Blue Mountains Market Update 1st Half 2025
In Q4 2024, Blue Mountains* recorded a median house price of $910,000 and a median unit price of $720,000.This is an annual (Q4 2023 – Q4 2024)price growth of 7.1%for houses and 13.4% forunits. Comparing Q4 2023– Q4 2024,sales softened by -5.8% for houses (to 398 sales in Q4 2024), but increased by 44.4%for units (to 26 sales in Q4 2024). This suggests an undersupplied house market and a very highly demanded unit market, creating a buffer against higher interest rates - evident in price growth. Now is an ideal time to capitalise ontheir investments. With very few ready-to-sell stock planned, buyers must act fast.
HOUSE SALES YEAR HALF YEAR CHANGE FROM LAST
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
SALES
Blue Mountains£ will see approximately $59.1Mofnewprojectscommencing constructionin2025
PRICE
RENTAL PRICE
MEDIAN PRICE Q4 2024
$910K $720K
MEDIAN PRICE Q4 2024
AVERAGE DAYS ON MARKET Q4 2024
47
54
AVERAGE DAYS ON MARKET Q4 2024
The combination of commercial and mixed-use projects will stimulate local jobs and economy, as well as improve liveability for residents. This canattract more people to live in Blue Mountains.
Residential projects currently planned for construction include:
• 63Lurline Street (5 Dwellings)
• 21Stuarts Road Road (48 Land Lots)
• 54 WaratahStreet (6 Units)
• 6 Blackheath Street (6 Units)
Although new stock is planned, most will deliver units and land lots. Although this assists with answering some of the demand, it is not be enough. Further, land lots require time for construction into a house. With a low number of stand-alone houses, the undersupply is set to continue. This will push up prices even further, forall stock types.
Apartments
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
Average vendor discounts between Q4 2023and Q4 2024 have tightened to -3.8% for houses and -2.3% for units. The peak discount period has passed for houses and units (in Q3 2024). Market conditions in Blue Mountains* still favour buyers, with sellers willing to accept below the first list price. With discounts for both houses and units lessening, buyers should act quickly to take advantage.
The suburb of Springwood (2777)has been on par with the wider Blue Mountains Local Government Area (LGA) in house and unit median prices for the past 5years. House prices in Springwood have increased slightly in 2024, to sit slightly above the LGA. On the other hand, unit prices in Springwood have dipped slightly; to sit below the LGA
Most of the homes sold in Blue Mountains* in 2024were in the premium price brackets, of $1.05M and above (34.9%), in good news for investors. Thatsaid 34.0%was sold in in the lower and most affordable price brackets, which is an opportunity for first home buyers. Units shows a similar pattern, with 38.1%sold in most affordable price point of less than$649,999and 30.5%sold in the premium price point of $800,000and above.
MARKET COMPARISON
The market comparison graph provides a comparative trend for median price of houses and units over the past 5 years. The main LGA chosen was based on their proximity to the main suburb analysed, which is Blue Mountains.
PRICE BREAKDOWN 2024
$649,999 $650,000 to $699,999
$700,000 to $749,999 $750,000 to $799,999 $800,000 and above
RENTAL GROWTH 2025€
House rental yields in Springwood (2777)¥ was 3.2%as of December 2024,slightly above the Blue Mountains LGA (3.0%) and higher than Sydney Metro (2.7%). Further, median house rental price increased by 9.2%in the past 12months toQ4 2024,at $650per week. During this time, the number of housed rented decreased, by -14.2% (to 181 houses to Q4 2024). This indicates an undersupplied house rental market in Blue Mountains¥, which is beneficial to investors.
3-bedroom houses have provided investors with +12.5% rental growth annually, achieving a median rent of $620per week.
Springwood (2777)¥ recorded a vacancyrate of 0.4%in December 2024, below the Blue Mountains LGA average of 0.9% and Sydney Metro’s 2.1%. Vacancy rates have decreased in the past 12months, indicating an even tighter rental market. Furthermore, a 0.4%vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating a quicker occupancy of rental properties in Springwood (2777)¥. This creates a conducive and sustainable environment for investors, even with a higher entry price in Q4 2024.
RENTAL VACANCY RATES 2025
RENTAL
Springwood (2777)¥
PROJECT DEVELOPMENT MAP 2025 ₳
BLUE MOUNTAINS
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REFERENCES
* Blue Mountains sales market data and key indicators encapsulates aggregate property market conditions within the suburbs of Blue Mountains Local Government Area (LGA).
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2024 encapsulates sales transactions for the 2024 full year (01/01/2024 – 31/12/2024).
€ Annual rental growth is a comparison between Q4 2023 (01/10/2023 – 31/12/2023)and Q4 2024 (01/10/2024 – 31/12/2024) house median rent figures.
¥ Blue Mountains rental market data encapsulates aggregate property conditions within the postcode of 2777.
§ Rental yields shown are as reported as of December 2024.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within Blue Mountains LGA.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2025.
