Port Stephens Property Market Update 2nd Half 2024
Port Stephens is located on the north coast of New South Wales about 150km for Sydney. It is known for its natural beauty, vibrant marine life and breathtaking beaches and is a perfect escape from city life. Combined with the charming towns of Nelson Bay and Shoal Bay and all their amenities, makes Port Stephens and ideal place to move.
Property Trends
In Q3 2024, Port Stephens recorded a median house price of $1,050,000 and a median unit price of $787,500. This is an annual (Q3 2023 – Q3 2024) price growth of 1.0% for houses and 26.0% for units. Comparing Q3 2023 – Q3 2024, sales increased by 6.8% for houses (to 110 sales in Q3 2024) and by 19.6% for units (to 67 sales in Q3 2024). This suggests a highly demanded market, which created a buffer to higher interest rates. With the continued price growth, now is an ideal time for owners to capitalise on their investments. Most of the new planned stock are units, thus house buyers must act fast.
Project Development
Port Stephens will see approximately $163.1M of new projects commencing construction in 2024. Most of these developments will be a mix of commercial, residential, and mixed-use projects. There are 189 units and 4 dwellings planned, which will assist with housing stock in Port Stephens; however, this will not be enough to satisfy current demand. With very little new ready-to-sell housing planned, an undersupply is imminent, suggesting that further price growth is highly likely.
Rental Market & Growth
House rental yields in Port Stephens were 2.9% in September, slightly above Sydney Metro (2.8%). This was paired with a 3.7% increase in median house rent price in the past 12 months to Q3 2024, at $620 per week. During this time, the number of houses rented increased by 25.0%, to 85 rentals in Q3 2024. Similarly, median unit rent price rose by 10.6% to $520, and the number of units rented increased by 5.7%, to 74 units in Q3 2024. This suggests a highly demanded unit rental market, which is good news for investors.
Vacancy Rates & Property Investment
Port Stephens recorded a vacancy rate of 0.9% in September 2024, on par with Port Stephens LGA’s 0.8% but well below Sydney Metro’s 1.6% average. Vacancy rates in Port Stephens have significantly declined in the past 6 months, signalling a tighter rental market. Furthermore, a 0.9% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental homes in Port Stephens. This indicates a conducive environment for investment.
