Penrith Attracts Investors Keen for Growth Potential

 

Penrith, NSW (4 September 2014) – With the median price of residential homes in the Penrith, NSW, market recording a 13.5% growth over the past 12 months to June 2014, the area continues to gain in popularity and attract those looking for a strong capital growth investment.

According to a report prepared by PRD nationwide Research Department, the forecast for the region is positive as overall supply in central Sydney is restricted, sending buyers out to the west of the city. Penrith, located 50 km away from the CBD, has recorded the strongest performance in the region over the past 10 years.

PRD nationwide Research Analyst Harrison Hall noted that in the past five years the price of houses has grown 29.2% and for units, the growth is topping 18.6%. “The area is predominantly families and couples, however demographics are expected to become more diverse thanks to more employment opportunities,” he said.

Hall noted that the government’s planned infrastructure projects totaling approximately $7.1 billion is seen as very attractive to those looking to invest.

The large projects that are drawing interest to the area include: $2.5bn Sydney Science Park, which will include research and development areas, education facilities and student accommodation; the $850m Penrith Panthers Riverlink Precinct, which will include retail, residential, aged care, and commercial; and the $220m Nepean Green site, set to include apartments, tavern and retail.

PRD nationwide Penrith Principal Darren Latty said he was enthusiastic about the enormous upswing in the area. “We are seeing an increase in the number of outside investors. The long-term infrastructure plan is a main selling point, as well as higher than average rental returns on investment properties.”

Investors currently make up around 50% of the market, and have been coming from all areas of the metropolitan area. One recent PRD nationwide auction saw 31 registered bidders with 29 being investors.

“On the ground, we are seeing a high volume of people at open houses,” said Latty. This relates to new projects off the plan. Everything we put on the market is selling straight away and achieving higher than average yield.”

With a unit rental market growth over the past 12 months at 2.4 per cent, the average yield is approximately 4.5 per cent.

“The main points of attraction for buyers are good connectivity, affordability and strong growth prospects,” Hall said.

 

 

 

 

Article Source: http://www.prdnationwide.com.au

Pictures : Google Image