Oatley Property Market Update 2nd Half 2023
In Q3 2023, Oatley recorded a median house price of $1,600,000, and a median unit price of $741,000. This represents annual (Q3 2022 – Q3 2023) softening of -8.6% for houses and -5.0% for units. Total sales decreased between Q3 2022 – Q3 2023, by -3.8% (to 76 sales) for houses and increased by 12.8% for units (to 44 sales). Oatley’s property market is reflective of cash rate hikes and changing economic conditions, as there is a price softening alongside lower sales – especially for houses. A more affordable Oatley creates new opportunities for buyers who are looking to enter the market.
Average vendor discounts between Q3 2022 and Q3 2023 have rapidly shifted for both property types, to a higher premium of 6.4% for houses and tighter discount of -0.6% for units. Despite a softening in median sale prices market conditions in Oatley still favour sellers as buyers either must higher than or closer to the initial listing price. This creates a unique opportunity for both buyers and sellers, both benefiting from the market.
House rental yields in Oatley was 2.0% in September 2023, lower than Sydney Metro (2.7%). That said the median house rental price has remained stable in the past 12 months Q3 2023, at $750 per week, while the number of houses rented grew by 3.0% (to 69 houses). Median unit rental price increased by 28.9% in the same timeframe, and the number of units rented declined by -7.3%. Overall, there is an undersupply of unit rentals and a resilient house rental market, benefitting investors.
4+ bedroom houses have provided investors with 33.3% rental growth annually, at a median rent of $1,200 per week.
Oatley recorded a vacancy rate of 0.6% in September 2023, well below Sydney Metro’s 1.3% average. There is quicker occupancy of rental properties in Oatley. Vacancy rates in Oatley have held relatively steady over the past 12 months, with some fluctuations as investors enter/exit the market due to cash rate hikes. A 0.6% vacancy rate is very low, thus a conducive environment for investors: especially with a more affordable entry price in the past 12 months to Q3 2023.
