Port Stephens Market Update 2nd Half 2024
FROM LAST HOUSE MEDIAN PRICE HOUSE RENTAL PRICE
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 2024 – Q3 2024)price growth of 1.0%for houses and 26.0%for units. Comparing Q3 2023– Q3 2024total sales increased, by 6.8% for houses (to 110sales in Q3 2024)and by 19.6% for units (to 67 sales in Q32024). This suggests a highly demanded market, which has created a buffer against higher interest rates. With the continued price growth in the market, now is an ideal time for owners to capitalise ontheir investments. Most of the new planned stock are units, thus house buyers need to act fast. 79
PRICE
RENTAL PRICE
HALF YEAR
Port Stephens will see approximately $163.1Mofnewprojectscommencing constructionbetween2024and2025
These projectswill stimulate economic growthandcreatenew jobopportunitiesin PortStephens.This will have aspill-over impacton the real estatemarket,in the formofhigher demandforhousing.
There aremultiple residential and mixed-use projectsplanned for 2024 that will help boost supply in the Port Stephens area*,including:
• Church Street Mixed Use Development (81 Units)
• 121-123Old Main Road Duplex (4 Dwellings)
• Kurrawa Close(17 Apartments)
MEDIAN PRICE Q3 2024 MEDIAN PRICE Q3 2024
AVERAGE DAYS ON MARKET Q3 2024
$1.05M $788K
83 $520 HOUSE UNIT 21 23 $620
AVERAGE DAYS ON MARKET Q3 2024
• Donald Street (27 Units)
• Yacaaba Street (23 Apartments)
• 5 Donald Street (5 Apartments)
Although there arenew ready-to-sell units planned, basedno Q3 2024sales figures this will not satisfydemand –especially for a whole year. Combined with almost no new stand-alone houses planned, pricesare likely to increase. Dwellings
Apartments 4
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
$1,200,000
In the past 12months to Q3 2024average house vendor discount have sightly tightened, to a discount of -3.2%. Average unit vendor discount have widened, to a greater discount of -4.9%. Market conditions in Port Stephens* continue favourbuyers, where vendors are willing to sell below the initial listing price. However, housing discounts are tightening, suggesting house buyers must actfast.
The suburb of Port Stephens has historically outperformed the wider Port Stephens Local Government Area (LGA), for both houses and units. In 2024 # this trend has continued for house prices, however unit prices in the suburb have returned to parity with the wider LGA.
The dominant proportion of homes sold in Port Stephens* in 2024# was in the premium price point of $1,200,000and above (38.4%). Whilst house prices remain quite high in Port Stephens*, there are affordable options with $899,999 and below accounting for28.1% of sales. Thus there are still affordable options for first homes buyers. Furthermore, most of the units sold were in the most affordable (29.4%) price bracket of less than $599,999.The unit premium market is getting stronger, making up 20.9%of sales.
MARKET COMPARISON
Port Stephens (2315) House
Port Stephens (2315) Unit
Port Stephens LGA House
Port Stephens LGA Unit
The market comparison graph provides a comparative trend for the median price of houses and units over the past 5 years. The main LGA profiled was chosen based on the proximity to the main suburb analysed, which is Port Stephens.
PRICE BREAKDOWN 2024#
Less than $599,999
$600,000 to $699,999
$700,000 to $799,999 $800,000 to $899,999 $900,000 and above
RENTAL GROWTH 2024€
House rental yields in Port Stephens ¥ was 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 $620per week. During this time the number of houses rented increased by 25.0%,to 85rentals 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 74units in Q3 2024. Overall, this suggests a highly demanded unit rental market, which is good news for investors.
3-bedroom houses have provided investors with +5.1% rental growth annually, achieving a median rent of $620per week.
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. Further, 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. This is conducive for investment.
RENTAL VACANCY RATES 2024
PortStephens (2315)¥
PROJECT DEVELOPMENT MAP 2024-2025 ₳
PORT STEPHENS
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REFERENCES
* Port Stephens sales market data and key indicators encapsulates aggregate property market conditions within the suburbs of Anna Bay, Corlette, Nelson Bay, Salamander Bay, Shoal Bay, and Soldiers Point.
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2024 encapsulates sales transactions for Q1 - Q3 (01/01/2024– 30/09/2024)only, other years encapsulates sales transactions for the full year (i.e 01/01 to 31/12 of the relevant year).
€ Annual rental growth is a comparison between Q3 2023 (01/07/2023 – 30/09/2023) and Q3 2024 (01/07/2024 – 30/09/2024) house median rent figures.
¥ Port Stephens rental market data encapsulates aggregate property conditions within the postcode of 2315.
§ Rental yields shown are as reported as of September 2024.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within the suburbs of Anna Bay, Corlette, Nelson Bay, Salamander Bay, Shoal Bay, and Soldiers Point.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2024.
