Penrith Property Market Update 1st Half 2024
In Q1 2024, Penrith recorded a median house price of $955,000 and a median unit price of $582,250. This represents annual (Q1 2023 – Q1 2024) price growth of 11.0% for houses and 3.7% for units. During this time sales grew by 5.7% for houses and by 14.4% for units. Strong demand in both property types has provided a buffer against cash rate hikes, making this a favourable time for owners looking to capitalize on their investments. That said, on a quarterly basis (Q4 2023 – Q1 2024) median house price increased by a slower pace, of 3.8%, while median unit prices saw a slight decline of -3.0%. This is encouraging news for first home buyers.
Average vendor discounts between Q1 2023 and Q1 2024 have tightened to a discount of -1.7% for houses and -2.8% for units. The peak discount periods have passed for both property types (in Q4 2022). While market conditions in Penrith still favour buyers, as sellers are willing to accept prices below the initial listing prices, the trend is shifting towards a market recovery. Buyers need to act fact.
House rental yields in Penrith was 3.1% as of April 2024, higher than Penrith LGA and Sydney Metro (2.9%). This was paired with a 3.8% increase in median house rental price in the past 12 months to Q1 2024, at $550 per week, and a 2.9% growth in the number of houses rented (to 70 rentals). The average days in the market decreased to its historical low level of 19 days. Combined, this confirms there is a highly demanded and competitive rental market, which is attractive for investors – even with higher entry prices compared to 12 months ago.
2- bedroom houses have provided investors with +12.8% rental growth annually, achieving a median rent of $440 per week.
Penrith recorded a vacancy rate of 0.8% in April 2024, below the Penrith LGA’s 1.0% and Sydney Metro’s 1.2%. Vacancy rates in Penrith decreased in the last 3 months, indicating an even tighter rental market. Further, a 0.8% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy of rental properties. This confirms there is a conducive environment for investors in Penrith.
