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Kempsey

NSW 2440LGA: Kempsey Shire

Investment Score

72

/100

AI Intelligence Summary

Kempsey is a regional town on NSW's Mid North Coast, serving as the administrative center of Kempsey Shire Council approximately 430km north of Sydney. The town offers an affordable coastal lifestyle with access to pristine beaches including South West Rocks and Hat Head National Park, alongside the recreational opportunities of the Macleay River. With a significant Aboriginal population and the Dunghutti people as traditional custodians, Kempsey maintains strong cultural heritage. The property market remains highly affordable compared to major NSW cities, experiencing moderate growth following regional trends post-COVID. The community benefits from essential services including hospitals, schools, and shopping centers, with a strong events calendar featuring agricultural shows and cultural festivals. While transport connectivity relies primarily on the Pacific Highway and limited public transport options, the town's proximity to beaches and rivers positively influences lifestyle appeal and property values. The area experiences population fluctuations due to seasonal work and tourism, with a median age typically higher than the NSW average due to retiree migration to coastal areas.

Strengths

  • Highly affordable property market compared to major NSW cities
  • Excellent access to beaches and coastal recreation including South West Rocks
  • Strong cultural heritage with significant Aboriginal community
  • Essential services including hospital, schools, and shopping facilities

Opportunities

  • Growing retiree migration to coastal regional areas
  • Potential for eco-tourism development near national parks
  • Infrastructure improvements and highway upgrades
  • Increasing demand for affordable coastal lifestyle properties

Considerations

  • Limited public transport options and commercial flight services
  • Population fluctuations due to seasonal work affecting market stability
  • Distance from major employment centers and Sydney CBD
  • Variable NBN and mobile coverage in rural areas

Property Market

Median House

$385K

+8.5% 1yr

Median Unit

$285K

+7.8% 1yr

Median Townhouse

$335K

Rent (House)

$350/wk

Rent (Unit)

$295/wk

Days on Market

45

Vacancy Rate

1.8%

Auction Clearance

65.0%

Price Growth

Type1 Year3 Year5 Year
House+8.5%+18.2%+28.7%
Unit+7.8%+16.5%+25.3%

Rental Yields

House Yield

4.8%

Unit Yield

5.4%

Townhouse Yield

5.1%

Investment Scorecard

Overall Investment Score72/100
Growth Potential68/100
Cashflow Score78/100
Risk Score (lower = safer)65/100
Affordability Index85/100

Demand/Supply Ratio: 1.40

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Kempsey at median house price

Standard transfer
$11,855
First Home Buyer
Exempt

Save $11,855

Foreign buyer surcharge
$30,800

+8% surcharge

Annual rent income
$18,200

$350/wk

Interest (80% LVR @ 6.5%)
-$20,020
Other expenses (~2.5%)
-$9,625
Net rental position
-$11,445

Negatively geared

Tax benefit (39% MTR)
+$4,464

Reduces taxable income

After-tax holding cost
$6,981/yr

~$134/week

Based on 5.7% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$508,929
Capital gain
$110,149
After discount
$55,075
CGT payable
$21,479

10-Year Hold

Est. value
$672,750
Capital gain
$273,970
After discount
$136,985
CGT payable
$53,424

Investor Quick Summary

Entry cost (stamp duty)

$11,855

After-tax yield

2.93%

Weekly holding cost

$134/wk

10yr CGT (est.)

$53,424

Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.

Demographics

Population

12,500

Median Age

44

Median Income

$48K

per annum

Family Households

58.0%

Professionals

28.0%

University Educated

18.0%

Unemployment

7.2%

Born Overseas

12.0%

Dwelling Mix

Houses: 72%Units: 18%Townhouses: 10%Total: 5,800

Lifestyle & Community

Walkability45/100
Public Transport3/10
Schools Rating6/10
Safety7/10
Family Friendly8/10
Cafes & Restaurants

25

Parks

8

Hospitals

1

Distance to CBD

430.0 km

Nearest Station: No passenger rail service

Coastal regional lifestyle with river recreation, beach access, and community events in a peaceful rural setting with essential services and amenities.

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Data sourced from multiple sources. Last updated 25 March 2026.

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