Kogarah Property Market Update 2nd Half 2023
In Q3 2023, Kogarah recorded a median house price of $1,657,000, and a median unit price of $668,000. This represents annual (Q3 2022 – Q3 2023) median price growth of 10.5% for houses and a minor price softening of -0.3% for units. Total sales decreased between Q3 2022 – Q3 2023, by -8.0% (to 46 sales) for houses and by -3.3% for units (to 59 sales). This suggests there is a market undersupply, which created a buffer against cash rate hikes, creating a resilient market and continuous price growth. That said the unit market have become slightly more affordable, creating an opportunity for buyers.
Average vendor discounts between Q3 2023 and Q3 2023 have swung from a discount to a premium of 6.3% for houses and tightened to a lower discount of -1.2% for units. Market conditions in Kogarah have continued to favour sellers, as buyers must either offer above the first list price (houses) or closer to it (units).
House rental yields in Kogarah were recorded at 2.0% as of September 2023, below Sydney Metro (2.7%). House rental yields may seem low, this is due to annual (Q3 2022 – Q3 2023) median house sale price growth (10.5%) being on par with median house rent price growth (11.4%). That said median house rental price increased to $780 per week in Q2 2023, while average days to let on the market declined by -4.5% (to 21 days). This confirms there is a resilient rental market.
4+ bedroom houses have provided investors with +9.6% rental growth annually, achieving a median rent of $800 per week.
Kogarah recorded a vacancy rate of 1.2% in September 2023, which is slightly below Sydney Metro’s 1.3% average. Vacancy rates in Kogarah have sharply declined since July 2021, which has led vacancy rate 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, with quicker occupancy of rental properties, and investors can be confident of a conducive investment environment in Kogarah.
