Oatley Property Market Update 1st Half 2025
Oatley & Mortdale are suburbs located southwest of the Sydney CBD, New South Wales, in the Georges River Council area. Oatley is home to many walking trails, parks and picnic spots with views of the Georges River, whilst Mortdale is known for its urban conveniences and excellent transport links to the CBD. Combined, the area is an ideal location for all.
Property Trends
Postcode 2223, (which for this report include suburbs: Oatley, Mortdale, Hurstville Grove, Penhurst, Lugarno and Peakhurst Heights) recorded a median house price of $2,022,500 and unit price of $780,000 in Q1 2025. This is an annual (Q1 2024 – Q1 2025) price growth of 3.7% for houses and 7.1% for units. Comparing Q1 2024 and Q1 2025, sales declined by -1.2% (to 82 sales in Q1 2025) for houses, but increased by 30.2% (to 56 sales to Q1 2025) for units. There is an undersupply of houses and a highly demanded market for units, which created a buffer against higher interest rates and underpinned continuous price growth. Now is an ideal time for owners to capitalise on their investments.
Project Development
Postcode 2223 – Oatley & Mortdale will see approx. $42.7M of new projects commence construction between 2024–2026. Approximately 33 units/apartments, 10 townhouses and 3 dwellings are planned in 2025. Whilst this will assist with some of the demand, it is not enough. There will still be an undersupply in the market for all property types.
Rental Market & Growth
House rental yields across Postcode 2223 were 1.8% as of March 2025. Median house rental price in the area have increased by 15.4% in the past 12 months to Q1 2025, at $900 per week. In the same timeframe the number of houses rented also increased, by 87.5% (to 45 houses) in Q1 2025. This indicates a highly demanded and competitive house rental market in Postcode 2223, which will benefit investors.
Vacancy Rates & Property Investment
Postcode 2223 recorded a vacancy rate of 1.2% in March 2025, on par with Sydney Metro’s 1.3%. Vacancy rates have fluctuated in the past 12 months, after hitting a high of 1.8% in December 2024, due to investors returning to market and the small size of the rental market. Vacancy rates declined significantly in the past 3 months, indicating a tighter rental market. Furthermore, a 1.2% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%. This indicates quicker occupancy of rental homes in the area, which is conducive for investment.
