Panania Property Market Update 2nd Half of 2020

In Q3 2020, Panania recorded a median house price of $990,000, and a median unit price of $831,500. This represents annual (Q3 2019 – Q3 2020) median price growth of 4.2% for houses and a 14.7% for units. Between Q3 2019 – Q3 2020 total house sales softened, by -29.2% (to 126 sales), while units remained stable (47 sales). Less house sales could be due to low stock on the market, which when combined with median price growth suggests an undersupply. Overall an increase property prices contrast with general COVID-19 predictions, thus there is high resilience in the Panania market.

Average vendor discounts between Q3 2019 and Q3 2020 have swung to a premium of 1.5% for houses, and to a discount of 2.9% for units. House market conditions in Panania have now shifted to favour vendors, as buyers are willing to offer above the initial listing price. Unit buyers can now benefit from a discount, thus an ideal time to enter the market.

In September 2020, house rental yields in Panania were recorded at 2.9%. In the 12 months to Q3 2020, the median house rental price increased to $545 per week, while average days on the market declined by -25.0% (to 21 days). Overall, this suggests Panania has proven a resilient rental market throughout COVID-19.

2 bedroom houses have provided investors with +3.6% rental growth annually, achieving a median rent of $435 per week.

Also, in September 2020, Panania recorded a very low vacancy rate of 1.0%, well below Canterbury-Bankstown LGA (2.4%) and Sydney Metro (3.5%). Vacancy rates in Panania also remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and continuing on a declining trend even amidst COVID-19 conditions. This confirms there is a healthy ongoing rental demand in Panania, suggesting investors can be confident of a conducive investment environment.