Port Stephens Property Market Update 2nd Half of 2021

In Q3 2021, Port Stephens recorded a median house price of $870,000, and a median unit price of $545,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 28.9% for houses and 17.1% for units. Between Q3 2020 – Q3 2021 total house sales slowed, down by -8.1% (to 125 sales), and total unit sales increased by 4.6% (to 91 sales). There is an undersupply in the Port Stephens house market, as exponential price growth is coupled with a lower number of sales transactions. Now is an ideal time for homeowners to sell in Port Stephens, and benefit from a highly demanded market.

Average vendor discounts between Q3 2020 and Q3 2021 have tightened for both property types, to -1.0% for houses and -2.9% for units. Market conditions have trended to favour sellers since the initial peak of COVID in 2020, where buyers are paying closer to the initial listing price. That said Q3 2021 has seen a slight easing back from the premium conditions seen in Q2 2021.

In September 2021, house rental yields in Postcode 2315 were recorded at 3.6%. In the 12 months to Q3 2021 the median house rental price increased by 15.8% to reach $550 per week, further complemented with average days on the market declining by -22.2% (to 14 days). Overall, this represents a strong rental market for investors throughout 2021 and in 2022.

2 bedroom houses have provided investors with +22.9% rental growth annually, with a median rent of $430 per week.

Also in September 2021, Postcode 2315 recorded a vacancy rate of 0.5%, slightly above Port Stephens LGA (0.4%) but well below Sydney Metro (2.7%). Vacancy rates in Postcode 2315 have dropped significantly since the peak of COVID-19 in mid-2020 and have trended low since September 2020, well below the Real Estate Institute of Australia’s benchmark of 3.0%. A healthy rental demand exists, and investors can be confident of a conducive investment environment in the area.