Penrith Property Factsheet 1st Half of 2019
Penrith* recorded a median house price of $645,000 in Q1 2019, and a median unit price of $455,000. This resulted in annual (Q1 2018 – Q1 2019) growth of -7.9% for houses and -13.3% for units. Compared with the 2nd Half 2018 Penrith Research Factsheet, which reported annual (Q3 2017 – Q3 2018) growth of -3.3% for houses and -4.3% for units, properties in Penrith* have recently become more affordable. This is great news for home buyers seeking to enter the market for the first time and investors who wish to act counter-cyclically in the market.
Penrith* recorded a median house price of $645,000 in Q1 2019, and a median unit price of $455,000. This resulted in annual (Q1 2018 – Q1 2019) growth of -7.9% for houses and -13.3% for units. Compared with the 2nd Half 2018 Penrith Research Factsheet, which reported annual (Q3 2017 – Q3 2018) growth of -3.3% for houses and -4.3% for units, properties in Penrith* have recently become more affordable. This is great news for home buyers seeking to enter the market for the first time and investors who wish to act counter-cyclically in the market.
From 2017 to 2019^, key suburbs within Penrith* have seen price softening in their median house prices. One of the more resilient markets was Werrington, seeing a softening of just -4.2% in this time to arrive at a median price of $632,000. Other suburbs saw inferior performance, such as Kingwood, which experienced a price change of -17.9% to $550,000 over the same period.
Q1 2019 saw Penrith* sustain a median house rental price of $440 per week, and its unit market saw a median rental price of $380 per week. This represents growth of -2.2% and -2.1% for houses and units respectively across the previous 12 months. Penrith’s* total rental activity grew notably over this same period, growing by 43.0% for houses and 23.1% for units. This implied increase in demand has been supported by healthy average days to let of 27 days for houses and 30 days for units as of Q1 2019. Average yields of 3.2% (house) and 3.8% (unit) in Penrith* as of December 2018 also offers investors decent returns, with house yield being above Sydney Metro’s 2.9% and on-par with its unit yield (also 3.8%).
An estimated $905.0M worth of project development is scheduled to commence in the 1st half of 2019 across Penrith*. A strong balance across industrial (28.6% or $159.2M), infrastructure (26.7% or $241.7M) and residential projects (26.5% or $240.1M) is supported by both mixed-use (12.1% or $109.5M) and commercial (6.0% or $54.7M) development spending.
