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Sydney suburb attracting high demand

A western Sydney suburb is seeing high demand and low vacancy, with the median price of units increasing by 3.7 per cent in the past 12 months.

Kingswood in the Penrith Local Government Area (LGA) is also recording rental returns of six per cent, according to PRDnationwide who said investors are turning to the suburb in the hope of capitalising on the high demand for attached dwelling accommodation.

PRDnationwide research analyst Oded Reuveni-Etzioni said Kingswood was shaping up to be a great option for investors, with affordable properties in the sub-$400,000 bracket delivering strong returns.

"Investors are pocketing high rental returns as tenants clamor for medium density product that is close to major health and education facilities," he said.

"Values are being pumped up by the slow supply of new residential stock and we should see these prices increase and a high level of enquiry continue into 2014."

The agency said enquiry numbers have reached record levels from both investors and homebuyers who seek proximity to the Nepean Hospital and University of Western Sydney.

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