PENRITH property was nominated as one of the country's best investment options earlier this year.
Real Estate Investar's January issue reported that over the previous year, prices for sought-after homes had risen 12.5 per cent in South Penrith, 11.5 per cent in St Marys and 13 per cent in Kingswood.
The same month's issue of the real estate investment magazine, Smart Property Investment, described the Penrith region as one of NSW's fastest growing areas.
It mentioned that Penrith access to Nepean Hospital, the University of Western Sydney, shopping centres and major transport links were main attractions.
The new Thornton estate, just north of Penrith railway station, will have about 1000 homes available.
"It's all about location," a Thornton spokeswoman said.
"It's right next to a station, so some people living there may not even need a car.
"There are also the shops at Westfield on the other side."
Penrith Professional Real Estate's head of sales, Richard Heidtmann, agreed.
"We've got the infrastructure; Penrith is 40 minutes from Sydney's CBD by train and governments are looking at us as a satellite city," Mr Heidtmann said.
He also said that residents were partly driving the property prices.
"In Penrith there are people out-growing their houses who want to step up; people expecting their second or third child," Mr Heidtmann said.
"It's a good area for investment because the rental market is also high."
PRD Nationwide Penrith's residential sales manager Daniel Latty said competition between buyers was intense.
"South Penrith has always been sought after by families and people wanting to upgrade into a second home," Mr Latty said.
"Kingswood, for years, was the little brother of Penrith CBD, but with the railway, uni and hospital nearby, it's grown.
"With interest rates where they are, rent is paying for the properties."
Thornton's spokeswoman said the new estate should interest investors and home-buyers alike.
"It has a diverse range of housing, for young professionals who want to be close to transport and for older people wanting to downsize their homes," she said.
She said hundreds of people had already visited the site, indicating that housing in Penrith was much sought after.