Penrith Property Market Update 2nd Half 2024
Penrith is located in Greater Western Sydney, about 57km west of Sydney CBD and is known for its blend of urban conveniences and natural beauty. Situated on the banks of the Nepean River and at foothills of the Blue Mountains, Penrith is home to many amenities including shopping centres and dining options, making it ideal for families.
Property Trends
In Q3 2024, Penrith recorded a median house price of $1,000,000 and a median unit price of $615,000. This represents annual (Q3 2023 – Q3 2024) price growth of 11.1% for houses and 6.0% for units. Comparing Q3 2023 – Q3 2024, sales declined by -19.6% for houses (to 578 sales in Q3 2024) and by -3.6% for units (to 349 sales in Q3 2024). An undersupply is evident for houses and units, which created a buffer against higher interest rates, hence price growth. With prices continuing to rise, now is an ideal time for owners to capitalise on their investments.
Project Development
Penrith will see approximately $3.9B of new projects commencing construction in 2024. Most of these are infrastructure projects, such as the Sydney Metro – Western Sydney Airport Stations ($750M) and Western Sydney Airport ($538.5M). The largest project to add housing stock to the market in Penrith is the Mayfair Mixed Use Development ($114M), which will add 286 apartments. In total, there are 588 units, 46 townhouses, 81 dwellings, and 82 lots planned for 2024, which will assist with current demands.
Rental Market & Growth
House rental yields in Penrith were 3.3% in September, slightly higher than Sydney Metro (2.8%). This was paired with a 7.7% increase in median house rent price in the past 12 months to Q3 2024, at $700 per week. The number of houses rented increased dramatically, by 199.1% in the past 12 months, to 1,705 rentals in Q3 2024. The same pattern of higher rents and higher properties rented can be seen in the unit market. This suggests a highly demanded rental market, in good news for investors looking for a slightly more affordable option to Sydney Metro.
Vacancy Rates & Property Investment
Penrith recorded a vacancy rate of 0.4% in September 2024, significantly lower than Penrith LGA’s 1.0% and below Sydney Metro’s 1.6%. Vacancy rates in Penrith declined in the past 12 months, signalling an even tighter rental market. Further, 0.4% vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Penrith. This creates a conducive and sustainable environment for investors.
