Penrith Property Market Update 2nd Half of 2019

In Q3 2019, Penrith recorded a median house price of $651,750, and a median unit price of $460,000. This represents annual (Q3 2018 – Q3 2019) median price softening of -4.9% for houses and -10.2% for units. During this timeframe total house sales slowed, down by -5.5% to 536 sales. Meanwhile unit sales increased, by 2.3% to 220 sales. That said the Penrith market have seen more positive signs over the past 6 months, suggesting confidence is returning.

Average vendor discount between Q3 2018 and Q3 2019 have tightened for houses to -4.4%, while units have slightly widened to -6.7%. Market conditions in Penrith continue to favour buyers, where sellers are willing to negotiate below their initial listing price. That said discounts for houses is now lessening, thus buyers need to act quickly.

Over the past 12 months, house rental yields in Penrith increased steadily to reach 3.4% in June 2019; above Sydney Metro’s 2.9% average. This suggests the house rental market is in a healthy position, as does the decrease in average days to let across the same time period (down by -10.3% to 26 days in the 12 months to Q3 2019).

2 bedroom houses provided investors with the best rental growth annually, achieving a median rent of $335 per week. This said, 2 bedroom houses make up a small volume of all rental stock, with 3 and 4 bedroom being the dominant types.

Penrith recorded a vacancy rate of 3.9% in June 2019, which is slightly above Sydney Metro’s 3.5% average. Investors are advised to consider signing tenants on longer-term leases to help mitigate vacancy risk.