Kempsey houses are becoming a hot item because of rental yields.

They are fetching 8.52 per cent on average, according to 'your investment Property' magazine and realestate.com

LJ Hooker Kempsey licensee Carlos Peters said the current housing market in Kempsey was good, with better turnover than over the past two years.

“While there is a bit of risk involved because of the area, the yields are quite good,” Mr Peters said.

“So it’s the old story, the higher the risk the higher the return.  

"You have people buying those homes on a 10 to 12 per cent yield, with many people buying site unseen.

“Sixty per cent of inquiries are from out of town investors, with many from Sydney.”

The median house price in Kempsey is $152,000 with weekly median rents at $250 per week. Homes in Kempsey are not fetching the best yields in the state, but are up there in the top 10 per cent.

“Rents are always good and strong in Kempsey,” Mr Peters said.  

“They have always been consistent with our vacancy rate at about 1.8 to 2 per cent.”

Kempsey Stock and Land principal Ian Argue said Kempsey Stock and Land, at this time, had no rental vacancies on its books.

“Rentals are in strong demand for all types of houses and units,” Mr Argue said.

“Kempsey has always been a good safe town to invest and it’s not dear real estate."

Mr Argue said reports indicated that Port Macquarie was currently experiencing a “mini boom”.

“Kempsey is on the outside of that and we mainly see a flow on effect," he said.

"I would be thinking there will be more activity and it will get a little dearer to buy in the future.”

Mr Peters said Kempsey is a buyers market now.

However, he expects to see an increase in house prices over the next six months.

“We are seeing two to three buyers for one property now and if turnover keeps going the way it is, stock will slowly dry up,” he said.