Penrith Property Market Update 1st Half of 2022
In Q1 2022, Penrith recorded a median house price of $921,000 and a median unit price of $580,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 17.3% for houses and 10.9% for units. Total sales decreased between Q1 2021 – Q1 2022, by -11.5% (to 610 sales) for houses and by -27.1% (to 309 sales) for units. The Penrith market is undersupplied, as price growth is alongside lower sales volume. Now is the ideal time for owner-occupiers and downsizers to capitalise on their investments, and for developers offering ready-to-sell stock to enter the market.
Average vendor discounts between Q1 2021 and Q1 2022 have shifted for both property types, swinging to a premium of 0.3% for houses and tightened to a less of a discount of -1.5% for units. Market conditions in Penrith LGA have shifted to favour vendors, as buyers must offer closer to or above the initial listing price.
Over the past 12 months, house rental yields in Penrith softened to sit at 2.9% in March 2022, which is still above Sydney Metro (2.3%). This was paired with a 16.0% increase in median house rental price between Q1 2021 – Q1 2022, reflecting an undersupplied rental market as the number of houses rented declined by -6.1% (to 1158 rentals) during this time. This suggests that Penrith continue to be a more affordable and attractive investment alternative to Sydney Metro.
1-bedroom units have provided investors with +10.9% rental growth annually, achieving a median rent of $335 per week.
Penrith recorded a vacancy rate of 0.7% in March 2022, which is below Sydney Metro’s 1.6% average. Vacancy rates in Penrith have decreased over the past 12 months, trending within the 1.0% rate for the past 6-8months. This indicates an increase in rental demand. These key indicators create a conducive and sustainable environment for investors, despite the current increase in median sale prices of property.
