Oatley Market Update 1st Half 2024
In Q1 2024,Oatley* recorded a median house price of $1,951,000and a median unit price of $681,000.This is an annual (Q1 2023 – Q1 2024)price growth of 8.1% forhouses and 16.4%for units. During this time, sales grew by 31.2%(to 101 sales) for houses and by 8.9% (to 86 sales) for units.The market has regained confidence, and high demand for bothproperty types has provided a buffer against higher interest rates. Now is the ideal time for owners to capitalise ontheir investments. Thatsaid, on a quarterly basis (Q4 2023– Q1 2024) median house price saw a slight decline of -1.0%. This has created a small window for first home buyers, however with very little new supply planned buyers must actfast.
HOUSE SALES YEAR HALF YEAR CHANGE FROM LAST
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
SALES
Oatley* is set tosee approximately $24.0Mworthofnewprojects commencingin2024
PRICE
RENTAL PRICE
MEDIAN PRICE Q1 2024
$1.95M $681K
MEDIAN PRICE Q1 2024
AVERAGE DAYS ON MARKET Q1 2024
44
44
AVERAGE DAYS ON MARKET Q1 2024
A main mixed-use project in 2024is 62Blackshaw Avenue Warehouse & Self Storage Units ($12.3M). This project will construct 22x2 storey warehouse units with ancillary office areas and 54 self-storage units including 7work/store units.
Key residential projects planned for construction are:
• 10-12 Connelly Street Apartments (9 apartments)
• 5A The Strand Mixed-Use project (25 apartments)
• 18A Letitia Street (2 dwellings)
Although some residential projects are planned, there is very little readyto-sell stand-alone properties such as houses and townhouses in the pipeline. Now is an ideal time for house buyers to act, before there are even higher property sale prices; due to low stock and future undersupply.
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
Average vendor discounts between Q1 2023and Q1 2024 have increased to a higher premium of 5.7% for houses and swung to a break-even point of 0.0% for units. Market conditions in Oatley* have shifted to favour sellers, as buyers must offer above oron par to the first listing price. Buyers must act fast before there is further price growth.
The suburb ofOatley* has historically outperformed the wider Georges River Local Government Area (LGA) in both house and unit median prices. 2024# saw the same pattern continue for units, however house prices in the suburb have returned toparity towards the LGA’s.
The dominant proportion of homes sold in Oatley across 2023and 2024# were in the more affordable price bracket of between $1,500,000to $1,799,999(23.5%).
Conversely, units also saw a dominant premium price point of $800,000and above (30.8%). This is good news for owners and buyers, as the market benefits both. The most affordable unit price point of less than $599,999is still available (31.2%) andthe premium price point for houses of $2.4Mand above is holding strong (22.8%).
MARKET COMPARISON
Oatley (2223) House Georges River LGA House Oatley (2223) Unit Georges River LGA Unit
market comparison graph provides a comparative trend for the median price of houses and units over the past 5 years. The main areas profiled are chosen based on their proximity to the main suburb analysed, which is Oatley*.
$500,000 to $599,999
$600,000 to $699,999 $700,000 to $799,999 $800,000 and above
RENTAL GROWTH 2024€
House rental yields in Oatley¥ was 1.9% as of April 2024,lower than George River LGA (2.7%) and Sydney Metro (2.9%). Thatsaid, median house rental price increased by 6.0%in the past 12 months to Q1 2024,at $922per week; alongside a 10.0% growth in the number of houses rented (to 11 rentals). The average days on the market decreased to its historical low level of 12days. The units market saw the same pattern. Combined, these indicators confirm there is a highly demanded and competitive rental market, which is still attractive for investors.
4+ bedroom houses have provided investors with +36.8% rental growth annually, achieving a median rent of $1,300per week.
Oatley¥ recorded a vacancyrate of 0.8% in April 2024, below Oatley City LGA and Sydney Metro’s 1.2%. Vacancy rates in Oatley¥ saw a slight spike in the last 12 months, due to investors returning tomarket. Further, a 0.8% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, suggesting rental properties are occupied quicker in Oatley¥. This confirms there is a conducive and sustainable environment for investors.
RENTAL VACANCY RATES 2024
Oatley
PROJECT DEVELOPMENT MAP 2024 ₳
OATLEY
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REFERENCES
* Oatley sales market data and key indicators encapsulates aggregate property market conditions within the suburbs of Mortdale, Oatley, Hurstville Grove, and Penhurst, Lugarno, Peakhurst Heights.
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2024 encapsulates sales transactions for Q1 2024 (01/01/2024 – 31/03/2024) only, other years encapsulates sales transactions for the full year (i.e 01/01 to 31/12 of the relevant year).
€ Annual rental growth is a comparison between Q1 2023 (01/01/2023 – 31/03/2023)and Q1 2024 (01/01/2024 – 31/03/2024) house median rent figures.
¥ Oatley rental market data encapsulates aggregate property conditions within the postcode of 2223.
§ Rental yields shown are as reported as of April 2024.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within the suburbs of Mortdale, Oatley, Hurstville Grove, Penhurst, Lugarno and Peakhurst Heights.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2024.
