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. Picture: realestate.com.au/sold
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.
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. Picture: realestate.com.au/sold
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. Picture: realestate.com.au/sold
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.
Based on the number of enquiries per listing, 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. Picture: realestate.com.au/sold
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.
Most are within a few hours’ drive of a capital city, and while some are small or medium sized towns, others are suburbs within coastal urban areas, such as the Gold Coast or the Illawarra.
Many are surprisingly affordable – more than half have median house values of less than $1 million.
Penguin, on Tasmania's north coast, has a median house price of just $570,000. Picture: realestate.com.au/sold
Notably, Queensland and New South Wales had more in-demand beachside suburbs than the other states – a result of proximity to state capitals of Sydney and Brisbane, greater levels of coastal development, as well as climates that support a beach-oriented lifestyle year round.
The data uses PropTrack's automated valuation model (AVM) to determine a suburb's median property value.
New South Wales
| Suburb | Region (SA4) | Enquiries per listing | Median house value (AVM) | 12-month change | |
| 1 | Tweed Heads | Richmond - Tweed | 60 | $1,206,000 | 19% |
| 2 | Blacksmiths | Newcastle and Lake Macquarie | 52 | $1,082,000 | -1% |
| 3 | Thirroul | Illawarra | 52 | $1,799,000 | -3% |
| 4 | Shoal Bay | Hunter Valley exc Newcastle | 50 | $1,044,000 | 5% |
| 5 | Caves Beach | Newcastle and Lake Macquarie | 44 | $1,420,000 | 7% |
| 6 | Bulli | Illawarra | 44 | $1,528,000 | 0% |
| 7 | East Ballina | Richmond - Tweed | 43 | $1,239,000 | 9% |
| 8 | Suffolk Park | Richmond - Tweed | 43 | $1,760,000 | 8% |
| 9 | Anna Bay | Hunter Valley exc Newcastle | 42 | $888,000 | 0% |
| 10 | Ocean Shores | Richmond - Tweed | 42 | $1,125,000 | 6% |
| 11 | Shellharbour | Illawarra | 42 | $1,151,000 | 4% |
| 12 | Kiama | Illawarra | 42 | $1,592,000 | 10% |
| 13 | Mollymook | Southern Highlands and Shoalhaven | 40 | $1,120,000 | -1% |
| 14 | East Corrimal | Illawarra | 40 | $1,544,000 | 0% |
| 15 | Austinmer | Illawarra | 40 | $2,041,000 | -6% |
| 16 | Woonona | Illawarra | 39 | $1,359,000 | -2% |
| 17 | Gerringong | Illawarra | 39 | $1,539,000 | 5% |
| 18 | Belmont | Newcastle and Lake Macquarie | 38 | $882,000 | 5% |
| 19 | Kiama Downs | Illawarra | 37 | $1,283,000 | 4% |
| 20 | Redhead | Newcastle and Lake Macquarie | 37 | $1,607,000 | 5% |
Perhaps unsurprisingly, buyers looking for the next Byron Bay may not need to stray too far from Byron itself, with several nearby suburbs recording high levels of demand.
Suffolk Park and East Ballina to the south as well as Ocean Shores to the north were among the most sought-after beachside suburbs in NSW, which Mr Dunn said reflected a spillover effect.
Perhaps the best place to find the next Byron Bay is just down the road – Suffolk Park offers a similar lifestyle at a more affordable price point, as is just as in-demand. Picture: realestate.com.au/sold
“The younger generation that can't afford Byron, so many are buying down there,” he said.
Tweed Heads topped the list for enquiries per listing, with the strong demand reflected in the 19% uplift in values through 2024.
Blacksmiths, Caves Beach and Belmont in the Lake Macquarie region were in high demand, as were several Illawarra suburbs including Thirroul, Bulli, Shellharbour and Kiama.
Caves Beach, about two hours north of Sydney, is one of the most in-demand beachside suburbs in NSW. Picture: realestate.com.au/buy
The proximity of these suburbs to Sydney, Newcastle and Wollongong gives access to a broad buyer pool empowered by hybrid work arrangements.
Queensland
| Suburb | Region (SA4) | Enquiries per listing | Median house value (AVM) | 12-month change | |
| 1 | Bucasia | Mackay - Isaac - Whitsunday | 85 | $585,000 | 25% |
| 2 | Slade Point | Mackay - Isaac - Whitsunday | 78 | $510,000 | 24% |
| 3 | Tugun | Gold Coast | 72 | $1,309,000 | 12% |
| 4 | Blacks Beach | Mackay - Isaac - Whitsunday | 72 | $569,000 | 27% |
| 5 | Currumbin | Gold Coast | 67 | $1,607,000 | 9% |
| 6 | East Mackay | Mackay - Isaac - Whitsunday | 66 | $979,000 | 9% |
| 7 | Coolangatta | Gold Coast | 64 | $1,640,000 | 7% |
| 8 | Eimeo | Mackay - Isaac - Whitsunday | 60 | $610,000 | 22% |
| 9 | Currimundi | Sunshine Coast | 59 | $987,000 | 8% |
| 10 | Caloundra | Sunshine Coast | 58 | $979,000 | 9% |
| 11 | Miami | Gold Coast | 55 | $1,607,000 | 10% |
| 12 | Burleigh Heads | Gold Coast | 54 | $1,520,000 | 10% |
| 13 | Alexandra Headland | Sunshine Coast | 54 | $1,730,000 | 2% |
| 14 | Palm Beach | Gold Coast | 53 | $1,664,000 | 9% |
| 15 | Moffat Beach | Sunshine Coast | 52 | $1,488,000 | 10% |
| 16 | Sunshine Beach | Sunshine Coast | 52 | $3,000,000 | 2% |
| 17 | Buddina | Sunshine Coast | 51 | $1,585,000 | 8% |
| 18 | Golden Beach | Sunshine Coast | 50 | $1,115,000 | 7% |
| 19 | Mudjimba | Sunshine Coast | 50 | $1,373,000 | 4% |
| 20 | Maroochydore | Sunshine Coast | 49 | $1,047,000 | 6% |
The majority of the most in-demand beachside suburbs of regional Queensland were found in the major centres of the Sunshine Coast and Gold Coast.
Prices surged dramatically since the pandemic in many of these areas as buyers flocked towards lifestyle destinations outside the capitals, but with some of the highest enquiries per listing in the country, it’s conceivable strong price growth could continue in years to come.
Slade Point in Mackay's north has a median house price of $510,000, and while properties by the beach can sell for about $1.2 million to $1.5 million, that's still relatively affordable for an oceanfront home. Picture: realestate.com.au/sold
“You can see the kind of dynamic in the Sunshine Coast that we saw in Byron,” Mr Ryan said.
“Now it's an exclusive luxury market, but 10 or 15 years ago it was a bit more relaxed and more of a retiree vibe than it is now.”
However, the data also suggested several much more affordable suburbs further north could be primed for growth.
Despite values surging 22% last year, Eimeo near Mackay has a median house price of just $610,000. Picture: realestate.com.au/buy
Five beachside suburbs of Mackay — Bucasia, Slade Point, Blacks Beach, East Mackay and Eimeo — recorded levels of enquiry exceeding that of most other coastal suburbs in Australia.
All had house prices well below $1 million – Slade Point being the most affordable with a median value of $510,000.
Victoria
| Suburb | Region (SA4) | Enquiries per listing | Median house value (AVM) | 12-month change | |
| 1 | Grantville | Latrobe - Gippsland | 18 | $582,000 | -1% |
| 2 | Ventnor | Latrobe - Gippsland | 18 | $778,000 | -5% |
| 3 | Coronet Bay | Latrobe - Gippsland | 16 | $524,000 | -4% |
| 4 | Surf Beach | Latrobe - Gippsland | 14 | $743,000 | -2% |
| 5 | San Remo | Latrobe - Gippsland | 14 | $888,000 | -2% |
| 6 | Jan Juc | Geelong | 14 | $1,350,000 | -1% |
| 7 | Cowes | Latrobe - Gippsland | 13 | $712,000 | -5% |
| 8 | Ocean Grove | Geelong | 13 | $911,000 | -6% |
| 9 | Cape Woolamai | Latrobe - Gippsland | 12 | $730,000 | -4% |
| 10 | Apollo Bay | Warrnambool and South West | 10 | $953,000 | -2% |
The most in-demand coastal suburbs in regional Victoria had fewer enquiries per listing than the other east coast states, with the increased number of properties on the market across Victoria diluting demand.
With more homes to choose from and prices still below previous peaks, it’s a buyer’s market in Victoria’s coastal hotspots, even where enquiries are strongest.
Affordable beachside suburbs on Phillip Island such as Surf Beach are among the most in-demand coastal suburbs in Victoria. Picture: realestate.com.au/sold
The data showed suburbs of Phillip Island, such as Ventnor, Surf Beach and Cowes, were just as sought-after as the Mornington Peninsula’s most in-demand suburbs, yet typically more affordable.
Western Australia
| Suburb | Region (SA4) | Enquiries per listing | Median house value (AVM) | 12-month change | |
| 1 | Withers | Bunbury | 46 | $483,000 | 35% |
| 2 | Geographe | Bunbury | 39 | $741,000 | 18% |
| 3 | Busselton | Bunbury | 36 | $783,000 | 12% |
| 4 | Dunsborough | Bunbury | 34 | $1,090,000 | 5% |
| 5 | Broadwater | Bunbury | 30 | $795,000 | 15% |
| 6 | Bunbury | Bunbury | 29 | $788,000 | 23% |
| 7 | West Busselton | Bunbury | 28 | $746,000 | 16% |
| 8 | Dalyellup | Bunbury | 23 | $660,000 | 26% |
| 9 | Leschenault | Bunbury | 23 | $938,000 | 21% |
| 10 | Australind | Bunbury | 22 | $646,000 | 24% |
All the most in-demand beachside suburbs in regional Western Australia were found within or near Bunbury and Busselton, about two hours’ drive south of Perth.
The wider region is known for the natural beauty of its pristine beaches and national parks, as well as its fresh produce, wineries and craft breweries.
Busselton's natural beauty and laid back lifestyle attracts holiday makers, investors and even FIFO workers looking for an affordable coastal home. Picture: realestate.com.au/sold
Despite strong price growth recently, houses are still affordable. Only one of WA’s top 10 most in-demand beachside suburbs had a median house price higher than $1 million – Dunsborough, about 20 minutes from Busselton and on the doorstep of the Margaret River wine region.
South Australia
| Suburb | Region (SA4) | Enquiries per listing | Median house value (AVM) | 12-month change | |
| 1 | Moonta Bay | Barossa - Yorke - Mid North | 27 | $524,000 | 10% |
| 2 | Normanville | South Australia - South East | 26 | $709,000 | 4% |
| 3 | Wallaroo | Barossa - Yorke - Mid North | 24 | $456,000 | 12% |
| 4 | Goolwa Beach | South Australia - South East | 22 | $580,000 | 9% |
| 5 | Encounter Bay | South Australia - South East | 20 | $698,000 | 8% |
Buyers looking for South Australia’s answer to Byron Bay could look at Normanville on the Fleurieu Peninsula, which has a similar country-meets-coast feel.
Goolwa Beach would appeal more to surfers, while Encounter Bay offers unobstructed ocean views.
Many homes on Encounter Bay's prestigious Franklin Parade have sweeping ocean views. Picture: realestate.com.au/sold
Wallaroo and Moonta Bay on the Yorke Peninsula are more affordable alternatives, with median prices closer to $500,000.
Tasmania
| Suburb | Region (SA4) | Enquiries per listing | Median house value (AVM) | 12-month change | |
| 1 | Devonport | West and North West | 19 | $469,000 | 5% |
| 2 | Penguin | West and North West | 18 | $570,000 | 4% |
| 3 | Ulverstone | West and North West | 16 | $502,000 | 6% |
| 4 | Somerset | West and North West | 15 | $449,000 | 6% |
| 5 | Cygnet | South East | 15 | $651,000 | -2% |
While Tasmania may not have a climate conducive to year-round swimming, the state’s most sought-after beachside towns are certainly more affordable than their mainland counterparts.
This three-bedroom mid-century home with ocean views in Penguin on Tasmania's north coast recently sold for $780,000 – less than the cost of a typical Sydney apartment. Picture: realestate.com.au/sold
It’s possible to find a house in a beachside suburb such as Penguin, Ulverstone or Somerset on the north coast suburbs for less than $500,000, although homes with views cost a little more.
This post was originally published on https://www.realestate.com.au/news/the-next-byron-bay-the-aussie-coastal-hotspots-that-are-primed-to-boom/?campaignType=external&campaignChannel=edm&campaignSource=braze&campaignName=content&campaignPlacement=a1&campaignContent=wnl
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