Kogarah Property Market Update 2nd Half of 2022
In Q3 2022, Kogarah recorded a median house price of $1,460,000, and a median unit price of $662,000. This represents annual (Q3 2021 – Q3 2022) median price growth of -9.9% for houses. Total house sales increased by 9.1% annually but softened by -26.8% over the 6-month period to Q3 2022, to 60 house sales. Despite this, median house price growth slowed, by -14.1% in the past 6 months. This reflects interest rate hikes translating into the market. Likewise for the unit market, where annual (Q3 2021 – Q3 2022) median price growth softened by -1.2% and total sales declined by -23.8% (to 128 sales).
Average house vendor discount between Q3 2021 and Q3 2022 have rapidly swung to a discount of -0.8%. A discount for houses has not occurred in Kogarah for the past 24 months, thus this creates new opportunities for first home buyers. Average unit vendor discount has widened to a larger discount of -3.7% for units, which confirms that market conditions have now shifted to favour buyers, as vendors are willing to accept below the first listing price.
In September 2022, house rental yields in Kogarah were recorded at 2.5%. In the 12 months to Q3 2022, median house rental price grew by 12.5% to reach $720 per week. In this time the number of houses rented grew by 18.6% and average days to let declined -19.2%. The same pattern is evident in the unit rental market, indicating high rental demand.
4+ bedroom houses have provided investors with +13.3% rental growth annually, achieving a median rent of $850 per week.
Kogarah recorded a vacancy rate of 1.0% in September 2022, which is below Sydney Metro’s 1.6% average. Vacancy rates in Kogarah is at the lowest point since 2017, after being on a declining trajectory since early 2022. This indicates quicker occupancy of rental properties. Further, vacancy rates in Kogarah have remained well below the Real Estate of Institute of Australia’s healthy benchmark of 3.0% for the past 10 months. Investors can be confident of a highly conducive investment environment in the area, particularly with median house price downturn in the past 6 months to Q3 2022.
