Port Stephens Property Market Update 2nd Half of 2022
In Q3 2022, Port Stephens recorded a median house price of $1,228,000, and a median unit price of $692,500. This represents annual (Q3 2021 – Q3 2022) median price growth of 23.4% for houses and 28.2% for units. That said on a quarter-by-quarter (Q2-Q3 2022) basis median price grew at a slower rate, of 9.9% (houses) and 10.8% (units).
Average vendor discounts between Q3 2021 and Q3 2022 have rapidly widened for both property types, to higher discounts of -2.3% for houses and -2.8% for units. This suggest sellers are willing to negotiate below the first listing price. Q3 2022 saw the highest discount in Porth Stephens, which creates a unique opportunity for first home buyers wanting to enter the market.
In September 2022, house rental yields in Port Stephens were recorded at 3.0%, higher than Sydney Metro (2.6%). In the 12 months to Q3 2022 the median house rental price increased by 11.7% to reach $620 per week, whilst average days to let remained low at 20 days due to a lack of supply. This confirms there is a healthy level of rental demand in Port Stephens.
3 bedroom houses have provided investors with +16.0% rental growth annually, achieving a median rent of $580 per week.
Port Stephens recorded a vacancy rate of 0.7% in September 2022, below Sydney Metro’s 1.3% average. Vacancy rates in Port Stephens have slightly fluctuated over the 12 months but trended within the 1.5% mark for the past 23 months. This indicates a sustainable investment environment for investors. Vacancy rates declined between June-September 2022, which suggest a revival in strong rental demand. This translates to quicker occupancy of rental properties. A slower price growth in the past quarter (between Q2-Q3 2022) emphasises an opportunity for investors to enter the market.
