Byron Bay house prices rise 37 per cent in 2020: Domain House Price Report

Byron Bay has taken the crown for the highest house price growth of any suburb in the country last year, with house prices soaring by an astonishing 37 per cent.

In the small coastal town of roughly 10,000 people, the median house price has shot up to $1.68 million, Domain’s latest House Price Report shows.

While agents report demand has remained strong into the new year, the latest figures have prompted speculation the local market could be nearing its peak rate of growth.

“The change in price in Byron is pretty eye-watering,” Domain senior research analyst Nicola Powell said.

Dr Powell said there had been progressive hype around Byron Bay before the onset of the pandemic saw an influx of new buyers and investors.

“The celebrity pull, the lifestyle pull – it was almost the place to be seen,” Dr Powell said.

The rapid growth has prompted a spillover effect in neighbouring towns, with the median house price in the Byron Shire – which stretches from Broken Head to Mullumbimby – rising 26 per cent in 2020.

Within the same council area, the median house price in the town of Bangalow jumped 24 per cent to $1.175 million while Mullumbimby rose 16.6 per cent to $830,000.

The dramatic upswing in Byron Bay prices was mostly driven by wealthy households from Sydney or interstate, either relocating or securing a second home to live in part-time.

A string of celebrities landed in the beachside hamlet. Most recently, Toni Watson, the singer-songwriter behind Tones and I, spent $3.3 million on a quarter-acre property a few streets back from the beach.

The number of property sales in Byron Bay was up by almost a quarter compared to 2019, with the top end of the market proving a hive of activity.

In November, Rip Curl founder Brian Singer paid $22 million for a mansion on Wategos Beach, a record-breaking sale for the town.

“Over 2019, there were a handful of sales over $4 million,” Dr Powell said. “Whereas that handful of sales has doubled over 2020.”

Peter Richards and wife Belinda Lopez have kept a close eye on the local property market, and the self-described opportunists opted to put their six-bedroom property up for sale at the start of this year.

“In the centre of town, you can’t buy half a block for $2.5 million now – it’s insane,” Mr Richards said. “If you can afford to live here, it’s always maintained its value or shot up, but it’s unprecedented in the last year and a half.”

SOLD - $4,800,000

12a Seaview, Byron Bay NSW 2481

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The couple, originally from Melbourne, bought the 1100-square-metre block five years ago, when just a shed and compost toilet occupied the property.

Mr Richards designed the private compound as separate dwellings, to accommodate extended family or generate a second income.

“If someone came along and offered over the $5 million mark, both of us would be happy to sell,” Mr Richards said.

Although demand has outweighed supply, there has been a steady trickle of places coming onto the market as property owners cash in on Byron’s price growth.

“There are people who have been here a long time and have a few houses, so they are choosing the one they want to live in and selling the extra one,” Pacifico Property’s Christian Sergiacomi said.

“Or there are people who are moving on … to places like Lennox Head or Pottsville or Cabarita.”

While Mr Sergiacomi said the market showed no signs of losing momentum, Dr Powell questioned whether the pace of price growth could continue.

“I think that it’s nearing its peak rate of growth – because it’s just extraordinary the price change,” Dr Powell said.