Penrith Property Market Update 2nd Half of 2021

In Q3 2021, Penrith recorded a median house price of $840,000 and a median unit price of $542,500. This represents annual (Q3 2020 – Q3 2021) median price growth of 19.8% for houses and 8.7% for units. Between Q3 2020 – Q3 2021 total sales in both markets picked up, by 5.0% for houses (to 714 sales) and by 23.8% for units (to 385 sales). There are real returns in capital investment in the Penrith market, as median price growth is alongside increased transaction volume. Overall, this creates an opportune time for owner-occupiers wishing to benefit from a highly demanded market.

Average vendor discounts between Q3 2020 and Q3 2021 have tightened to -2.4% for units and swung to a premium of 0.1% for houses. Market conditions in Penrith is trending to favour sellers, where buyers are willing to purchase either closer or above the first listed price. Unit buyers can still benefit from a discount however time is limited.

In September 2021, house rental yields in Penrith were recorded at 3.0%. In the 12 months to Q3 2021, the median house rental price increased by 10.4% to reach $497 per week, further complemented by a decline of -9.1% (to 20 days) in average days on market. Overall, this represents a resilient rental market throughout COVID-19 lockdowns in 2021.

3 bedroom houses have provided investors with +4.7% rental growth annually, with a median rent of $450 per week.

Also in September 2021, Penrith recorded a vacancy rate of 0.6%, below that of Penrith LGA (0.9%) and well below Sydney Metro (2.7%). Vacancy rates in Penrith have fluctuated since the peak of COVID-19 in April 2020, however, have returned to a declining trend since December 2020 to reach a historical low in September 2021. Throughout this period the vacancy rate in Penrith remained below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Penrith.