Blue Mountains Property Market Update 1st Half 2025
The Blue Mountains area of New South Wales is a stunning picturesque area about 60 kilometres west of Sydney CBD. Known for its dramatic cliffs and breathtaking views it is a haven for outdoor enthusiasts. With many modern amenities and transport options to Sydney CBD, the area is an ideal family location.
Property Trends
In Q4 2024, Blue Mountains recorded a median house price of $910,000 and a median unit price of $720,000. This is an annual (Q4 2023 – Q4 2024) price growth of 7.1% for houses and 13.4% for units. Comparing Q4 2023 – Q4 2024, sales softened by -5.8% for houses (to 398 sales in Q4 2024), but increased by 44.4% for units (to 26 sales in Q4 2024). This suggests an undersupplied house market and a very highly demanded unit market. This has created a buffer against higher interest rates, which is evident in the current median house and unit price growth. Now is an ideal time to capitalise on their investments. With very few ready-to-sell stock planned, buyers must act fast.
Project Development
Blue Mountains will see approx. $59.1M of new projects commencing construction in 2025. There are several mixed-use and commercial projects planned, which improves liveability and create more jobs. With only limited ready-to-go stock planned for 2025, most of which are units (20) and land lots (48), the undersupply in houses will continue. This will push prices up, not only for houses but also for other stock types.
Rental Market & Growth
House rental yields in Springwood (2777) was 3.2% as of December 2024, slightly above the Blue Mountains LGA (3.0%) and higher than Sydney Metro (2.7%). Further, median house rental price increased by 9.2% in the past 12 months to Q4 2024, at $650 per week. During this time, the number of housed rented decreased, by -14.2% (to 181 houses to Q4 2024). This indicates an undersupplied house rental market in Blue Mountains, which is beneficial to investors.
Vacancy Rates & Property Investment
Springwood (2777) recorded a vacancy rate of 0.4% in December 2024, below the Blue Mountains LGA average of 0.9 % and Sydney Metro’s 2.1%. Vacancy rates have declined in the past 12 months, indicating an even tighter rental market. Furthermore, a 0.4% (Springwood) and 0.9% (Blue Mountains) vacancy rate is significantly below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating a quicker occupancy of rental properties in the Blue Mountains area. This creates a conducive and sustainable environment for investors, even with a higher entry price in Q4 2024.
