Kogarah Property Market Update 1st Half 2023
In Q1 2023, Kogarah recorded a median house price of $1,530,000, and a median unit price of $646,000. This represents annual (Q1 2022 – Q1 2023) median price softening of -7.3% for houses and -1.4% for units. That said, on a quarterly basis (Q4 2022 – Q2 2023) median house and unit price both grew by 1.0%. Thus, cash rate hikes did translate into the market, but consumer confidence have returned. In the past 12 months to Q1 2023 sales declined by -43.1% (house) and -17.1% (units), thus an undersupply is evident. For those looking for a more affordable market, time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have shifted for houses, to a higher premium of 7.2% (from 5.9%). Units by contrast have recorded a larger discount of -2.7% (from -1.5%). House sellers can achieve a final price above the first list price again in Q1 2023, thus the market has returned to pre-cash rate hike market conditions. Unit buyers can still benefit from a discount; however, time is limited.
House rental yields in Kogarah ¥ were recorded at 4.0% in March 2023, above Sydney Metro (2.9%). This was paired with a 15.4% increase in median house rental price in the past 12 months to Q1 2023 (to $750 per week), and a -3.8% decrease in the number houses rented (to 102 houses). Average days on market remained at a low 20 days. This is an undersupplied house rental market, and the same pattern can be seen for units; thus, confirming a resilient rental market in Kogarah.
4+ bedroom houses have provided investors with +22.0% rental growth annually, with a median rent of $1,000 per week.
Kogarah recorded a vacancy rate of 0.9% in March 2023, which is below Sydney Metro’s 1.6% average. Thus, properties are rented quicker in Kogarah. Further, vacancy rates in Liverpool have continued to decline in the past 12 months, indicating higher rental demand. These key indicators create a conducive and sustainable environment for investors, even if the house median price growth have started to normalise in the past quarter (Q4 2022 – Q1 2023).
