NSW coastal towns see house prices double :
While house prices don’t always double every decade, some regional areas in NSW have seen property values more than double recently.
In the Byron Shire, house prices increased 2.6 times, while prices in the Kiama local government area rose 2.4 times.
These figures are based on data from Domain, covering the 10 years leading up to June.
Domain’s chief of research and economics, Dr. Nicola Powell, stated that Byron and Kiama are Australia’s two most expensive regional areas.
Their median property values are now $1.48 million in Byron and $1.45 million in Kiama.
“These prices surpass those in most other capital cities, except Sydney. They represent premium regional markets,” she explained.
Powell also mentioned that it would be challenging for first-home buyers with average local wages to afford homes in these regions.
“In markets like these, many out-of-towners are moving in, especially during the pandemic,” she noted.
These newcomers often come from higher-priced markets like Sydney and have more financial resources available.
Receive the latest property news and advice directly in your inbox
As a result, locals have been priced out and are moving to nearby areas.
“Neighbouring places like Ballina are often viewed as the cheaper alternative to Byron,” she explained.
In the past decade, house prices in Ballina increased by 114%, reaching a median of $982,500.
PRD’s chief economist, Dr. Diaswati Mardiasmo, noted that several factors have contributed to house prices more than doubling in some regional markets.
Mardiasmo noted that Kiama’s closeness to Sydney and Byron Bay’s proximity to the Gold Coast is not a coincidence.
“They are easily accessible locations, well-serviced by transportation,” she explained.
Byron Bay has gained international and national attention due to celebrities living and vacationing there, along with the Netflix series, Byron Baes.
Additionally, many Hollywood films produced on the Gold Coast attract stars and crew who visit Byron for holidays.
Mardiasmo emphasized that recognition plays a crucial role in increasing an area’s value.
“Before COVID, not many people knew about places like Tamworth, Newcastle, or Wagga Wagga,” she said.
She also mentioned that the NSW state government has invested significantly in upgrading infrastructure in regional areas.
“Geographically, you may be in a regional area, but it often doesn’t feel that way,” she added.
Andy Wharton from First National Coast & Country noted that Kiama’s location, just two hours from Sydney, makes it an easy choice.
“There have been improvements in transport links, making access to Sydney much easier over the past decade,” he stated.
Wharton highlighted the area’s natural beauty and community appeal.
“It features a stunning coastline, basalt formations, and multiple surf beaches in the 2533 postcode,” he said.
“It’s extremely beautiful, and the climate is quite pleasant. Summer temperatures can reach 28 to 30 degrees, while winter lows may be 6 degrees.”
“There was a strong demand to move to an area with little industry, providing a safe place to raise families.”
Will Phillips from Sotheby’s International Realty remarked that Byron Bay offers an ideal blend of lifestyle factors for elite buyers.
“Beautiful beaches combined with one of the world’s best climates and top-quality food make this area highly desirable,” he noted.
Phillips also highlighted the relaxed vibe that attracts people to the region.
“Locals might refer to it as ‘energy,’ but newcomers often describe it as a slower pace of life,” he explained.
“They feel better here; it’s a relaxed atmosphere, and people are genuinely friendly without the rush.”
Phillips mentioned that property prices have decreased since the pandemic demand diminished.
“Now we’re seeing that, due to the value shift, people feel it’s a great value again,” he said.
He believes the demand for Byron Bay was always destined to increase, with the pandemic simply accelerating that trend.
“It fast-tracked the growing interest in the area,” he concluded.
