Kogarah Property Market Update 2nd Half 2024
Kogarah is a vibrant suburb located 14 kilometres from south of Sydney CBD within both the Georges River and Bayside LGAs. It is known for its diverse and rich heritage and offers a blend of residential, commercial and recreational spaces. The area sits right in the heart of the St George Area and is well serviced by public transport and schools, making it an ideal family environment.
Property Trends
In Q3 2024, Kogarah recorded a median house price of $1,901,000, and a median unit price of $745,500. This is an annual (Q3 2024 – Q3 2024) price growth of 17.3% for houses and 2.8% for units. Comparing Q3 2023 – Q3 2024, sales declined by -27.3% for houses (to 93 sales in Q3 2024) and by -25.5% for units (to 238 sales in Q3 2024). There is an undersupply in the market, for both houses and units, which created a buffer against higher interest rates; hence price growth. With prices continuing to rise, now is an ideal time for owners to capitalise on their investments. Most of the new incoming stock are units, which presents an opportunity for buyers.
Project Development
Kogarah will see approximately $132.7M of new projects commencing construction in 2024. Most of these developments are mixed-use and residential projects, including 648-652 Princes Highway & 1-3 Ashton Street Serenity Gardens ($51.2M); which will add 61 units and 13-21 Wyuna Street Units – Bayside ($16.4M); which will add 64 units to Kogarah. With no new ready-to-go stand-alone houses planned, an undersupply in houses is expected.
Rental Market & Growth
House rental yields in Kogarah was 3.2% in September, slightly above Sydney Metro (2.8%). This was paired with a 2.6% increase in median rent price in the past 12 months to Q3 2024, at $840 per week. The number of houses rented decreased by -12.6% in the past 12 months, to 104 rentals in Q3 2024, which suggests an undersupply. Similarly, median unit rent price rose by 6.3% to $680, but the number of units rented increased, by 8.2% to 630 units in Q3 2024. This suggests a highly demanded unit rental market. Overall, this is good news for investors.
Vacancy Rates & Property Investment
Kogarah recorded a vacancy rate of 1.7% in September 2024, slightly above Georges River LGA’s 1.5% and Sydney Metro’s 1.6% average. Vacancy rates in Kogarah have generally trended upwards in the past 12 months, due to investors returning to market as cash rates stabilised. That said, a 1.7% vacancy rate is still significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting there is quicker occupancy of rental homes in Kogarah, which benefits investors.
