Port Stephens Property Market Update 1st Half 2024
In Q1 2024, Port Stephens recorded a median house price of $1,050,000, and a median unit price of $625,000. This represents annual (Q1 2023 – Q1 2024) median price growth of 5.0% for houses and 0.8% for units. Total sales increased between Q1 2023 – Q1 2024, by 10.8% (to 113 sales) for houses and by 60.4% for units (to 85 sales). Confidence is high in Port Stephens, with properties in high demand despite higher interest rates, which created a buffer to prices, especially with houses. Now is an ideal time for owners to capitalise on their investment. There is slower price growth for units, which is an opportunity for first home buyers.
Average vendor discounts between Q1 2023 and Q1 2024 have tightened to a lower discount of -3.7% for houses and -2.2% for units. Market conditions in Port Stephens continue to favour buyers, as sellers are still accepting offers lower than the first list price. That said the market is transitioning to a seller’s market, as the level of discount becomes lower. Thus, buyers must act fast.
House rental yields in Port Stephens was 3.4% in March 2024, higher than Sydney Metro’s 2.9%. This was paired with a 6.5% increase in median house rental price over the past 12 months to Q1 2024, at $660 per week, and a -12.9% decline in the number of houses rented (at 88 houses). The unit market shows a similar trend, confirming that both rental markets are undersupplied. This confirms Port Stephens as an alternative, slightly more affordable, investment area than Sydney Metro.
2-bedroom houses recorded +11.1% growth annually, with a median rent of $500 per week.
Port Stephens recorded a vacancy rate of 2.2% in March 2024, well above Sydney Metro’s 1.1% average. Vacancy rates in Port Stephens have fluctuated significantly over the past 12 months, due to investors entering/exiting the market alongside cash rate movements. That said vacancy rates in the first quarter of 2024 have held steady and is below the Real Estate Institute of Australia's ‘healthy’ Benchmark of 3.0%, indicating there is still quicker occupancy of rental properties in Port Stephens.
