Port Macquarie: Why the former retirement destination is experiencing a rebirth

Once a sleepy retirement and holiday destination best known for its beaches and waterways, Port Macquarie is now going through a rebirth as a wave of younger people move into the north coast town.

New and recently upgraded infrastructure – especially the new Charles Sturt University campus, which opened in April last year, the upgraded airport, which now has direct services to Melbourne, and the completion of the dual carriageway linking the town of about 46,000 people to Newcastle and Sydney – have given Port Macquarie a new lease of life.

According to Todd Bates, of McGrath Port Macquarie, 48 per cent of the people buying into the town hail from Sydney and Canberra with the 2016 median house price of $525,000 and median unit price of $350,000 being a big attraction along with a capital growth rate of 9.71 per cent for houses and 7.69 per cent for units. 

He says there aren’t many first-home buyers buying into the town, adding that the surge in demand for student accommodation (the new university campus has about 500 students and anticipates 5000 by 2030) has resulted in investors replacing retirees as the No.1 buying group.

Tony Dekker, of LJ Hooker Port Macquarie, says many of these buyers are one and the same, with mainly Sydney people buying now with an eye to moving in in 10 to 15 years.

Recent developments mean  the town is now having difficulty keeping up with the demand for housing. For example, Dekker says there was a significant rental shortage at the beginning of the year as the stock of suitable properties for this purpose had been depleted at the start of the academic year.

The Port Macquarie-Hastings Council has responded to the increased demand by approving residential land releases in Sovereign Hills (prices start at $217,000), Ascot Park (from $230,000) and Crestwood Heights (from $255,000).

Bates says demand for these very affordable blocks is so great local builders can’t build fast enough.

“It’s really driving the local economy and giving the town a new vibe with many good restaurants and trendy cafes springing up,” he says.

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