Oatley 2H Property Market Update 2nd Half 2024
Oatley is a charming suburb located approximately 18 Kilometres southwest of Sydney CBD within the Georges River City Council area. It is known for its lush greenery, beautiful parks and its strong sense of community. This combined with being well serviced by public transport makes it an attractive location for families.
Property Trends
In Q3 2024, Oatley recorded a median house price of $1,857,500, and a median unit price of $730,000. This represents annual (Q3 2023 – Q3 2024) price growth of 12.6% for houses and 9.7% for units. Comparing Q3 2023 – Q3 2024, total house sales declined by -13.6%, to 89 sales in Q3 2024, whilst unit sales increased by 8.4%, to 103 sales in Q3 2024. This suggests houses are highly demanded, creating a buffer against higher interest rates. With less house stock available this has diverted many buyers to units. This caused an undersupply of units, prompting median unit price growth. Now is in ideal time for owners to capitalise on their investments and sell.
Project Development
Oatley will see approximately $43.6M of new projects commencing construction in 2024. Most of these developments are mixed-use projects, including 62 Blackshaw Avenue Warehouse & Self Storage Units ($12.3M) and the project at 95-99 Railway Parade Units & Commercial Tenancies ($10.1M) will add 28 units. This along with three other residential projects will add residential stock to Oatley. That said, with no new ready-to-go stand-alone houses planned, an undersupply in houses is expected.
Rental Market & Growth
House rental yields in Oatley was 2.9% in September 2024, slightly higher than the Georges River LGA (2.6%) and Sydney Metro (2.8%). This was paired with a 6.8% increase in median house price in the past 12 months to Q3 2024, at $812 per week. The number of houses rented also increased, by 10.7% in the past 12 months, to 93 rentals in Q3 2024. A similar pattern can be seen in the unit rental market, suggesting both property types are highly demanded. This is good news for investors, even if the entry (property sale) median price has increased in the past 12 months.
Vacancy Rates & Property Investment
Oatley recorded a vacancy rate of 0.9% in September 2024, below the Georges River LGA’s 1.5% average and Sydney Metro’s 1.6% average. Vacancy rates in Oatley have fluctuated in the past 12 months, alongside investor activity entering/exiting the market. Furthermore, a 0.9% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Oatley. This is a conducive environment for investors.
