Kingsgrove Property Market Update 2nd Half of 2021

In Q3 2021, Kingsgrove recorded a median house price of $1,605,000, and a median unit price of $675,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 38.9% for houses and 12.7% for units. Between Q3 2020 – Q3 2021 total sales slightly increase for houses, by 1.4% to 147 sales, however decreased for units by -27.2% (to 59 sales). There are real returns in capital growth in the housing market as the increase in median price is met with higher sales volume. The unit market suggests an undersupply, as price growth is due to lower stock. Now is an ideal time to transact in Kingsgrove.

Average vendor discounts between Q3 2020 and Q3 2021 have further swung to a premium of 6.1% for houses and tightened for units to -1.7%. Current market conditions for Kingsgrove heavily favour vendors as buyers have to offer closer or above the first list price. There is still a discount for units however time is limited.

In September 2021, house rental yields in Kingsgrove were recorded at 1.8%. In the 12 months to Q3 2021, the median house rental price increased by 5.0% to reach $630 per week, further complemented with average days on the market declining by -14.3% (to 24 days). Overall this represents a resilient rental market throughout COVID-19 lockdowns.

4+ bedroom houses have provided investors with +5.7% rental growth annually, with a median rent of $740 per week.

Also in September 2021, Kingsgrove recorded a vacancy rate of 3.2%. Although this is above Canterbury-Bankstown LGA (2.5%) and Sydney Metro (2.7%), vacancy rates in Kingsgrove have been on a declining trend since April 2021. Rental demand is improving, however as vacancy rates remain above the Real Estate Institute of Australia’s healthy benchmark of 3.0% investors may wish to sign tenants to longer leases for increased cashflow security.