Penrith Property Market Update 1st Half 2025
Penrith is in Greater Western Sydney and nestled on the banks of the Nepean River, located about 45 minutes from Sydney CBD. Penrith offers a mix of outdoor adventures, cultural experiences and family activities. With excellent transport to Sydney CBD and plenty of local parks, schools and shopping centres, Penrith is an ideal area to live.
Property Trends
In Q1 2025, Penrith recorded a median house price of $1,005,000 and a median unit price of $659,250. This is an annual (Q1 2024 – Q1 2025) price growth of 6.8% for houses and 8.6% for units. Comparing Q1 2024 and Q1 2025, total sales declined by -11.8% for houses (to 584 sales) and increased by 10.6% for units (to 449 sales). This confirms there is an undersupplied house market and a highly demanded unit market, which created a buffer against higher interest rates (hence price growth). The increase in unit sales and higher price growth is due to low house stock, as buyers pivot from looking for a house to a unit; thus, an ideal time for unit owners to sell.
Project Development
Penrith will see approximately $3.7B of new projects commencing construction in 2025. A key mixed-use development in the pipeline is Winter Sports World, which is estimated to attract 200,000 unique visitors each year. For housing stock, approx. 21 townhouses, 1,406 units, 4 dwellings, and 388 lots are planned in 2025. With most of the new stock being units, the current undersupply of houses will continue. This will push prices up further for the remainder of 2025, for all stock types.
Rental Market & Growth
House rental yields in Penrith were 3.0% as of March 2025, higher than Sydney Metro (2.7%). Median house rental price increased by 6.4% in the past 12 months to Q1 2025, at $628 per week; whilst the number of houses rented decreased by -2.3% (to 167 houses). The unit market shows a similar pattern, with median unit rental price increasing by 5.7% (to $560 per week) and the number of units rented declining by -19.4%. This suggests an undersupplied rental market, which benefits investors.
Vacancy Rates & Property Investment
Penrith recorded a vacancy rate of 0.6% in March 2025, well below the Penrith LGA average of 1.4% and Sydney Metro’s 1.3%. Vacancy rates have fluctuated slightly in the past 12 months but overall showed a declining pattern. A 0.6% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in Penrith. This is conducive for investment, even with higher property sale prices in Q1 2025.
