Port Stephens Property Market Update 2nd Half of 2020
In Q3 2020, Port Stephens recorded a median house price of $655,000, and a median unit price of $450,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 3.1% for houses and of 4.7% for units. Between Q3 2019 – Q3 2020 total sales increased, by 37.2% for houses (to 129 sales) and by 73.9% for units (to 80 sales). Median price growth and increased sales activity suggest real capital growth in the area, in contrast to general COVID-19 predictions. This indicates high market resilience in Port Stephens, thus creating an ideal market for real estate transactions.
Average vendor discounts between Q3 2019 and Q3 2020 have tightened to -5.3% for houses, and widened to -6.5% for units. Market conditions in Port Stephens continue to favour buyers overall, as sellers are willing to negotiate below their initial listing price. Now is the time to enter the market.
In September 2020, house rental yields in Postcode 2315 were recorded at 3.1%. In the 12 months to Q3 2020, the median house rental price in Port Stephens grew to $475 per week, while average days on the market dropped by -33.3% (to just 18 days). Overall this highlights the resilience shown in Port Stephen’s rental market throughout COVID-19.
4+ bedroom houses have provided investors with +5.8% rental growth annually, with a median rent of $550 per week.
Also in September 2020, Postcode 2315 recorded an extremely tight vacancy rate of 0.2%, below that of Port Stephens LGA already tight 0.5%, and well below Sydney Metro (3.5%). Vacancy rates in Postcode 2315 is now at a historical low, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, and continuing on a declining trend even amidst COVID-19 conditions. This confirms there is an ongoing healthy rental demand, which benefits investors.