The St George property market in Sydney has seen every suburb's values decline over the past 12 months, however rents have continued to be resilient and increased for both houses and units.
The median house price currently sits at $1.87mil compared to the record high of $2.02mil in March 2022, a decline of 7.4% in the last 12 months. The median unit price currently sits at $658,000 from an all-time high of $709,000 back in September 2017, a drop of only 7.20% in the last 5 years.
Unit values have held up quite strongly in the St George market, mainly due to its affordability and access to amenities, along with the appeal of brand new apartments with first buyers taking advantage of the government concessions and grants.
The current climate is not all bad news though, especially for those looking to buy their own home or even an investment property in Sydney.
With the price corrections we've seen around here (typical in any property market cycle), it's provided some good buying opportunities with less competition and more leverage to negotiate., especially in some of the suburbs where median prices have dropped by 15%+.
Top 5 best performing suburbs in the last 12 months (houses - median price):
Ramsgate -1.87%
Oatley -5.49%
Connells Point -5.50%
Kogarah Bay -5.58%
Hurstville -7.24%
Top 5 best performing suburbs in the last 12 months (units - median price):
Sans Souci -0.14%
Kingsgrove -1.14%
Oatley -1.39%
Pekahurst -2.61%
Allawah -2.71%
Top 5 worst performing suburbs in the last 12 months (houses - median price):
Kingsgrove -18.37%
Carrs Park -16.46%
Beverley Park -15.31%
Blakehurst -14.12%
Peakhurst -12.89%
Top 5 worst performing suburbs in the last 12 months (units - median price):
South Hurstville -7.09%
Narwee -6.18%
Riverwood -5.47%
Hurstville -4.80%
Beverly Hills -4.26%
For those who own investment properties, there's some good news too, as rents have continued to climb, especially for freestanding houses.
The median house rent is now sitting at $656 per week (+13% in the last 24 months) and units at $477 per week (+5.33% in the last 12 months) - helping offset some of the higher loan repayments which has been caused by the RBA increasing the cash rate. With property prices softening but rental returns increasing, this is providing investors with higher yields than they've seen in previous years.
Not such good news if you're looking to rent in the St George area though, as competition is still fierce for rentals, given the low vacancy rates (0.79% on average across all suburbs in St George).
The Georges River area has become increasingly quite popular over recent years with many buyers being priced out of the prestigious Inner West market. It's considered a 'bridesmaid' to the Inner West, as it still offers similar amenities to the Inner West and easy access into Sydney CBD (whether it be by car or public transport) but with a more affordable price tag.
For the majority of home buyers across St George they should still feel confident that they've made a sound financial decision buying in this area, as the average annual growth rate is currently sitting at 6.4% (houses) and 4.0% (units) based on a 10-year hold, with the average hold period of 9.34 years across the the St George area.
Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.
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