14 | Insights H1 2026 Liz Prasad of Commercial Penrith says, “Property sales have started the new year with renewed momentum. Buyer sentiment has shifted from caution to action, as more parties progress to formal offers.” Retail investment assets continue to perform solidly, with yields generally sitting in the 4.8% to 5.2% net return range, reflecting sustained demand for well-located, securely leased neighbourhood and convenience-based centres. In the Penrith CBD, Liz says, “Development activity remains constrained. Ongoing challenges including flood evacuation requirements, building height limitations, and elevated construction costs have reduced the pool of active developers pursuing site acquisitions. As a result, enquiry for CBD development sites is currently being driven more by private investors and potential owneroccupiers rather than large-scale developers.” Penrith’s industrial market experienced a softer finish to 2025, with buyers showing resistance to the premium pricing levels that had previously been achieved. Liz explains, “This shift is largely linked to upcoming supply, particularly projects such as Nepean Business Park, which has caused some purchasers to adopt a wait-and-see approach until these developments are completed and released to the market.” Penrith Office Industrial Retail Rents p/m² Vacancy Yields Rates p/m² Six-month market outlook Office Industrial Retail Rents p/m² $350-$400 $175-$220 $500-$600 Vacancy 10-15% 7% 7% Yields 6-7% 4-5% 5.5-6% Rates p/m² $6,500 $4,500-$5,000 $8,000-$10,000 Current market conditions $2,550,00 52 Cox Avenue, Kingswood Recent Notable Transactions SOLD $300Net p/m² Shop 1/87-93 Henry Street, Penrith LEASED Liz Prasad liz.prasad@rhc.com.au For more information, contact:
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