Kogarah Property Market Update 2nd Half of 2021

In Q3 2021, Kogarah recorded a median house price of $1,660,000, and a median unit price of $680,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 32.3% for houses and a price softening of -0.7% for units. Between Q3 2020 – Q3 2021 total sales in both markets slowed, down by -29.3% for houses (to 58 sales) and by -13.8% for units (to 213 sales). The house market is significantly undersupplied, with price growth combined with less sales volumes. Now is an ideal time for house owners to sell, whereas first home buyers can benefit from a slightly more affordable unit market.

Average vendor discounts between Q3 2020 and Q3 2021 have further swung towards a higher premium of to 7.8% for houses and tightened to -2.2% for units. House market conditions in Kogarah have now shifted heavily to favour sellers, whilst unit buyers can still benefit from a slight discount. The disparity between houses and units in Kogarah is increasing.

In September 2021, unit rental yields in Kogarah were recorded at 3.1%. In 2021 Kogarah has seen a significant increase in new unit supply, in which renters are paying a premium price. On the other hand, median rental price of existing (older) unit stock in the area has seen up to -20.0% decline in Q3 2021. The average days on the market to let unit rentals has declined by -35.5% (to 29 days), which suggest there is higher demand.

1 bedroom units have provided investors with 0.0% rental growth annually, with a median rent of $400 per week.

Also in September 2021, Kogarah recorded a vacancy rate of 4.1%, above that of Georges River LGA (3.1%) and Sydney Metro (2.7%). Vacancy rates in Kogarah have recorded a declining trend since December 2020, however, still sit above the Real Estate Institute of Australia’s healthy benchmark of 3.0%. There is increasing rental demand in the area, however investors in Kogarah may wish to sign tenants to longer term leases in order to have increased security of cashflow.