Byron Bay replaces Sydney as the most expensive main market for buying Australian property

The once-sleepy Byron Bay has almost doubled its prices in just one year, and has leaped over Sydney to become the country’s most expensive major housing market.

According to data from realestate.com.au, the median house price of this surfing town turned into a celebrity Xanadu last year was approximately US$1.42 million, but has since soared to US$2.7 million.

Such amazing growth has made Byron Bay easily the fastest growing regional market in New South Wales and the country.

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Price growth is almost twice that of the second fastest-growing regional market: Finlay, near the border with Victoria.

House prices in Byron are also higher than most parts of Sydney, with a median of $1.2 million in Sydney-although parts of the city, such as the eastern suburbs and lower north shore, are still more expensive.

Cameron Kusher, head of economic research at Realestate.com.au, said that Byron Bay has developed in recent years.

“It’s definitely not what it used to be,” he said. “It’s always a small town with a slow pace… Now you basically have to be a fairly senior business person to be able to afford it.”

One of the price drivers in recent years has been the influx of cash home buyers.

These include Hollywood celebrities such as Chris and Liam Hemsworth, Zac Efron and Matt Damon, who snapped up millions of dollars in homes in the area.

The Hemsworth brothers Chris and Liam helped Byron on the international map.Picture: Facebook

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Local agents revealed that Byron became particularly popular after the outbreak of the new crown virus last year, and many wealthy and celebrities chose to avoid during the pandemic.

Mr. Kuschel said that in many other “lifestyle” markets such as Coffs Harbour, there is a similar trend of wealthy buyers pushing up prices.

“Wealthy people will be attracted by the very good coastal market,” he said. “For some people (the high price) will be an attraction.”

Other increasingly popular NSW housing markets (measured by the annual change in the number of buyers and listings) include the new suburbs of Renwick near Mittagong in the Southern Highlands and Pokol in the Hunter Wine Region Bin.

The median house price in Sydney is close to US$1.2 million.

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Buyer demand from Kembla Grange, a suburb of Wollongong and South Coast enclaves Mollymook Beach, Narrawallee, Batehaven and Broulee also surged.

Shoalhaven, south of Wollongong, had the largest unit price increase in New South Wales in the past year, at 33.2%. A unit in the suburbs is now less than $800,000.

McGrath-Wollongong Sales Director Joshua Kersten said that due to the increase in work arranged at home during Covid-19, more and more Sydneysiders are looking south of the dense smoke.

Regional price increase (Last 12 months)

houses

Byron Bay 90.9%

Finley 49%

Mululundi 45.7%

Casuarina 43.8%

Mayana 40.6%

unit

Shellharbour 33.2%

32.7%

Pottsville 31.6%

Suffolk Park 28.4%

Kingscliff 28.4%

Source: realestate.com.au