Panania Property Market Update 1st Half of 2024
In Q1 2024, Panania recorded a median house price of $1,445,000, and a median unit price of $1,150,000. This is an annual (Q1 2023 – Q1 2024) growth of 18.0% for houses and 41.1% for units. During this time total sales increased, by 43.3% (to 202 sales) for houses and by 36.4% (to 60 sales) for units. Confidence has returned to Panania, with properties in high demand. This created a buffer against higher interest rates, evident through a price growth even with more properties sold. Combined with a small number of new ready-to-sell stock planned, this suggests that now is an ideal time for owners to capitalise on their investments.
Average vendor discounts between Q1 2023 and Q1 2024 remain in the premium and have increased further to a higher premium of 5.5% for houses and 4.5% to units. This suggests that the market continue to favour sellers, with buyers having to offer further above the initial listing price. Now is an ideal time for sellers to transact.
House rental yields in Panania was 3.7% as of April 2024, higher than Canterbury-Bankstown LGA (3.3%) This was paired with a 10.3% increase in median house rental price in the past 12 months to Q1 2024, at $770 per week; and a -13.0% decrease in the number of houses rented (to 140 rentals). During this time average days on the market has remained stable, at 17 days. Overall, this suggests an undersupplied house rental market, which is beneficial for investors.
2-bedroom houses have provided investors with +17.0% rental growth annually, achieving a median rent of $550 per week.
Panania recorded a vacancy rate of 0.6% in April 2024, significantly below Sydney Metro’s 1.2% average. Vacancy rates in Panania have held relatively steady over the past 12 months, with some fluctuations due to investor activity because of cash rate changes. That said, a 0.6% vacancy rate is significantly lower than the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in Panania. This creates a conducive and sustainable environment for investors.
