Port Stephens Property Update 1st Half of 2020
In Q1 2020, Port Stephens recorded a median house price of $695,000, and a median unit price of $460,000. This represents annual (Q1 2019 – Q1 2020) median price growth of 2.2% for houses and of 3.7% for units. Between Q1 2019 – Q1 2020 total sales in both markets increased, by 4.4% for houses (to 95 sales) and by 9.7% for units to 68 sales. The Port Stephens market has proven to be resilient with real capital growth, as both market sales and prices increased simultaneously. Now is an ideal time to transact in Port Stephens.
Average vendor discounts between Q1 2019 and Q1 2020 have tightened for both property types, to -4.0% for houses and -3.3% for units. Market conditions in Port Stephens is attractive to both buyers and sellers, as sellers can achieve final sale prices closer to first list price whilst buyers can still benefit from a discount.
Over the past 12 months, house rental yields in Port Stephens increased slightly to reach 3.5% in December 2019. This is higher than Sydney Metro’s 2.7% rental yield. Port Stephens house rental market is in a healthy position, especially when combined with the 4.4% increase in house rental demand in the 12 months to Q1 2020).
4+ bedroom houses provided investors with +4.0% rental growth annually, achieving a median rent of $525 per week.
Port Stephens recorded a vacancy rate of 1.4% in December 2019. This represented a sharp decline in vacancy rates in the past 6 months, which indicates a significant improvement in rental demand. Port Stephens’ vacancy rate is well below the Real Estate Institute of Australia healthy benchmark of 3.0% and Sydney Metro’s 3.6%. With a lower median price compared to Sydney Metro, Port Stephens present itself as an ideal more affordable alternative for investment.