Oatley & Surrounds Property Market Update 1st Half 2026
Oatley & surrounds are suburbs located southwest of the Sydney CBD in the Georges River Council area. Oatley is home to many walking trails, parks and picnic spots with views of the Georges River, offering urban conveniences and transport links to the CBD.
Property Trends
Postcode 2223 and surrounds (which for this report includes Oatley, Mortdale, Hurstville Grove, Penshurst, Lugarno and Peakhurst Heights) recorded a median house price of $2,185,000 and a median unit price of $800,000 in Q1 2026. This represents an annual (Q1 2025 – Q1 2026) price growth of 18.4% for houses and by 19.9% for units. Between Q1 2025 – Q1 2026 house sales have decreased, by -26.5% (to 72 for houses in Q1 2026), but increased by 2.4% for unit sales (to 87 sales in Q1 2026). The house market in the area is undersupplied, and the unit market is highly demanded, creating a buffer against higher cash rates in 2026. Thus, now is still an ideal opportunity for owners to sell.
Project Development
Postcode 2223 – Oatley & Surrounds will see approx. $52.6M of new projects commence construction between 2023–2027; including 51 units/apartments, 17 townhouses and 3 dwellings. The incoming supply of ready-to-go stock will aid in answering demand. But when compared to 72 houses and 87 units sold in Q1 2026 this will not be enough. Thus, an undersupply is expected, which will cause prices to rise for all stock types.
Rental Market & Growth
House rental yields in Postcode 2223 were 2.2% in March 2026, lower than Georges River LGA (2.4%) and Sydney Metro (2.8%). That said, the area saw a 6.1% increase in median house rental price in the past 12 months to Q1 2026, at $950 per week. The number of houses rented did decline, by -8.9% in the past 12 months, to 82 rentals in Q1 2026. There is an undersupplied rental market in Postcode 2223, which is beneficial to investors.
Vacancy Rates & Property Investment
Postcode 2223 recorded a vacancy rate of 1.1% in March 2026, higher than Georges River LGA 0.9% but on par with Sydney Metro 1.1% average. That said, vacancy rates in Postcode 2223 have declined slightly in the past 12 months, which suggests a tighter rental market. Further, a 1.1% vacancy rate is still well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes. This suggests a conducive environment for investors, even with a higher house and unit sales price (thus, entry price) in the past 12 months to Q1 2026.
