Clarence Town NSW Property Investment
Port Stephens · 2321 · Score: 61/100 · Hold
Clarence Town Short-Term Rental (Airbnb) Market
Clarence Town NSW Investment Brief
HOLD — 3.1% gross yield on a $770,000–$1,044,762 (sources disagree, range shown — do NOT quote a single number) median.
THE MARKET
Median house price in Clarence Town sits at $770,000–$1,044,762 (sources disagree, range shown — do NOT quote a single number) with 42 days on market and a 3.0% vacancy rate. This is a tenant-favourable market right now.
- Median house: $770,000–$1,044,762 (sources disagree, range shown — do NOT quote a single number) | Units: $645,155
- Gross yield: 3.1% | Net yield: 1.6%
- 5yr price CAGR: -5.5%/yr | 3yr forecast: 13.5%/yr
- Population: 2,265 | Owner-occupier rate: 70% | Affluence: Above Average
- Supply pipeline: Moderate — Strong population growth likely attracting new development approvals
RENTAL SNAPSHOT
- Vacancy: 3.0% (stable) | Rental demand: Moderate
- Median weekly rent: $650/wk | Days on market: 42 (stable)
- Tenant market — vacancy elevated, negotiate hard on rent.
SHORT-TERM RENTAL
- Median nightly rate: $720/night | Occupancy: 40%
- Estimated annual STR gross: ~$105,165/yr
- vs long-term rent: $33,800/yr (+211% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record.
- Transport: Wallarobba station 12.5km away
BULL CASE
If Clarence Town maintains 6%+ annual growth and vacancy stays below 2.1%, median prices could reach $1,270,605 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Clarence Town pull back 10-15% from $1,104,874, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.
KEY RISKS
- Distance from CBD may limit long-term capital growth potential
COMPARABLE MARKETS
- Lake Illawarra (NSW): $982,570 median, 3.4% yield, 10.6% 1yr growth
- Kinchela (NSW): $776,000 median, 3.2% yield, -0.5% 1yr growth
- Collombatti (NSW): $800,481 median, 3.1% yield, 11.9% 1yr growth
THE PLAY
Clarence Town offers balanced fundamentals but does not present an urgent buying signal. The market is in a recovery phase with moderate vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.
- Entry range: $994,387 – $1,215,361
- Minimum gross yield to target: 4.5%
- Watch signal: vacancy dropping below 2% and days on market falling below 35
This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.
Gentrification Index
Growth Forecast
high confidenceBasis: 5yr CAGR 6.6% + 10yr CAGR 5.2%
- +Strong population growth (6.3%/yr) driving demand
- −High supply pipeline (2574 new approvals) — may cap price growth
Suburb Metric Thresholds
Macro Environment
Macro Indicators
Cash Rate
4.35%
▲ 0.25%Cash rate as at 2026-05-06 · Credit data 2026-04
Suburb Supply & Demand
Suburb Supply Pipeline — New Dwelling Approvals
269
2020
688
2021
613
2022
652
2023
352
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 2321
Decile 7 of 10 — Average
Population
19,857
Education (IEO)
4/10
Econ. Resources (IER)
9/10
10-Year Investment Projection
Modelled on Clarence Town NSW data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $650/wk median rent for Clarence Town. Capital growth and rent increase are editable assumptions.
Schools
In your catchment
These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.
Nearby Suburbs
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.