9 January 2024

Growing up, Jessica Prescott and her brother James Mclarty spent every summer holiday at their beach house in Nelson Bay.

“We’d go on bike rides, go on dolphin charters, climb Mount Tomaree, go tobogganing. There’s a lot of stuff to do for families. We used to holiday [there] every summer,” Prescott said.

It was the quintessential holiday home for the siblings who have fond memories of long summer days there.

“Once you’re sitting up there, you’re sitting up with the trees, and it’s like nothing else is around. It’s gorgeous, it’s simple,” said Mclarty.

However, the siblings have made the bittersweet decision to sell the property which is near Bagnalls Beach and a short drive to the marina that changed the sleepy beach town some 20 years ago, Mclarty said.

“It’s got such great potential and is great for families,” Prescott said of the home. “We want to let someone else enjoy it … and the beautiful surroundings.”

Nelson Bay is one of dozens of NSW beach towns where buyers seeking a holiday home or a sea change can still find options on a six-figure budget – not on the waterfront, but close enough to the sand.
Its house median sits at $925,000, after declining 9.8 per cent over the year to September, on Domain data. Sydney’s median by comparison increased 8.1 per cent to about $1,578,000.

Wollongong and neighbouring Fair Meadow also slipped below the million dollar mark, recording medians of $915,000 and $990,000. They are among many coastal areas that posted price declines in 2023 as an additional five interest rate rises took their toll on the property market.

Those on a lower budget could look to the likes of Anna Bay ($855,000), Old Bar ($730,000), Coffs Harbour ($715,000) and Tuross Head ($783,750), though values in all areas were still up more than 50 per cent over the five years to September, despite recent declines.

Nelson Bay has also had a meteoric rise, its median increasing 44.5 per cent since 2018.

PRD Port Stephens’ selling agent Dane Queenan, who has listed James and Jessica’s family holiday home, said Sydneysiders still made up the bulk of buyers in the area and noted the majority of interest was coming from the Hills District and northern beaches.

“Since COVID a lot of people have realised life’s short. People can get up to Port Stephens in a short amount of time. It’s such a beautiful coastal town, they can relax and be on holidays straight away.”

“We feel this property will [go to] someone who will look at it as a family holiday home or look to redevelop the site,” Queenan said. “The majority of people have been holidaymakers.”

The property has been advertised without a price guide, but Queenan said comparable homes had ranged from $900,000 to $990,000.

For buyers with a smaller budget, there are just a handful of coastal suburbs with house medians at or below $700,000.

Tanilba Bay just scraped in after prices rose 2.2 per cent to $700,000. But more affordable prospects could be found in Toormina, where the median fell 3 per cent to $687,500, and in Tuncurry and Sanctuary Point, which both had a median of $675,000 after price falls.

Tanilba Bay just scraped in after prices rose 2.2 per cent to $700,000. But more affordable prospects could be found in Toormina, where the median fell 3 per cent to $687,500, and in Tuncurry and Sanctuary Point, which both had a median of $675,000 after price falls.

But Nambucca Heads was the most affordable NSW beach town with a median of $637,000, despite prices increasing 11.8 per cent over the year – a sign of its growing popularity.

Selling agent Corey Wong of Roberts Nambucca Real Estate said the town has gone from strength-to-strength since COVID. The median is up 72.6 per cent since 2018.

The town was drawing buyers from across the country, but the bulk were from Sydney, Melbourne and Canberra, Wong said. Some were looking to make a sea change, while others were after a holiday home.

“You’ve got a range of people: you’ve got young investors, older investors, and you’ve got downsizers,” he said. “The main thing is they’re attracted to the local beaches, convenience to Port Macquarie and Coffs Harbour and the glorious weather we throw out there. There’s a fair bit on offer.”

Buyers who can afford to spend seven figures will find more options in the $1 million to $1.5 million price bracket, than they had a year ago.

Almost every suburb in that price range has recorded price declines. The biggest falls were in Lennox Head, down 20.5 per cent to a median of $1.3 million, Mollymook Beach, down to 18.1 per cent to $1.1 million and Kiama, down 15.8 per cent to $1.31 million.