Kogarah Property Market Update 1st Half of 2020
In Q1 2020, Kogarah recorded a median house price of $1,285,000, and a median unit price of $630,000. This represents annual (Q1 2019 – Q1 2020) median price growth of 25.4% for houses and of 1.6% for units. Between Q1 2019 – Q1 2020 total sales in both markets slowed down, by -15.4% for houses (to 44 sales) and by -6.3% for units to 118 sales. With limited stock on the market and prices increasing, there is a potential undersupply in Kogarah yet still quality enquiries. This gives confidence for those wanting to sell.
Average vendor discounts between Q1 2019 and Q1 2020 have flipped to a premium of +6.9% for houses and +4.1% for units. Market conditions in Kogarah have shifted strongly to favour sellers, with buyers willing to offer above the initial listing price. This provides greater confidence for those wanting to sell.
Over the past 12 months, house rental yields in Kogarah increased steadily to reach 3.2% in December 2019. This suggests the house rental market is in a healthy position, as does the ongoing demand for rental properties in Kogarah across the same time period (with 205 house rentals recorded in Q1 2020). House and unit rental yields in Kogarah are higher than that of Sydney Metro, which suggests that with comparable median entry sale prices Kogarah provided higher returns. This is good news for those wanting an alternative investment landscape to Sydney Metro.
4+ bedroom houses have provided investors with +6.7% rental growth annually, achieving a median rent of $800 per week.
Kogarah recorded a vacancy rate of 3.8% in December 2019, slightly above Sydney Metro’s 3.6% average. Investors may wish to consider signing good tenants on longer-term leases for cashflow security.