Dapto Property Market Update 1st Half of 2022
In Q1 2022, Dapto recorded a median house price of $840,000, and a median unit price of $685,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 29.2% for houses and 27.1% for units. Total sales decreased in Q1 2021 – Q1 2022, by -18.3% (to 103 sales) for houses and by -60.0% for units (to 16 sales). The Dapto house and unit markets are undersupplied, as median price growth is alongside lower sales figures. Now is an opportune time for owners and downsizers to capitalise on their capital investment, and for developers to enter the Dapto market.
Average vendor discounts between Q1 2021 and Q1 2022 have remained in the premium range for houses, at a slightly lower rate of 0.9%. It has tightened for units, now sitting at a discount of -0.2%. Market conditions in Dapto is unique. Unit buyers must offer closer to the first list price, thus favouring vendors. House buyers still need to offer above the first list price, as per the past 5 quarters. However, Q1 2022 records the lowest average vendor house premium, thus an opportunity for buyers.
House rental yields in Dapto was recorded at 3.4% in March 2022. This was paired with a 14.6% increase in median house rental price (to $550 per week) in the 12 months to Q1 2022, and a -12.3% decrease in the number of houses rented. There was also a -6.3% decrease in average days to let, which when combined with other factors suggest an undersupplied rental market. In the current market conditions, it is evident that Dapto is an affordable investment alternative to Sydney Metro.
4+ bedroom houses have provided investors with +10.0% rental growth annually, achieving a median rent of $550 per week.
Dapto recorded a vacancy rate of 0.3% in March 2022, which is slightly below Wollongong LGA (0.5%) and well below Sydney Metro’s 1.6% average. Vacancy rates in Dapto have held steady over the past 12 months, sitting within the 1.0% band within the past 18 months. This indicates continuously increasing rental demand, which creates a conducive and sustainable environment for investors, despite an increase in median sale prices of property over the past 12 months.
