The Interest Rate Reality Check for Kogarah
Let's talk about the elephant in the room: interest rates.
If you're buying or selling property in Kogarah right now, interest rates are on your mind. But here's something unique about Kogarah: the St George Hospital precinct creates consistent demand that buffers the suburb against rate cycle volatility.
Here's what you need to know about how interest rates are actually affecting Kogarah property prices.
Where Are Interest Rates Right Now?
Current Rate Environment (February 2026)
| Rate Type | Current Range |
|---|---|
| RBA Cash Rate | 4.35% |
| Variable Home Loans | 6.0% - 6.8% |
| Fixed Rates (1-3 years) | 5.8% - 6.5% |
| Investment Loans | 6.2% - 7.0% |
The Context: Higher than COVID-era lows, but historically moderate. Kogarah's diverse buyer and renter pool means the market adjusts but doesn't collapse.
How Interest Rates Impact Kogarah Property Prices
The Borrowing Capacity Effect
Borrowing Capacity on $150,000 Household Income:
| Interest Rate | Maximum Borrowing |
|---|---|
| 3.0% | ~$1,050,000 |
| 4.0% | ~$970,000 |
| 5.0% | ~$900,000 |
| 6.0% | ~$840,000 |
| 7.0% | ~$780,000 |
For Kogarah buyers: At current rates, households earning $150K can still access quality Kogarah units and some entry-level houses.
🧮 Check Your Borrowing Capacity
Find out exactly how much you could borrow for a Kogarah property.
Borrowing Capacity Calculator →Monthly Repayment Reality
Example: $1,000,000 loan over 30 years
| Interest Rate | Monthly Repayment | Total Interest Paid |
|---|---|---|
| 3.0% | $4,216 | $517,760 |
| 4.0% | $4,774 | $718,640 |
| 5.0% | $5,368 | $932,480 |
| 6.0% | $5,996 | $1,158,560 |
| 7.0% | $6,653 | $1,395,080 |
💰 Calculate Your Mortgage Repayments
See exactly what your repayments would be for Kogarah properties.
Mortgage Calculator →What's Actually Happening in Kogarah?
Price Adjustments We're Seeing
Based on my daily experience in the St George market:
Kogarah 2024-2026 Trends:
- Kogarah has seen 8-12% adjustment from 2023 peaks
- Current median house price: $1.85 million
- Current median unit price: $720,000
- Strong rental demand continues
- Rental yield of 4%+ to help offset mortgage costs
- Low strata levies (for apartments)
- Strong tenant appeal (close to hospital/station)
- Distance to St George Hospital
- Walking distance to Kogarah Station
- Town centre shopping convenience
- Quality schools nearby
- Weekly rent: ~$550-$600
- Annual rent: ~$28,600-$31,200
- Gross yield: ~4.0-4.3%
- Annual interest (80% LVR): ~$34,560
- Net position: Slightly negative gearing
- Household income: $150,000-$180,000+
- Deposit: 20% ($370,000)
- Household income: $80,000-$100,000
- Deposit: 10-20% ($72,000-$144,000)
What this means for Kogarah: As a mid-range suburb with hospital-driven demand, Kogarah has experienced moderate correction but remains resilient compared to suburbs without similar employment anchors.
The Kogarah Advantage: Why We're More Resilient
1. St George Hospital Employment Hub
Thousands of medical professionals need housing near the hospital. This creates consistent buyer and rental demand regardless of interest rates.
2. Town Centre Convenience
Everything within walking distance—shops, restaurants, services. This urban convenience appeals to time-poor professionals.
3. Transport Excellence
Kogarah Station is a major T4 line hub with express services to the CBD. The bus interchange adds connectivity throughout St George.
4. Investment Fundamentals
Strong rental yields (around 3.5-4%) and low vacancy rates make Kogarah attractive for investors even at higher rates.
5. Diverse Property Mix
From modern apartments to family homes, Kogarah offers options at various price points for different buyers.
Strategies for Kogarah Buyers
1. Consider the Hospital Premium
Properties closest to St George Hospital command premiums but also have the strongest rental demand if you need to rent out.
2. New vs Established
New apartments near hospital: Higher prices, lower maintenance, strong rental appeal to medical professionals.
Established homes in surrounding streets: Better land value, renovation potential, family appeal.
3. Investment Calculation
At higher rates, focus on properties with:
📊 Calculate Your Buying Costs
Understand the full purchase costs for Kogarah properties.
Buying Costs Calculator →Strategies for Kogarah Sellers
1. Target Hospital Professionals
Your marketing should reach medical professionals looking to buy near work. Consider targeting RACGP, medical recruitment agencies, and hospital notice boards.
2. Highlight Convenience
In your listing, emphasize:
3. Investment Appeal
If your property has strong rental history, share this with potential buyers. Rental income data can justify prices for investment-focused buyers.
📊 Estimate Your Selling Costs
Understand exactly what you'll receive after commissions and fees.
Selling Costs Calculator →Kogarah for Investors: The Rate Calculation
Rental Yield Reality
Example: $720,000 Kogarah unit
At 6% mortgage rate:
Tax benefits: Negative gearing provides tax deductions, and depreciation on newer apartments adds further benefits.
📊 Calculate Capital Gains
Understand potential CGT implications for Kogarah investment properties.
Capital Gains Calculator →Frequently Asked Questions About Interest Rates in Kogarah
How much do I need to earn to buy in Kogarah now?
For a median Kogarah house ($1.85M), you'd typically need:
For units ($720K):
Is Kogarah a good investment at current interest rates?
Yes, for the right strategy. Strong rental demand from hospital staff, low vacancy rates, and solid capital growth history make Kogarah attractive. Focus on properties with yields above 4%.
Will Kogarah prices fall further if rates stay high?
Kogarah's hospital-driven demand provides a floor under prices. The suburb has already adjusted 8-12%, and further significant falls are unlikely given the consistent employment anchor nearby.
The Bottom Line for Kogarah
Interest rates are higher, but Kogarah's unique advantages—particularly the hospital precinct—provide resilience that many suburbs lack.
For Kogarah buyers: The combination of employment anchor, transport, and convenience makes Kogarah a sound choice even at higher rates.
For Kogarah sellers: Target the diverse buyer pool—medical professionals, families, and investors—who are drawn to Kogarah's fundamentals.
For investors: Strong rental demand and tax benefits can make Kogarah investments work even at current rates.
Need Expert Guidance for Kogarah?
📞 Call: 0411 818 171 📧 Email: [email protected] 🗓️ Book a consultation: Schedule a free chat
Michael Kalinovski | Kogarah & St George Real Estate Specialist "Recognised | Respected | Recommended" 25+ Years Experience | 500+ Families Helped
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