Oatley Property Market Update 1st Half 2023
In Q1 2023, Oatley recorded a median house price of $1,700,000, and a median unit price of $580,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -6.9% for houses and a price softening of -12.8% for units. Quarterly (Q4 2022 – Q1 2023) however median house price grew by 1.2%. This suggests cash rate hikes did translate into the market; however, consumer confidence have returned. House sales did decline in the past 12 months, by -18.8%, thus an undersupply is evident. For those looking for a more affordable market, especially houses, time is of the essence
Average vendor discounts between Q1 2022 and Q1 2023 have rapidly swung to a discount of -6.8% for houses and widened to a higher discount of -2.5% for units. Market conditions in Oatley have now shifted to favour buyers, with Q1 2023 recording the highest average house vendor discount in the past 6 quarters.
House rental yields in Oatley was 2.5% in March 2023, slightly below Sydney Metro (2.9%). That said, median house rent price increased by 8.1% (to $850 per week) in the past 12 months to Q1 2023 and the number of houses rented declined by -20.0%; indicating an undersupply. Average days to let remained a low 17 days. The same pattern can be seen in the unit rental market, thus confirming a resilient rental market in Oatley.
4+ bedroom houses have provided investors with +25.0% rental growth annually, achieving a median rent of $950 per week.
Oatley recorded a vacancy rate of 0.5% in March 2022, which is below Sydney Metro’s 1.3% average. Vacancy rates in Oatley have continued to decline in the past 12 months, bringing it to a historical low. This indicates an increase in rental demand. These key indicators create a conducive and sustainable environment for investors, even if consumer confidence has returned to the market and median house prices have started to normalise in the past quarter (Q4 2022 – Q1 2023).
