Panania Research Factsheet 2nd Half 2017

The Panania property market recorded a median house price of $1,081,500 and $775,000 for units in Q3 2017, representing an annual price growth of 13.2% and 6.7% respectively. Over the same period of time (Q3 2016-Q3 2017) the Canterbury-Bankstown local government area (LGA) witnessed a lower annual price growth for houses of 11.3% to $1,030,000; confirming Panania’s housing market as a premium market – attracting higher pricing and achieving higher capital growth. Panania’s* unit market proves to be in extremely high demand, suggesting the need for more high quality stock to be developed. 

Over the past 12 months to Q3 2017 average vendor discounts have pivoted to positive levels for units (to 0.8%), whereby buyers are increasingly willing to offer above the initial listing price to secure their property. This is the most that unit buyers have had to offer over the first list asking price, further confirming an under supplied market.

Median rents have improved over the past 12 months to Q3 2017, by 6.5% to $586 for houses and 7.3% to $590 for units. This is accompanied by an increasing amount of properties being rented (for both house and units), which suggests a high demand rental market. This is confirmed by low vacancy rates of 1.2% in October 2017, good news for astute investors.

Panania is set to see approx. $37.1M of new developments commencing in 2017. Infrastructure projects accounted for the majority (65.1%), totaling an estimated $24.1M of projects. The local council is focused on in increasing liveability of current and future residents, whereas the state government will add more affordable housing options for renters and seniors.

Adding private market residential stock drives a smaller proportion of future projects value, however there are two pure residential projects – the Doyle Rd Townhouses and Villas, and the Ely St Villas – which will add a total of 10 villas and 2 townhouses into the market. A key project to add stock is the Maclaurin Avenue Mixed Use development ($6.6M), which will add 26 units and is planned to commence construction in late 2017.