Penrith Property Market Update 1st Half 2026
Penrith is in Greater Western Sydney, about 45 minutes from Sydney CBD. Penrith offers a mix of outdoor adventures, cultural experiences and family activities. Penrith has excellent transport to Sydney CBD, many local parks, schools and shopping centres.
Property Trends
In Q1 2026, Penrith recorded a median house price of $1,200,000, and a median unit price of $715,000. This is an annual (Q1 2025 – Q1 2026) price growth of 17.1% for houses and by 8.6% for units. Between Q1 2025 – Q1 2026 house sales has declined, by -28.2% (to 468 for houses in Q1 2026) and by -15.6% for unit sales (to 320 sales in Q1 2026). The house and unit market is undersupplied, which creates a buffer against multiple cash rate hikes in 2026. Thus, there is a continuing opportunity for owners to capitalise on their investments. There is a significant number of new units/apartments commencing construction in 2026, providing buyers with more options in the future.
Project Development
Penrith will see approximately $2.1B of new projects commencing construction in 2026. Most projects commencing are mixed-use in nature, addressing housing needs and simultaneously improving liveability and commercial offering. For housing stock, approx. 707 lots, 34 townhouses and 1,458 units/apartments are planned in 2026. With most of the new stock being units, the current undersupply for houses will continue. This will push prices up further for the remainder of 2026, for all stock types.
Rental Market & Growth
House rental yields in Penrith were 2.5% in March 2026, lower than Penrith LGA (2.9%) and Sydney Metro (2.8%). This was paired with a 7.1% increase in median house rental price in the past 12 months to Q1 2026, at $750 per week. The number of houses rented declined, by -8.8% in the past 12 months, to 1,602 rentals in Q1 2026. This confirms an undersupplied rental market in Penrith, which is beneficial for investors looking for a more affordable option to Sydney.
Vacancy Rates & Property Investment
Penrith recorded a vacancy rate of 0.7% in March 2026, which is lower than Penrith LGA 1.0% and Sydney Metro 1.1% average. Vacancy rates in the past 12 months have declined slightly, indicating a tighter rental market. Further, a 0.7% vacancy rate is significantly below the 3.0% benchmark, indicating there is quicker occupancy of rental homes in Penrith. This is a conducive environment for investors, even with a higher median house sales price (thus, entry price) in the past 12 months to Q1 2026.
