Kogarah Property Market Update 1st Half 2024
In Q1 2024, Kogarah recorded a median house price of $1,627,500, and a median unit price of $700,000. This represents annual (Q1 2023 – Q1 2024) median price growth of 8.5% for houses and minor price softening of -1.2% for units. Sales decreased between Q1 2023 – Q1 2024, by -5.2% (to 73 sales) for houses and -11.6% for units (to 228 sales). Confidence has returned to Kogarah, with an undersupply in the houses market. This created a buffer against higher interest rates, thus a price growth. Conversely units have become more affordable, and with ample stock planned for development now is an ideal time to enter the market.
Average house vendor discounts between Q1 2023 and Q1 2024 have increased further, to a premium of 7.0% for houses. Average unit vendor discount has tightened to a discount of -1.4%. The house market continues to favour sellers, where buyers must offer above the first list price. Unit buyers can still benefit from a discount; however, this is getting lower. Thus, time is of the essence.
House rental yields in Kogarah was 3.2% in March 2024, higher than the wider Georges River LGA (2.5%) and Sydney Metro (2.9%). This was paired with a 13.3% increase in median house rental price in the past 12 months to Q1 2024, at $850 per week, and a 1.7% increase in the number of houses rented (at 119 houses). The unit rental market shows a similar pattern, confirming a highly demanded rental market in Kogarah, which is good news for investors.
2-bedroom houses have provided investors with +18.9% rental growth annually, achieving a median rent of $630 per week.
Kogarah recorded a vacancy rate of 0.9% in March 2024, slightly below Sydney Metro’s 1.1% average. Vacancy rates in Kogarah have held relatively steady over the past 12 months, indicating stability in its rental demand. Further, a 0.9% vacancy rate is significantly below the Real Estate Institute of Australia’s health benchmark of 3.0%, thus quicker occupancy of rental properties. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale price (thus entry price) in the past 12 months.
