Port Stephens Property Market Update 1st Half 2023
In Q1 2023, Port Stephens* recorded a median house price of $1,050,000, and a median unit price of $666,000. This represents annual (Q1 2022 – Q1 2023) growth of 4.4% for houses and a softening of -0.2% for units. However on a quarterly basis (Q4 2022 – Q1 2023) median house price grew faster, by 9.1%. Thus cash rate hikes might have dampened price growth temporarily, however consumer confidence has returned. House sales declined by -22.4% in the past 12 months, thus recent price growth is due to an undersupply of stock. There is a more affordable unit market, however time is of the essence.
Average vendor discounts between Q1 2022 and Q1 2023 have widened to larger discounts for both houses and units, at -5.0% and -6.5% respectively. This suggest the Port Stephens* market continue to favours buyers, as vendors are willing to accept below the initial listing price. Q1 2023 marks the highest average discount in the past 18 months, thus an opportunity for buyers.
House rental yields in Port Stephens¥ was 3.3% in March 2023, much higher than Sydney Metro (2.9%). Further, median house rental price increased by 3.4% (to $610 per week) in the past 12 months to Q1 2023, and the number of house rented increased by 23.8% (to 78 rentals). Average days on the market increased to sit at 29 days in Q1 2023. The same pattern can be seen in the unit rental market, thus confirming a resilient rental market in Port Stephens¥ .
3 bedroom houses have provided investors with +14.6% rental growth annually, achieving a median rent of $590 per week.
Port Stephens¥ recorded a vacancy rate of 3.1% in March 2023, well above Sydney Metro’s 1.3%. The sudden spike can be attributed to investors capitalising on a tight rental market and extremely low vacancy rates since 2020. Further, vacancy rates spike is a common trend across New South Wales. Traditionally vacancy rates in Port Stephens have sat within the Real Estate of Institute of Australia healthy benchmark of 3.0%, thus a conducive environment for long term investment.
