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The next Byron Bay: the Aussie coastal hotspots that are primed to boom
Finding a beachside suburb where prices are set to surge is a property investor’s dream, and the latest data shows buyers won’t need to look far to find the next contender.
Data from PropTrack has revealed the coastal suburbs buyers are most keen on, highlighting the hotspots around Australia that have the potential to be the next Byron Bay.
Home values in the sought-after northern NSW town surged over the past decade, especially during the pandemic, putting it at the top of the list of the Australian suburbs with the strongest 10-year price growth.
To attract wealthy buyers of the calibre that splurge on multi-million dollar Byron Bay mansions, homes need stunning ocean views or beach access, agents say. This newly-built home Byron Bay home recently sold for more than $30 million, breaking the suburb price record.
Prices in Byron Bay quadrupled in that period, with the once-sleepy surf town swamped by cashed-up city slickers and even Hollywood celebrities buying holiday homes, causing values to skyrocket.
The warm climate and natural beauty of Byron Bay were two major factors attracting buyers real estate agent and Sotheby’s Byron Bay director Will Phillips said, but he said there was more to picking a winner than just sunny days and golden beaches.
“There are other places that have those things, but I think what makes Byron special is it has that sort of laid back lifestyle, but you're within 45 minutes’ drive of a major city,” Mr Phillips said. “The restaurants, the produce and the nightlife are important as well.”
While values in Byron have surged to levels that are out of reach for most–the suburb has a median house price of more than $3 million –the data shows there are plenty of in-demand coastal suburbs that are much more affordable.
Jump ahead to see the most in-demand beachside suburbs in:
• Victoria
• Tasmania
HOW TO SPOT THE NEXT BYRON BAY
REA Group senior economist Paul Ryan said changing demographics and the arrival of wealthier buyers were key drivers of price growth in coastal hotspots such as Byron Bay.
“It’s gentrification that starts that process,” Mr Ryan said. “The demographics start to change and that becomes this snowball effect.
“Once there's a few interesting restaurants, or people from wealthy parts of the country who know people who live there, word of mouth spreads.
“This could have happened to other parts of the coast, and it could still happen to other parts of the coast.”
A growing foodie scene is a sure sign that a town is gentrifying and may be a precursor for price growth.
Real estate agent and First National Byron director Su Reynolds said an evolving food and beverage scene is a key sign of a suburb on the up.
“One of the things you start to see changing is the availability of quality food,” Ms Reynolds said.
“Once you start to see the evolution of the commercial creator and an eclectic mix of cafes and restaurants, that is one of the indicators. It shows increasing demand and increasing numbers of customers.”
Byron Bay McGrath director Nick Dunn said the supply side of the equation was just as important in predicting future price growth.
“The biggest driver of growth in our area is that classic statement of demand over supply,” he said.
“Our council is so strict with further development that there's only so much available. That’s why the prices continue to grow.”
What $30 million buys in Byron Bay – ocean views from every room at Watermark, the priciest property to sell in the suburb last year.
Wealthy buyers are willing to pay more for homes that take advantage of the natural beauty of their surroundings, Mr Philips said, meaning the topography of the area and the way homes are built and oriented was crucial for supporting a high-end market–think beachfront blocks or hillside homes that capture coastal vistas.
“When you’re spending that kind of money, to have a beautiful view, privacy and peace and quiet are really important, and something buyers in the high end will expect,” he said.
THE MOST IN-DEMAND COASTAL TOWNS AND SUBURBS
For buyers looking to take advantage of surging price growth in the next coastal hotspot, demand data is a good place to start.
Tracking the number of enquiries per property listing can provide a gauge for demand in an area, revealing the suburbs where homes are most highly sought, Mr Ryan said. “It tends to indicate that there's a lot of buyer interest on the number of homes that are available for sale, which generally is the case for up and coming suburbs that have caught the eye of lots of people,” he said.
Bucasia north of Mackay is regional Australia's most in-demand beachside suburb, and with a median value of $510,000, one of the most affordable too.
We’ve crunched the numbers to compile a list of the most in-demand coastal suburbs outside the capitals across the states.
While some are already well known, others are still flying under the radar, potentially allowing buyers to get into the market before prices really take off.
