Narellan vs Penrith

The median house price is $1.1M in Narellan and $1.1M in Penrith, so Penrith is the cheaper entry point.

For units, Narellan sits at a median of $770K against $620K in Penrith, which makes Penrith the more affordable unit market and Narellan the pricier one.

On cash flow, Narellan leads: houses there return a gross rental yield of 3.21%, compared with 2.95% in Penrith, a gap of 0.26 percentage points.

Over the past year house prices moved +6.9% in Narellan and +10.6% in Penrith (an estimate), so recent momentum favours Penrith, although both suburbs recorded growth.

Rental vacancy is 1.2% in Penrith and 2.4% in Narellan, so landlords in Penrith face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

Penrith is the bigger suburb, with a population of 17,966 against 3,358, roughly 5 times the size of Narellan; a larger suburb usually means a deeper pool of buyers and tenants.

In short: Narellan for rental income, Penrith for a lower purchase price, Penrith for recent price momentum, Penrith for the tighter rental market. Which matters more depends on whether the investor is buying for cash flow, capital growth or affordability.