Penrith Property Market Update 1st Half of 2021

In Q1 2021, Penrith recorded a median house price of $770,000, and a median unit price of $508,500. This represents annual (Q1 2020 – Q1 2021) median price growth of 9.2% for houses and 1.9% for units. Between Q1 2020 – Q1 2021 total house sales increased, by 4.2% (to 524 sales), while units slowed by -14.2% (to 259 sales). There are real returns in capital investment in the housing market, whilst the unit market shows a potential undersupply. Overall this creates an opportune time for owner-occupiers in Penrith wishing to benefit from a highly demanded market.

Average vendor discounts between Q1 2020 and Q1 2021 have tightened for both property types, to -0.5% for houses and -3.5% for units. Market conditions in Penrith are shifting towards a sellers’ market, houses in particular, with sellers achieving final sale prices closer to their first list price. Buyers can still benefit from a discount however time is limited.

In March 2021, house rental yields in Penrith were recorded at 3.4%. In the 12 months to Q1 2021, the median house rental price has increased by 4.7% to reach $450 per week, while average days on the market declined by -32.6% (to 19 days). Overall this suggests Penrith has remained quite a resilient rental market throughout COVID-19.

3 bedroom houses have provided investors with +4.3% rental growth annually, achieving a median rent of $420 per week.

Also in March 2021, Penrith recorded a low vacancy rate of 1.3%, close to that of Penrith LGA (1.5%) and well below Sydney Metro (3.4%). Even amidst COVID-19 conditions vacancy rates in Penrith recorded a declining trend since April and December 2020, remaining below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is a healthy ongoing rental demand, creating a conducive investment environment in Penrith.