Newport Short-Term Rental (Airbnb) Market
Newport VIC Investment Analysis
HOLD
— 2.9% gross yield on a $1,300,000 median.
THE MARKET
Median house price in Newport sits at $1,300,000 with 51 days on market and a 2.5% vacancy rate. This is a balanced market right now.
- **Median house:** $1,300,000 | **Units:** $533,960 - **Gross yield:** 2.9% | **Net yield:** 1.4% - **5yr price CAGR:** -0.3%/yr | **3yr forecast:** -0.4%/yr - **Population:** 27,207 | **Owner-occupier rate:** 37% | **Affluence:** Very High
- **Supply pipeline:** Moderate — Development activity consistent with long-term averages
RENTAL SNAPSHOT
- **Vacancy:** 2.5% (worsening) | **Rental demand:** Moderate - **Median weekly rent:** $715/wk | **Days on market:** 51 (worsening) - Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- **Median nightly rate:** $175/night | **Occupancy:** 66% - **Estimated annual STR gross:** ~$42,158/yr - **vs long-term rent:** $37,180/yr (+13% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Newport maintains 3%+ annual growth and vacancy stays below 1.8%, median prices could reach $1,495,000 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Newport pull back 10-15% from $1,300,000, with vacancy rising to 4.5% and rental yields softening as tenants gain leverage.
KEY RISKS
- Negative price growth suggests a softening market
COMPARABLE MARKETS
- **Ferny Creek** (VIC): $1,037,300 median, 0.0% yield, 0.0% 1yr growth - **Flemington** (VIC): $1,014,500 median, 0.0% yield, 0.0% 1yr growth - **Forest Hill** (VIC): $1,325,000 median, 0.0% yield, 0.0% 1yr growth
THE PLAY
Newport offers balanced fundamentals but does not present an urgent buying signal. The market is in a correction 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: $1,170,000 – $1,430,000 - 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.
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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.