West Kempsey NSW Property Investment

Port Macquarie-Hastings · 2440 · Score: 45/100 · Caution

Median House Price
$455K
Rental Yield
5.6%
Vacancy Rate
3.0%
Median Weekly Rent
$490/wk
Median Unit Price
$372K
Population
5,073
Days on Market
32 days
Annual Growth
2.3%

West Kempsey Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$455.81/night
Occupancy Rate
40%
Est. Annual Revenue
$67K
AI Investment Analysis

West Kempsey NSW Investment Brief

HOLD$454,806 median with 9.4%/yr growth over 5 years.

THE MARKET

West Kempsey has compounded at 9.4%/yr over 5 years — a house that cost $290,228 in 2021 is worth $454,806 today. Properties are sitting on market for 32 days (roughly balanced conditions). At the same growth rate, today's median reaches $712,710 by 2031.

  • Median house: $454,806 | Units: $372,471
  • Gross yield: 5.6% | Net yield: 4.1%
  • 5yr price CAGR: 9.4%/yr | 3yr forecast: 13.5%/yr
  • Population: 5,073 | Owner-occupier rate: 71% | Affluence: Low
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 3.0% (stable) | Rental demand: Moderate
  • Median weekly rent: $490/wk | Days on market: 32 (stable)
  • Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

  • Median nightly rate: $456/night | Occupancy: 40%
  • Estimated annual STR gross: ~$66,548/yr
  • vs long-term rent: $25,480/yr (+161% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Standard suburban transport access

BULL CASE

If West Kempsey maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $523,027 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in West Kempsey pull back 10-15% from $454,806, 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

  • Werris Creek (NSW): $342,492 median, 5.8% yield, 4.7% 1yr growth
  • Gladstone (NSW): $555,200 median, 4.5% yield, -18.7% 1yr growth
  • Willawarrin (NSW): $580,000 median, 4.3% yield, -13.7% 1yr growth

THE PLAY

West Kempsey offers balanced fundamentals but does not present an urgent buying signal. The market is in a boom 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 6.1%.

  • Entry range: $409,325$500,287
  • Minimum gross yield to target: 5.9%
  • Watch signal: vacancy dropping below 2% and days on market holding under 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

Pre-gentrification3.5/10
Low socioeconomic base — classic gentrification precondition
Active development pipeline (3462 approvals) — supply attracting new residents

Growth Forecast

medium confidence
1yr Forecast
1.0%
p.a.
2yr Forecast
0.9%
p.a.
5yr Forecast
0.8%
p.a.

Basis: 5yr CAGR 1.1%

Headwinds
  • High supply pipeline (3462 new approvals) — may cap price growth

Suburb Metric Thresholds

3 green4 yellow9 red
Rental Vacancy Rate
3 high impact
Days on Market
32 high impact
Weekly Rent (house)
490 medium impact
5yr Price CAGR
1.13 high impact
10yr Price CAGR
-0.64 high impact
1yr Price Growth
2.3 medium impact
Population Growth
1.21 high impact
Median Household Income
1126 medium impact
Unemployment Rate
7.4 medium impact
Public Transport Score
3.5 medium impact
School Zone Quality
3.9 medium impact
Distance to CBD
347.61 medium impact
SEIFA Advantage/Disadvantage
1 medium impact
Owner Occupier Rate
71.2 medium impact
Gross Rental Yield (%)
5.6 high impact
Net Rental Yield (%)
4.1 high impact

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

509

2020

675

2021

683

2022

996

2023

599

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2440

Most disadvantagedLeast disadvantaged

Decile 1 of 10 — High disadvantage

Population

23,166

Education (IEO)

1/10

Econ. Resources (IER)

2/10

10-Year Investment Projection

Modelled on West Kempsey NSW data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $490/wk median rent for West Kempsey. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Kempsey WPS
PrimaryGovernment
3/10
Kempsey HS
SecondaryGovernment
3.1/10

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.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.