Byron Bay: Why this famous coastal hotspot continues to draw in new residents
Byron Bay … beautiful one day, far beyond many people’s pockets the next.
Yet just why has the northern NSW holiday spot been in the grip of such a rapid upward house price spiral since the start of COVID-19?
Could it be because it’s simply a stunning area with gorgeous beaches and lush national parks? Or that it offers such a pleasant escape from the hardships of city lockdowns for out-of-towners and locals alike? Or the fact that land is limited so supply isn’t enough to meet the demand of the flight to the regions?
Or maybe it’s something to do with the high-voltage star power of resident Chris Hemsworth and frequent friends Nicole Kidman, Matt Damon and Zac Efron.
“I think it’s all of those things, plus the nature of the community here itself,” says Helen Huntly-Barratt of First National Byron.
“There’s a real tolerance of everyone, whether you’re a Liberal, a hippy, a greenie, gay or straight. Everyone feels very comfortable in this environment.
“And you talk to people here and they might be worth $500 or $500,000 and you wouldn’t know the difference. It doesn’t matter.”
Whatever the reason for the pulling power, the strength of that allure isn’t in doubt.
In May this year, the unprecedented demand for homes in the northern rivers area pushed the Byron median house price up to smash the landmark $1 million barrier, and then further to eclipse even the price of homes in the state’s traditionally most expensive city, Sydney.
Now Byron’s median house price sits at an astonishing $1.55 million, up a thumping 34.8 per cent over the past year, and having more than doubled over the past five.
That’s nearly $51,000 more than Sydney’s median of $1,499,126, and over $512,000 more than Melbourne’s, on figures from the latest Domain House Price Report.
“There’s been continued price growth from the early 1980s but that was mostly from Sydneysiders and backpackers,” says Liam Annesley of the Byron Bay Real Estate Agency.
“Then Paul Hogan, John Cornell, Delvene Delaney and Olivia Newton-John put it on the map and brought the Packers here, who, in turn, brought their friends.
“By 10 years ago, it had become a brand itself, for beer, boutique clothes, food, everything, and social media has pushed that hard. Besides, where else would be better to park your money at the moment?”
Certainly, Byron has far more than its fair share of luxury homes to appeal to the wealthy looking for both a sound investment with stellar capital growth and a laid-back lifestyle.
Huntly-Barratt, for instance, is selling a five-bedroom, architect-designed, fully off-grid home named Hoopla at 43 Raywards Lane, Skinners Shoot.
It’s a short bicycle ride from the Byron town centre, set on three hectares of landscaped gardens and expected to sell for over $9 million.
“It’s a beautiful house in one of the most desirable places in the world with one of its best climates and no over-development,” she says.
“Byron is also so accessible today, close to airports and with the upgrades to the Pacific Highway from Sydney now almost finished.”
Just a 10-minute drive into the hinterland is another beauty, the eight-bedroom eco-retreat Magnolia Palace on nearly 0.8 hectares at 15 Magnolia Drive, Ewingsdale.
It’s for sale with a price guide of $9.5 million to $10.5 million through Ku Darroch of Byron Bay Property Sales.
“This was built eight years ago as a guest house, and this is its first time on the market,” he says. “It could be a wonderful family home or holiday home in a subtropical pocket that’s becoming even more popular now that people can work from home and have a much freer lifestyle.”
Darroch says the market is so hot, a house that was selling for less than $1.2 million two years ago was given a coat of paint and then sold recently for $3.1 million.
Another in Ewingsdale that went for $4.5 million before COVID-19 was just snapped up for $8.5 million.
“It’s insane!” Darroch says.
Another luxury holiday home, a six-bedroom, three-storey house at 13 Pacific Vista Drive, Byron, at Tallow Beach, is also for sale for offers over $10 million.
“It’s been rented out to national and international celebrities before, and used as a Masterchef pop-up,” says Sarah Smith, a friend of the owners.
All that celebrity focus has kept Byron in the spotlight throughout the pandemic, a period in which it has recorded its strongest price growth ever, believes Su Reynolds of First National Byron Bay.
“We can no longer draw on past sales for an indication of price,” she says
“They don’t seem now to have any relevance at all. One property was listed for $3.5 million – which we thought was healthy – and it sold for just short of $5 million.
“About 50 per cent of the market are buyers already living here and then 27 to 30 per cent Sydney, and Melbourne about eight per cent. We’ve had a lot of people who used to come for a couple of weeks every year now buying to stay longer-term.”
If someone couldn’t afford Byron Bay, they were traditionally pointed to areas nearby, but now prices in many of those have also skyrocketed.
In Mullumbimby, Brunswick Heads and the hinterland, Gary Brazenor of Byron Shire Real Estate has seen values pushed up by city buyers looking for more space.
“We’re getting Melbourne people buying in these areas sight-unseen,” he says.
“Although the vaccination rates are lagging, that’s not putting people off. What they miss out on vax, they’re making up for on lower density.”
At Lennox Head, one out of 10 to 20 buyers used to be from out of the area.
Today, it’s 50:50, with a lot of buyers leveraging their city homes to buy locally.
“We’re a spin-off from Byron Bay which is a bit manic these days,” says Michael King of Elders Real Estate.
“The beauty of [being] here is that you can visit Byron, but you don’t have to live there. But I think when interest rates start to go up, it’ll calm down.”
At Bangalow, 14 kilometres into the hinterland, GNF Bangalow agent Alli Page says there has been a tidal wave of demand since the early days of the pandemic – particularly from Melbourne and Sydney.
She wonders whether such steep price rises can possibly be sustained, but adds that, when it comes to prestige properties, “those buyers don’t care if they pay a bit extra”.
“Lower down, at $2 million to $3 million, buyers are more circumspect. It’s impossible to tell how much property is going to go for at the moment. It’s like looking into a crystal ball …”
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