With the news that Port Stephens has been rated as the best town in Australia, property investors and downsizing retirees are rightfully turning their eyes to this pristine area. Close enough to Newcastle for all the key amenities but far enough away to keep the isolated coastal town vibe, Port Stephens offers the best of all worlds.
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. 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 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. In December 2024, a report by CoreLogic showed that prices had risen with the median unit price up to $787,500 and the median house up to $1,050,000.
With prices clearly on the rise, 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: $640,000 (Jan 2025)
Average Unit Price: $451,000 (Jan 2025)
Average Rental Value: $540 p/w (Jan 2025)
Medowie
The second largest town in Port Stephens, Medowie is popular thanks to its close proximity to the Newcastle Airport (and therefore Cairns, Gold Coast and Melbourne). 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 RAAF air base – has seen property prices increase to $862,500. Those looking for a comfortable family home will count their blessings as is still below the average compared to other towns in the region.
Population: 10,879
Average House Price: $862,500 (Jan 2025)
Average Rental Value: $650 p/w (Jan 2025)
Karuah
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. 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 $650,000 milestone.
Population: 1,411
Average House Price: $650,000 (Jan 2025)
Average Rental Value: $520 p/w (Jan 2025)
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 just over 4000 has some great beaches and stunning seascapes to entice residents to invest in a property in this thriving tourist town. While the median house price ate $960k, it’s the most expensive suburb on the list, but with properties still under the million mark it still fits in with the most affordable suburbs in the area.
Population: 4,221
Average House Price: $960,000 (Jan 2025)
Average Rental Value: $650 p/w (Jan 2025)
Lemon Tree Passage
Although still shy of 3000 residents, Lemon Tree Passage has grown hugely since the 1930s when only 30 people lived there. Today, it’s just a short drive to supermarkets, RSLs and all the shops you need on a daily basis. It’s also home to a large population of koalas, which you can often spot when you go for a walk along the water. A family home in Lemon Tree Passage isn’t much more expensive than a unit in Nelson Bay, making it a much more affordable suburb to buy.
Population: 2,686
Average House Price: $720,000 (Jan 2025)
Average Rental Value: $560 p/w (Jan 2025)
Conclusion
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, Lemon Tree Passage 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?
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.
More Information:
Newcastle House Prices & Property Trends 2025
