Kogarah Property Market Update 2nd Half of 2020
In Q3 2020, Kogarah recorded a median house price of $1,225,000, and a median unit price of $675,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 6.3% for houses and of 9.3% for units. Between Q3 2019 – Q3 2020 sales activity slowed, by -1.3% for houses (to 75 sales) and by -10.2% for units (to 150 sales). A slowdown in activity is potentially due to low stock and/or COVID-19 restrictions. Positive growth in median property prices suggest a highly resilient market in Kogarah. With median prices increasing and limited competition on the market, now is the time to sell.
Average vendor discounts between Q3 2019 and Q3 2020 have swung higher for houses, to a premium of 3.0%, and have tightened to -0.4% for units. House market conditions in Kogarah have now shifted to favour sellers, as buyers are willing to offer above the initial listing price. Now is the time to sell.
In September 2020, house rental yields in Kogarah were recorded at 2.1%. In the 12 months to Q3 2020, the median house rental price increased slightly to $600 per week, while average days on the market declined by -27.3% (to 24 days). Overall this suggests Kogarah has remained a resilient rental market throughout COVID-19.
3 bedroom houses have provided investors with stable returns annually, achieving a median rent of $600 per week.
Also in September 2020, Kogarah recorded a vacancy rate of 2.9%, below that of Georges River LGA and Sydney Metro (both 3.5%). Vacancy rates in Kogarah also remain below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 conditions. This indicates there is a healthy ongoing rental demand, suggesting investors can be confident of a conducive investment environment in Kogarah.