Oatley & Surrounds Property Market Update 2nd Half 2025
Oatley & Mortdale are suburbs located southwest of the Sydney CBD in the Georges River Council area in New South Wales. 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 includes suburbs: Oatley, Mortdale, Hurstville Grove, Penhurst, Lugarno and Peakhurst Heights) recorded a median house price of $2,010,000 and a median unit price of $810,000 in Q3 2025. This represents price stability for houses in the past 12 months to Q3 2025, and growth of 6.8% for units. Sales grew by 45.2% (to 45 sales in Q3 2025) for houses and 37.7% (to 73 sales in Q3 2025) for units. The property market is in high demand, creating a buffer to higher interest rates (hence stability and growth). With a limited number of new supply in the pipeline in 2024–2026 it is likely prices will increase. Thus, now is an ideal time for investors and home buyers to act.
Project Development
Postcode 2223 – Oatley & Mortdale will see approx. $45.2M of new projects commence construction between 2024–2026; including 33 units/apartments, 10 townhouses and 3 houses. Whilst this will assist with some of the demand, when compared to Q3 2025 sales (45 houses and 73 units) it is not enough. There will still be an undersupply in the market for all property types, which will push prices up.
Rental Market & Growth
House rental yields in Postcode 2223 were 2.2% as of September 2025, below Sydney Metro (2.7%). Median house rental price increased by 3.0% in the past 12 months to Q3 2025, at $850 per week. The number of houses rented declined, by -27.1% (to 35 houses) during this time; thus, an undersupply. There is a highly demanded and competitive house rental market in Postcode 2223. This benefits investors, especially with a stable median house sale price (thus, entry price) in the past 12 months to Q3 2025.
Vacancy Rates & Property Investment
Postcode 2223 recorded a vacancy rate of 1.1% in September 2025, slightly below the Georges River LGA (1.3%) and Sydney Metro (1.3%). Vacancy rates have fluctuated in the past 12 months but overall showed an increasing pattern; due to a higher number of investors entering the market. That said, a 1.1% vacancy rate is still well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental homes in Postcode 2223, which is conducive for investment.
