The most affordable suburbs in Port Stephens

22 December 2025

It’s been nearly a year since Port Stephens was named as the best town in Australia but property investors and downsizing retirees have rightfully been turning their eyes to the area. With some of the best beaches in Australia, many need little else to encourage them to buy. Home to some incredible restaurants, close 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.

Port Stephens profile

Located directly north of Newcastle, Port Stephens on a beautiful stretch of coastline. The region is dissected by the Pacific Highway giving residents direct access to Newcastle and Sydney to the south and places like Coffs Harbour and Byron Bay to the north. Many of the region’s primary towns – like Raymond Terrace and Medowie – straddle the main road. However, the other main cluster of suburbs sit nestled in a small strip of land between Port Stephens and the ocean, 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.

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 COVID, 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. Read on to find out some of the most affordable suburbs in the area.

The most affordable suburbs in Port Stephens revealed

Raymond Terrace

If you’re looking for a cheap family home or an investment property with great potential, Port Stephens’ biggest town Raymond Terrace is a great place to look. Sitting directly on the Pacific Highway, this town of just over 13,000 is the main hub for the council and 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 buy property. As of December 2025, the median house price for Raymond Terrace is $700,000 whilst the median unit price is $510,000. These have risen significantly from the start of the year (when these figures sat at $640,000 and $450,000, respectively)

Population: 13,453

Average house price: $700,000 (Dec 2025, realestate.com.au)

Average unit price: $510,000 (Dec 2025, realestate.com.au)

Average house rental: $570.wk (Dec 2025, realestate.com.au)

Average unit rental: $475/wk (Dec 2025, realestate.com.au)

Medowie

Close to Newcastle Airport (and therefore Cairns, Melbourne and Bali), Medowie is the second largest town in Port Stephens. These close links to the airport have seen the town grow to become one of the key towns in the area with a population just over 10,000. Its thriving community – one based around the RAAF air base – has seen house prices increase from $862,500 to $927,500 over 2025. Although it’s creeping up to a million dollars, it’s still cheaper than many suburbs in Newcastle.

Population: 10,879

Average house price: $927,500 (Dec 2025, realestate.com.au)

Average house rental: $690 (Dec 2025, realestate.com.au)

Average unit rental: $510/wk (Dec 2025, realestate.com.au)

Karuah

Located on the Karuah River, the namesake town is situated on the northern edge of Port Stephens straddles the border with the Mid-North Coast. This small town of less than 1500 offers plenty to enjoy. The town is known for its thriving oyster industry with many signs of its value to the town still visible today. Karuah remains one of the most affordable places to buy in Port Stephens. As of December 2025, the median house costs $690k (up from $640k at the start of the year). So while growth is happening, it’s at a more manageable rate if you’re still waiting to save a deposit.

Population: 1,411

Average house price: $690,000 (Dec 2025, realestate.com.au)

Average house rental: $540/wk (Dec 2025, realestate.com.au)

Anna Bay

A few years ago, Anna Bay was seen as one of the best destinations in Australia to grab cheap oceanside property. Fast forward to today 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. With median house price at $1.1m, it’s the most expensive suburb on the list, but the growth in this suburb still makes it worthwhile as an investment option.

Population: 4,221

Average house price: $1,100,000 (Dec 2025, realestate.com.au)

Average unit price: $627,152 (Dec 2025, realestate.com.au)

Average house rental: $700/wk (Dec 2025, realestate.com.au)

Average unit rental: $560/wk (Dec 2025, realestate.com.au)

Lemon Tree Passage

Although still shy of 3000 residents, Lemon Tree Passage has grown hugely since the 1930s when only 30 people lived there. If you buy a property here you’ll find 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: $740,000 (Dec 2025, realestate.com.au)

Average house rental: $600/wk (Dec 2025, realestate.com.au)

Average unit rental: $500/wk (Dec 2025, realestate.com.au)

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.