Oatley & Surrounds Market Update
2nd 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 $2,010,000and a median unit price of $810,000in Q3 2025.This represents price stability for houses in the past 12 months to Q3 2025,and a price growth of 6.8%for units Atthe same time sales grew by 45.2%(to 45sales in Q3 2025) for houses and 37.7% (to 73sales in Q3 2025)for units. There is a highly demanded market, creating a buffer to higher interest rates (hence price stability and growth). With a limited number of new supply planned between 2024-2026it is likely prices will increase. Thus, now is an ideal time forinvestors and home buyers to act.
Q3 2025
Postcode 2223– Oatley & Mortdale£ will see approximately$45.2Mofnew projectscommencingconstruction between2024and2026
AVERAGE DAYS ON MARKET Q3 2025
40 $2.0M $810K
Q3 2025
AVERAGE DAYS ON MARKET Q3 2025
Several residential and mixed-use projects are set to commence in postcode 2223*between 2024and 2026, including:
• 95-99 Railway Parade Units & Commercial Tenancies (28 Units)
• 50 Rosa Street (5 Townhouses)
• 29Ada Street (5 Townhouses)
• 28Martin Place (5 Units)
Although there are several residential projects planned, this delivers mostly units to postcode 2223£. This can assist with some demand but will not be enough considering Q3 2025sales (45 houses and 75 units). Further, there is only a few new stand-alone houses planned, suggesting a potential undersupply. This will push prices up even further, for all stock types (not just houses).
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 Q3 2024and Q3 2025 have is still at a premium forhouses, however at a slightly lower rate of 9.1%. This indicates that despite price stability for houses, 2223*is still a seller’s market. The unit market now also favour sellers, as unit discounts have swung from -3.4% in Q3 2024to 2.6%in Q3 2025.This suggests buyers must offer above the first listed price. With an undersupply ofnew housing, buyers must act fast.
Median house price within the Postcode of 2223*have mostly become more affordable between Q3 2024 – Q3 2025, with the exceptions being Mortdale and Penhurst. Units have mostly recorded positive price growth, as buyers shift preferences to lower priced stock.
Most of the homes sold in Postcode 2223* in 2024/2025# were in the premium price point, of $2,150,000and above (40.3%). The most affordable price point of less than $1,399.999is only 9.7% of sales. Most of unit sales (33.0%) were in the premium price bracket of $900,000and above but had 17.3%of sales in the most affordable price point of less than$599,999.Therefore whilst Postcode 2223*is a premium market, there is still a home for every budget.
MARKET COMPARISON
$900,000 andabove
RENTAL GROWTH 2025€
House rental yields across Postcode 2223¥ was 2.2%as of September 2025, slightly below the Sydney Metro (2.7%). Thatsaid, median house rental price increased by 3.0%in the past 12 months to Q3 2025, at$850 per week. At the same time, the number of houses rented declined, by -27.1% (to 35 houses) in Q3 2025; thus, an undersupply. There is a highly demanded and competitive house rental market in Postcode 2223¥. This benefits investors, especially with a stable median house sale price (thus, entry price) in the past 12 months to Q3 2025.
2-bedroom houses have provided investors with +16.2%rental growth annually, achieving a median rent of $755per week.
Postcode 2223¥ recorded a vacancy rate of 1.1%in September 2025, slightly below the Georges River LGA (1.3%) and Sydney Metro (1.3%). Vacancy rates have fluctuated in the past 12 months but overall showed an increasing pattern; due to an increase in investors Thatsaid, a 1.1% vacancy rate is still well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, thus quicker occupancy of rental homes in 2223¥,which is conducive forinvestment.
RENTAL VACANCY RATES 2025
Postcode 2223 Georges River LGA Sydney Metro REIA 'Healthy' Benchmark
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 – Q3 2025 (01/01/2025 – 30/09/2025) 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 Q3 2024 (01/07/2024 – 30/09/2024)and Q3 2025 (01/07/2025 – 30/09/2025) house median rent figures.
¥ Rental market data encapsulates aggregate property conditions within the postcode of 2223.
§ Rental yields shown are as reported as of September 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.
