Penrith Market Update 1st Half of 2020
PRD Penrith Property Market Update 1st Half of 2020 In Q1 2020, Penrith recorded a median house price of $700,000, and a median unit price of $480,000. This represents annual (Q1 2019 – Q1 2020) median price growth of 8.5% for houses and of 3.2% for units. Between Q1 2019 – Q1 2020 total house sales slowed, by -14.4% to 404 sales, while total unit sales increased by 64.2% to 243 sales. With both median prices showing growth despite varying sales volumes, the Penrith property market is showing high resilience. Now is an ideal time to transact in the market.
In Q1 2020, Penrith recorded a median house price of $700,000, and a median unit price of $480,000. This represents annual (Q1 2019 – Q1 2020) median price growth of 8.5% for houses and of 3.2% for units. Between Q1 2019 – Q1 2020 total house sales slowed, by -14.4% to 404 sales, while total unit sales increased by 64.2% to 243 sales. With both median prices showing growth despite varying sales volumes, the Penrith property market is showing high resilience. Now is an ideal time to transact in the market.
Average vendor discounts between Q1 2019 and Q1 2020 have tightened for both property types, to -1.8% for houses and -4.2% for units. Market conditions in Penrith offers a unique opportunity, as sellers can now achieve final sale prices closer to their first list price, yet buyers can still benefit from a discount.
Over the past 12 months, house rental yields in Postcode 2750 tightened slightly to reach 3.1% in December 2019. This sees the house rental market in a relatively healthy position, particularly when compared with the wider Sydney Metro, which recorded a house rental yield of 2.7%. Unit rental yields for Postcode 2750 was 4.3% in December 2019, well above that of Sydney Metro (3.6%).
4+ bedroom houses provided investors with stable rental returns annually, achieving a median rent of $550 per week.
Postcode 2750 recorded a vacancy rate of 3.9% in December 2019, which has shown an increasing trend over the past 12 months and is slightly above Sydney Metro’s 3.6% average for the same period. Investors may wish to seek to sign tenants on longer leases for increased cashflow security.