Panania Property Market Update 2nd Half 2024
Panania in New South Wales is a charming suburb located in the City of Canterbury-Bankstown, about 23 kilometres southwest of Sydney CBD. Panania is home to spacious home and is a very family-friendly with a strong sense of community. Along with the convenience of many shopping and transport options, Panania is an ideal place to live.
Property Trends
In Q3 2024, Panania recorded a median house price of $1,500,000, and a median unit price of $1,165,888. This is an annual (Q3 2023 – Q3 2024) price growth of 12.9% for houses and 22.1% for units. Comparing Q3 2023 – Q3 2024, sales declined by -29.2% for houses (to 165 sales in Q3 2024) and increased by 68.4% for units (to 96 sales in Q3 2024). This suggests that there is an undersupply in the house market and a highly demanded unit market, which created a buffer against higher interest rates – hence the price growth for both houses and units. This indicates that now is an ideal time for owners to capitalise on their investments and sell.
Project Development
Panania will see approximately $132.7M of new projects commencing construction in 2024. Most of these developments are commercial and mixed-use projects, including the Milperra Village Integrated Aged Care Facility ($60.0M) and 15-19 Enterprise Avenue Mixed Use Development ($31.3M). There are 50 units, 12 dwellings, and 350 lots planned, which will assist with housing stock in Panania. That said, this is not enough to satisfy the market demand, which suggests more undersupply is imminent; as is price growth.
Rental Market & Growth
House rental yields in Panania were 2.9% in September, on par with Sydney Metro (2.8%). This was paired with a 13.6% increase in median rent price in the past 12 months to Q3 2024, at $795 per week. In this time, the number of houses rented increased by 13.6%, to 150 rentals in Q3 2024. Similarly, median unit rent price rose by 13.3% to $850, and the number of units rented increased by 52.9% to 156 units in Q3 2024. Overall, this suggests a highly demanded rental market, which is beneficial for investors.
Vacancy Rates & Property Investment
Panania recorded a vacancy rate of 0.8% in September 2024, slightly below Canterbury Bankstown LGA’s 1.1% and Sydney Metro’s 1.6% average. Vacancy rates in Panania have held relatively steady in the past 12 months, with some fluctuations due to investors entering and exiting the market. Further, 0.8% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Panania, which is conducive for investment.
