The Most Affordable Suburbs In Port Stephens

1 June 2024

By Brad East | CEO

What are the most affordable suburbs in Port Stephens?

Finding the most affordable suburbs in Port Stephens has changed tremendously over the last decade or so. The area was once touted as one of the most affordable ocean-based regions in New South Wales. However, since the COVID pandemic, the region has become one of the hottest property markets in Australia and many suburbs now claim average house prices sprawling into the seven-figure range. However, some parts of Port Stephens have yet to break that scary one-million-dollar milestone. With that in mind, just what are the most affordable suburbs in Port Stephens today?

Port Stephens profile

Located directly north of Newcastle, the region of Port Stephens sits around the inlet bay of the same name. The region is dissected by the Pacific Highway giving residents direct access to Newcastle and Sydney to the South and places like Coffs Harbour to the North. This means that many of the region’s primary towns such as Raymond Terrace and Medowie straddle the main road. However, the other main cluster of suburbs sit nestled in a small isthmus of land between Port Stephens and the Tasman Sea where you find thriving tourist towns such as Nelson Bay and Shoal Bay.

Before the COVID pandemic, the region was touted as one of the top places to buy with a 2017 Domain report listing prices in towns such as Shoal Bay and Anna Bay averaging a price of $450,000 and $440,000 respectively. Fast forward several years and that was no longer the case. A January 2024 report by CoreLogic showed that prices in Shoal Bay had risen over 70% with properties now averaging $860,000 – making it the highest increase in all of New South Wales. It’s a trend that saw the neighbouring suburb Fingal Bay smash the seven-figure milestone with average prices exceeding $1.1m.

Whilst these increases had fallen slightly compared to the peaks in early 2022, the average prices are still well above what they were just a few years previously. So are there still affordable suburbs in Port Stephens?

The most affordable suburbs in Port Stephens revealed

Raymond Terrace

The answer to finding the most affordable suburbs in Port Stephens can be found in the region’s principal town: Raymond Terrace. Located directly on the Pacific Highway, this town of just over 13,000 is the main hub for Port Stephens Council. Not only does it host the main facilities for the region, but it’s also well-regarded for jobs, schools and shopping. Despite having all these features, Raymond Terrace is one of the most affordable suburbs in Port Stephens to live or rent. The average house price for the town is $635,000 whilst the average house price is 440,000. The values have also remained steady for several years with average values fluctuating by only 2-3%. It’s a real winner for anyone wanting to move to this thriving region.

Population: 13,453

Average House Price: $635,000 (2024)

Average Unit Price: $440,000

Average Rental Value: $530 p/w


The second largest town in Port Stephens, Medowie is known thanks to its close proximity to the Williamtown Air Force Base. These close links to the airport have seen the town grow to 10,000 in population and become of the key towns within the area.  Its thriving community – one based around the air base – has seen property prices increase to $848,750 – a 30% increase on its value before the pandemic in 2020. Yet, those looking for a comfortable family home will count their blessings as the average 4-bedroom home goes for $875,000 which is still below the average compared to other towns in the region.

Population: 10,879

Average House Price: $848,750

Average Rental Value: $620 p/w


Located on the Karuah River, the namesake town is situated on the northern edge of Port Stephens straddling the border with the Mid-North Coast. Yet, this small town of 1500 offers plenty to enjoy. The town is known for its thriving oyster industry with many signs of its value to the town still valuable today. Despite all this, the town is one of the most affordable places in Port Stephens to pick up a property with average house prices coming in directly at the $600,000 milestone. With 4-bedroom houses selling for just under 750,0000, this makes Karuah a perfect place to find a great family home for half the price as other towns in the area.

Population: 1,411

Average House Price: $600,000

Average Rental Price $530 p/w

Nelson Bay

Out of all the areas in the coastal cluster south of Port Stephens, the main town of Nelson Bay provides some great opportunities to own property in a stunning scenic location. The town of just over 6,000 thrives on tourism and generates as much economy from renting out beach houses as it does from those permanently based in it. That reflects highly in the town having an average rent value of $630 per week – a competitive figure not too much higher than many of the other main towns in the region. Those looking to buy a property here would be better off buying a unit with average unit prices being $660,000 – a much lower figure than the $1m average value of homes in the town.

Population: 6,141

Average House Value: $1.05m

Average Unit Value: $660,000

Average Rental Price: $630 p/w

Anna Bay

A few years ago, Anna Bay was seen as one of the best destinations anywhere in Australia to grab a cheap bayside property. Fast forward to the present day and whilst this small town’s housing value has skyrocketed, it still seems great value for money. The town of 4,200 has some great beaches and stunning seascapes to entice residents to invest in a property in this thriving tourist down. Unlike many of its satellite suburbs, house prices in Anna Bay remain in the six-figure window with an average price of $930,000. Even purchasing a 4-bedroom house will fall under this barrier with this setting you back $950,000. With 3-bed units themselves averaging a value of $612,350, it makes Anna Bay one of the best-kept property secrets in Port Stephens.

Population: 4,221

Average House Value: $930,000

Average Unit Value: $617,500

Average Rental Price: $610p/w


As you can see, the Port Stephens area is one of the hottest property markets in New South Wales and generates a lot of interest. Despite all this interest, finding affordable property is not difficult. Whether your home might be in major hubs such as Raymond Terrace or Medowie or in sleepier suburbs such as Karuah or Anna Bay, there are places that won’t burn a permanent hole in your wallet. So why not take a look at these towns and discover some of the most affordable suburbs in Port Stephens today!

To seek out the best options for purchasing a home, speak to a Wise Buy Home Lender for guidance today. Our property experts can give you all the advice you need to work out the best way to get on the property ladder today. Visit our Newcastle agents today to see how they can help you find a home in one of the most affordable suburbs in Port Stephens.

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