But local agents say it’s business as usual, with bargain hunters from Brisbane and the Gold Coast among those eyeing prime properties in the suburb and surrounds.
Byron Bay’s housing market saw a COVID pandemic boom , recording the highest median house price growth of any suburb in the country in 2020 as prices soared by 37 per cent in just 12 months.
However, the latest quarterly Domain House Price Report has revealed that Byron Bay’s median house price has fallen by 19.1 per cent to $2.075 million in five years, representing a staggering drop of about $489,895. The drop was 4.7 per cent ($102,335) year on year.
The median house price in the Richmond Valley-Coastal statistical area, which includes Byron Bay and localities like Suffolk Park, Ballina, Lennox Head, Mullumbimby, Alstonville and Woodburn, also decreased by 2.1 per cent to $1.3 million.
Compared to a year ago, though, Byron Bay Sotheby’s director Will Phillips says interest in the area has increased as buyers see it as offering good value.
“Our read on it, temperature check, is that the demand and the appeal of the area is stronger than what it was last year,” he says.
“The inquiries [have] definitely gone up; I think buyers are more excited about the affordability and, consequently, the sales we did in September and this month in October [are] double what we did last year.”
Phillips says while the buyer pool from Sydney and Melbourne remains steady, more and more people from north of the nearby border with Queensland are looking at what Byron Bay has to offer.
“We’ve noticed a larger influx from Gold Coast and Brisbane, the sentiment there being it’s gotten too busy, and …. because the prices there have gone up so much, I think we’ve started to look like really good value,” he says.
The Byron area has long attracted celebrity buyers, with a series of luxury property sales during the COVID-era price surge tied to high-profile buyers such as singer-songwriter Toni Watson , better known by her stage name Tones and I, and Rip Curl co-founder Brian Singer .
First National Byron Bay’s Sharon McInnes has been a local for over four decades and worked in the real estate industry for more than 20 years. She says she doesn’t expect to see another COVID-level boom in her lifetime.
“That was their only way out of the cities, so they were buying sight-unseen and paying a premium … just to be able to escape,” she says, adding that some of those high-end properties “were sold at a discount because they paid so way over the top, and they just didn’t want to be here anymore”.
Byron Bay’s housing stock is also significantly limited compared to cities, and McInnes says the market tends to level out regardless of global events.
“[Buyers] all seem to want to come to the far North Coast because it’s beautiful, it’s safe, our beaches are pristine – they always want to keep coming here,” she says.
27 Marine Parade, Byron Bay NSW 2481
Local agent Tezu Harrison of McGrath Byron Bay says there appears to be fewer home owners wanting to sell in current conditions, with some vendors facing a significant price haircut.
“The only difference is just the prices at the moment,” he says. “We’re still fortunate to be in such a good place to live in, so there are still people looking to purchase. I’m actually still struggling to find some of my clients good properties to buy.”
Ray White Byron Bay director of sales Damien Smith says turnkey properties appear to be most popular in the current market, while homes requiring work or repair are harder to move.
“The high end of the market still seems to be marching along quite well … let’s say, over [the] $6 million mark,” he says, adding that there are also buyers looking for entry-level properties. “You’re looking at people coming for a little duplex or a townhouse or whatever it might be from that $1 million to $1.5 million [mark].”
“I’m going to say the slowest segment of the market is anywhere from that $1.5 million to $3 million mark, where it’s a second house for someone and they’re going to borrow significantly. I think that’s the segment that’s been hurt the most, and I think that’s where we’ve seen the most reductions.”
Looking ahead, Smith says he doesn’t think Byron Bay house prices will necessarily fall further and believes the “blue ribbon” area will eventually rebound.
“I believe it’ll bounce back pretty well once people are free-flowing again, whenever that might happen, then, this area will be the beneficiary of that,” he says.
Matt Hampson Matt is a Residential News Reporter based at Domain's Sydney office. He writes about the housing market and property issues impacting renters, mortgage holders and Australians hunting for their next, or first,
The catch for Aussie buyers as house prices tumble nationwide
Rip Curl's Brian Singer stakes a $22 million claim on the surfbreak at Byron Bay's Wategos Beach, just a year after he sold Rip Curl in a deal with $350 million.
One of the most frustrating parts of buying a NSW home could soon disappear
Sweeping new property laws will force greater price transparency on NSW listings, and even real estate agents say the changes could make life easier.
Byron Bay house prices down $412,500 since 2021 peak as property market stabilises
Byron Bay’s median house price shot up by 37 per cent in 2020. Since then, the high-profile market has come off the boil – but it is normalising, not failing, experts stress.
See more news from Domain in your Google search results.
The information on this website is intended to be of a general nature only and doesn't consider your objectives, financial situation or needs.
