Byron Bay is now more expensive to own a home than Sydney, as a mass exodus from capital cities causes regional home values to soar.
CoreLogic reports the cost of the average home in the Byron Bay region, which has become a celebrity hotspot in recent years, is now $1.4m — significantly higher than the $1.147m a buyer needs to buy in Sydney.
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Unprecedented demand from those lured by a promised “attractive” coastal lifestyle in Byron Bay has seen the Richmond-Tweed region record the strongest price growth of any regional town in the country for both houses and units. CoreLogic’s Regional Market Update reports house values have risen there by 21.9 per cent and units 15.5 per cent in the year to April.
This home at Wategos beach has reportedly sold for a record-breaking $22 million.
CoreLogic research director Tim Lawless said it was no surprise the Richmond-Tweed area was the strongest performing market as buyers searched for more lifestyle destinations.
“This region includes high profile beachside destinations such as Byron Bay, Suffolk Park and Lennox Heads as well as popular hinterland villages such a Bangalow,” he said.
The report revealed the regional housing market outpaced value growth across Australia’s capital cities in the last 12 months, rising 13 per cent compared with a 6.4 per cent gain in capital city values.
Mr Lawless said the regional property market had benefited from a number of factors including more people having the ability to work remotely.
This block of land at 30 Kendall St, Byron Bay, has a $4.2m guide.
“No doubt the more affordable housing options across many of Australia’s regional markets is another incentive,” he said.
“In April there was a $247,400 difference between the median value of capital city dwellings and regional dwellings.”
Mr Lawless said the regional market was well placed to record higher than average levels of demand in the year ahead.
“Those markets that are located close enough to capital cities to provide a commuting option, and those lifestyle markets that are popular with sea and tree changers.”
Realestate.com.au reports the Byron Bay town centre has seen even stronger price growth than the wider area with the median house price now $2.65m — up from $1.45m a year ago.
Pacifico Property director Christian Sergiacomi said the heated competition for homes in the Byron region remained strong, but was not as intense as last year.
Byron Bay has been popular with many homeowners this past year. Picture: Supplied.
“We saw plenty of panic buying last year from buyers who were prepared to pay anything to get into the market,” he said.
“Many had thrown their lengthy wish lists out the door to be ready to transact.”
Mr Sergiacomi said the likes of Chris Hemsworth who call the area home had helped to market the area as an attractive destination to live.
“Byron Bay markets itself, but having someone like Chris living in the area has created a spike in more people researching and discovering all the good things that Byron Bay has to offer,” he said.
Bunbury in Western Australia was the worst performer across both house and unit markets, with 3 per cent and -4.4 per cent yearly growth respectively. The town had also seen the highest change in sales volume — up 51.4 per cent from the previous 12 months.