Oatley & Surrounds Market Update
1st Half 2025
Postcode 2223,(which for this report include suburbs: Oatley, Mortdale, Hurstville Grove, Penhurst, Lugarno and Peakhurst Heights) recorded a median house price of $2,022,500and unit price of $780,000in Q1 2025. This is an annual (Q1 2024– Q1 2025) price growth of 3.7% for houses and 7.1% for units. Comparing Q1 2024 and Q1 2025,sales declined by-1.2% (to 82sales in Q1 2025) for houses, but increased by 30.2% (to 56 sales to Q1 2025) for units. This confirms there is an undersupply of houses and a highly demanded market for units; which created a buffer against higher interest rates and underpinned continuous price growth. Now is an ideal time for owners to capitalise on their investments.
HOUSE SALES YEAR HALF YEAR CHANGE FROM LAST
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
SALES
Postcode 2223-Oatley & Mortdale£ will see approximately$42.7Mofnew projectscommencingconstruction between2024-2026
MEDIAN PRICE Q1 2025
AVERAGE DAYS ON MARKET Q1 2025
44 $2.0M $780K
MEDIAN PRICE Q1 2025
AVERAGE DAYS ON MARKET Q1 2025
Residential and mixed-use projects set to commence construction inpostcode 2223*in 2024and 2026 include:
• 95-99 Railway Parade Units & Commercial Tenancies (28 Units)
• 50 Rosa Street (5 Townhouses)
• 26 Martin Place Units (5 Units)
• 18A Letita Street (2 Dwellings)
Most of the residential projects in the pipeline for postcode 2223£ plan to deliver units. Whilst this assist with answering some market demand, it is not enough. There is still very little new stand-alone new houses planned; thus, the undersupply of houses will remain. Further, townhouses and units will take time to build. Thus, in the short term, this will push prices up further for the rest of 2025; for all stock types (not just house prices).
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 Q1 2024 and Q1 2025 have continued to trend as a premium, increasing to 7.2% for house but lowering to 0.1% for units. With an undersupply of stock, and limited number of new ready-to-sell planned 2025, there is a higher chance of premiums than discount. Thatsaid, with lower unit premium in Q1 2025,close to the first list price, now is an ideal time for buyers to act.
Median house price in suburbs within the Postcode of 2223 have mostly become more affordable between Q1 2024–Q1 2025, with the exceptions being Oatley and Peakhurst Heights. Units have mostly recorded positive price growth, as buyers shift their preference to a lower priced stock.
Most of the homes sold in Postcode 2223*in 2024/25#were in the premium price bracket of $2,300,001and above (32.7%). Similarly, units had most sales (31.5%) in the most premium price bracket of $900,000 and above. Despite some price growth in the past 12months, 28.2% of houses were still sold in the most affordable price bracket of less than $1,700,000;and 34.9% of units were sold in the combined affordable price bracket of less than $699,999. This is in good news for buyers, however, may not last.
MARKET COMPARISON
RENTAL GROWTH 2025€
House rental yields across Postcode 2223¥ were 1.8%as of March 2025,slightly lower thanthe Sydney Metro average (2.7%). That said, median house rental price in the area have increased by 15.4% in the past 12months to Q1 2025, at $900 per week. In the same timeframe the number of houses rented also increased, by 87.5%(to 45 houses) in Q1 2025. This indicates a highly demanded and competitive house rental market in Postcode 2223¥,which will benefit investors.
3-bedroom houses have provided investors with +1.3%rental growth annually, achieving a median rent of $800per week.
Postcode 2223¥ recorded a vacancy rate of 1.2%in March 2025, on par with Sydney Metro’s 1.3%. Vacancy rates have fluctuated in the past 12months, after hitting a high of 1.8%in December 2024, due to investors returning to market and the small size of the rental market. Vacancy rates declined significantly in the past 3 months, indicating a tighter rental market.Further, a 1.2% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in the area, which is conducive for investment.
RENTAL VACANCY RATES 2025
Postcode 2223¥
PROJECT DEVELOPMENT MAP 2024-2026 ₳
POSTCODE 2223 - OATLEY & MORTDALE
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REFERENCES
* Postcode 2223 sales market data and key indicators encapsulates aggregate property market conditions within the suburbs of Mortdale, Oatley, Hurstville Grove, and Penhurst, Lugarno, Peakhurst Heights.
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2025 encapsulates sales transactions for Q1 (01/01/2025 – 31/03/2025) only, other years encapsulates sales transactions for the full year (i.e 01/01 to 31/12 of the relevant year).
€ Annual rental growth is a comparison between Q1 2024 (01/01/2024 – 31/03/2024) and Q1 2025 (01/01/2025 – 31/03/2025) house median rent figures.
¥ Rental market data encapsulates aggregate property conditions within the postcode of 2223.
§ Rental yields shown are as reported as of March 2025.
₳ 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 the suburbs of Mortdale, Oatley, Hurstville Grove, and Penhurst, Lugarno, Peakhurst Heights.
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.
