The Hills Shire Property Market Update 1st Half 2025
The Hills District is located in the north-western part of Sydney and is a vibrant and growing area known for its mix of suburban charm and natural beauty. It encompasses areas such as Castle Hill, Baulkham Hills and Kellyville. The district offers a family-friendly atmosphere and is home to many parks, schools and modern amenities making it an ideal family location.
Property Trends
In Q4 2024, The Hills Shire recorded a median house price of $1,530,000 and a median unit price of $820,000. This represents an annual (Q4 2023 - Q4 2024) price tightening of -5.0% for houses and -3.2% for units. Comparing Q4 2023 and Q4 2024, total sales increased by 3.2% (to 1177 sales) for houses and decreased by -17.4% (to 968 sales) for units. The increase in demand over the last 12 months from Q4 2023 to Q4 2024 suggest there is still a high demand for homes in the area, thus the slight softening in house prices reflect higher interest rates and current economic conditions. Buyers should act quickly to take advantage of current house prices, before there is a recovery.
Project Development
The Hills Shire will see approximately $4.7B of new projects commencing construction in 2025. Approximately 5,449 units/apartments, 187 townhouses, 643 dwellings and 8,035 lots are planned. Once built this new stock will assist with current demand, however due to the current construction challenges some delays are expected. Hence the new stock may not eventuate in the short term, creating an undersupply in the market.
Rental Market & Growth
House rental yields in The Hills Shire was 2.3% as of December 2024, slightly below the Parramatta Council (2.6%) and the Sydney Metro (2.7%). Further, median house rental price increased by 2.6% in the past 12 months to Q4 2024, at $800 per week. In the same timeframe the number of houses rented also increased, by 10.3% (to 1471 houses) in Q4 2024; suggesting a highly demanded market and investment opportunities.
Vacancy Rates & Property Investment
The Hills Shire recorded a vacancy rate of 2.8% in December 2024, slightly above the Sydney Metro average of 2.1%. Vacancy rates have showed a slight increasing pattern, due to investors returning to the market as cash rates stabilise. That said a 2.8% vacancy rate is still below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, which indicates quicker occupancy of rental homes in The Hills Shire. This creates a conducive and sustainable investment environment, especially with a slightly more affordable entry price for houses and units in the past 12 months to Q4 2024.
