 sales) for houses and decreased by -46.1% (to 164 sales) for units. Current house owners can benefit from real returns on capital investment, as median price growth is alongside an increase in number of sales. Whereas first home buyers can benefit from a slightly more affordable unit market.
Average vendor discounts between Q1 2021 and Q1 2022 have further swung towards a higher premium of 6.7% for houses. In contrast, it widened to a discount of -1.3% for units. Market conditions in Kogarah continue to favour vendors for houses, as buyers are willing to offer above the initial listing price. Yet unit buyers can benefit from a discount, the most in the past 12 months
House rental yields in Kogarah were recorded at 2.3% as of March 2022, on par with Sydney Metro (2.3%). House rental yields may seem low, due to the annual (Q1 2021 – Q1 2022) median house sale price growth (13.4%) outpacing median house rent price growth (8.3%). That said median house rental price increased reached $650 per week in Q1 2022, while average days to let on the market declined by -7.7% (to 48 days). This confirms there is a resilient rental market in Kogarah.
3+ bedroom houses have provided investors with +7.0% rental growth annually, achieving a median rent of $640 per week.
Kogarah recorded a vacancy rate of 1.7% in March 2022, which is slightly above George Rivers LGA (1.6%) as well as Sydney Metro (1.6%). Vacancy rates in Kogarah have sharply declined since July 2021, which has led vacancy rates to sit well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is an increasingly healthy rental demand and investors can be confident of a conducive investment environment in Kogarah.
