Penrith Property Market Update 2nd Half 2025
Penrith is in Greater Western Sydney and nestled on the banks of the Nepean River, located about 45 minutes from Sydney CBD, New South Wales. 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 Q3 2025, Penrith recorded a median house price of $1,103,750, and a median unit price of $671,000. This represents an annual (Q3 2024 – Q3 2025) price growth of 9.0% for houses and 3.7% for units.
Comparing Q3 2024 – Q3 2025, sales declined by -5.0% for houses (to 614 sales in Q3 2025) but increased by 6.3% for units (to 404 sales in Q3 2025). There is an undersupply of houses and a high demand for units, which created a buffer against higher interest rates, hence price growth. Thus, now is an ideal time for owners to capitalise, especially with very few new houses planned for 2025 in Penrith.
Project Development
Penrith will see approximately $2.0B of new projects commencing construction in 2025. A key mixed-use project in the pipeline is Mayfair Mixed Use Development, which is due to deliver 286 apartments, shops and office space.
For housing stock, approximately 333 lots, 21 townhouses, 1,023 units, and 4 dwellings 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 2.9% in September 2025, higher than Sydney Metro (2.7%). This was paired with a 4.8% increase in median house rent price in the past 12 months to Q3 2025, at $650 per week.
The number of houses rented increased by 5.9% in the past 12 months, to 233 rentals in Q3 2025. A similar pattern, of higher rents and more properties rented, can be seen in the unit market. This suggests there is a highly demanded rental market in Penrith, in good news for investors looking for a more affordable option to Sydney Metro.
Vacancy Rates & Property Investment
Penrith had a vacancy rate of 0.6% in September 2025, lower than Penrith LGA’s and Sydney Metro’s (both 1.3%). Vacancy rates in Penrith have remained low in the past 12 months, below 1.0%, signalling a tight rental market.
Further, 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 creates a conducive environment for investors, even with a higher house and unit sales price (thus, entry price) in Q3 2025.
