Penrith Property Market Update 1st Half 2023
In Q1 2023, Penrith* recorded a median price of $872,500 for houses and $515,000 for units. This is an annual (Q1 2022 – Q1 2023) decline of -6.9% for houses and -8.0% for units. That said, on a quarterly basis (Q4 2022 – Q1 2023) median price grew marginally at 0.2% (house) and declined at a lower rate of -0.5% (units). This suggests cash rate hikes did translate into the market, but consumer confidence has started to return. Total sales did decline annually, by -16.1% (houses) and -13.4% (units), thus a market undersupply. For those seeking a more affordable market, time is of the essence
Average vendor discounts between Q1 2022 and Q1 2023 have widened to a higher discount of -4.4% for houses and -3.9% for units. Market conditions in Penrith still favour buyers, as sellers are willing to accept below the first list price. That said Q1 2023 vendor discount is not as high as mid-late 2022, suggesting the market is normalising. Thus first home buyers must act fast.
House rental yields in Penrith was 4.4% in March 2023, well above Sydney Metro (2.9%). Furthermore in the 12 months to Q1 2023 median house rental price increased by 10.0% to sit at $550 per week, alongside a 17.7% increase in the number of houses rented (to 213 rentals). Average days on market remained at a low 21 days in Q1 2023. A similar pattern can be seen in the unit rental market, confirming Penrith* as an attractive investment option.
4+ bedroom houses have provided investors with +12.5% rental growth annually, achieving a median rent of $650 per week.
Penrith recorded a vacancy rate of 0.8% in March 2023, below Sydney Metro’s 1.3% average. Vacancy rates in Penrith have slightly fluctuated in the past 18 months. A slight uptick in the past 6 months is due to investors capitalising on a tight rental market, however it is still below the Real Estate of Institute of Australia’s healthy benchmark of 3.0%. These key indicators create a conducive environment for investors, even if median prices have started to normalise in the past quarter.
