Could these idyllic coastal areas be the next Byron Bay?

Amidst the uncertainty of COVID, one thing is for sure – the trend towards coastal living it has inspired will almost certainly continue unabated.

One of the prime beneficiaries of this move out of cities and to peaceful lifestyle hotspots is Byron Bay.

Once a sleepy hippie haven, it has evolved in recent years into an exclusive playground for the trendy, the rich and the famous – including the likes of Chris Hemsworth, Matt Damon, and Zac Efron.

Its popularity has boomed since the pandemic, with the town and its surrounding areas on the New South Wales North Coast consistently in the top 10 performing regions in Australia over the past 18 months.

The trend towards remote work has supercharged buyer demand in Byron and, in turn, values, according to PropTrack senior economist Eleanor Creagh.

Byron Bay’s median house price has now reached a staggering $2.925 million, following a meteoric rise of 187.1% over the past five years.

So, where do hopeful buyers look if they want a similar idyllic coastal location that isn’t as overlived and high-priced as Byron, but still with solid long-term growth prospects?

Coastal areas need four key drivers to facilitate their popularity, according to buyer’s agent Rich Harvey, CEO of Propertybuyers.com.au.

They are good weather, strong lifestyle appeal, proximity to large centres and not being overpopulated.

These are the best potential contenders to be the next Byron Bay.

Lorne, Victoria
Oceanside Lorne, just two hours south of Melbourne and an hour from Geelong, and the hinterland towns surrounded by the extensive Angahook State Forest and the Otway National Park, are not too dissimilar to Byron Bay.

They offer great mid-term potential, according to WBP Group Executive Chairman Greville Pabst.

Both Lorne and Byron are surrounded by state and national parks, which limits the supply of land available to develop housing and keeps the trajectory of prices high, Mr Pabst said.

“They are also both within walking distance to retail shops, cafes and restaurants, with Mountjoy Parade in Lorne directly opposite the beach,” he said.

Mr Pabst said Lorne was starting to attract big money, with the Lorne Hotel, home to the popular Movida and Coda restaurants, recently purchased by Justin Hemmes of the billion-dollar Merivale hospitality group for $38 million.

“The key advantage of Lorne is its elevation, with the streets behind rising steeply, which affords many properties spectacular views of Loutit Bay,” he said.

“It’s not uncommon for houses to sell for $5 million.”

The median house price has risen by 16 per cent over the past year to reach $1.74 million, while the median unit price has risen 24 per cent to hit $960,000, according to PropTrack data.

Empower Wealth Partner Bryce Holdaway said the surf coast of Victoria, from Torquay to Lorne, has standout potential.

“Lorne does have the same vibe that Byron Bay has, with the exception of one thing – the weather,” Mr Holdaway said.

“But it almost works both ways, as Byron Bay has a time of year when it can get sticky and uncomfortable.

“Lorne has world class surfing, fishing and trails, and is close to a major capital city as well, with Melburnians flocking to the region in droves whenever they can.”

Great Ocean Road agent Ian Stewart said ongoing buyer demand in Lorne would underpin prices in the future.

“That has been the case really for the past 30 years, but in the past two years the COVID spike has absolutely driven prices through the roof,” Mr Stewart said.

“Lorne is very, very tightly held. Stock levels are as low as at any stage we’ve seen in the last 10 years due to the demand.”

A four-bedroom house for sale at 4 Roache Court in Lorne for $2.95 million epitomises what a lot of buyers are looking for, he said.

“It has views, it’s modern, it’s open plan with decks, and is a little bit unique in its design.”

Anna Bay, Port Stephens
Two hours from Sydney on the New South Wales’ north coast in the Port Stephens area, overlooking Stockton Beach, lies Anna Bay.

This is an increasingly desirable destination for buyers with potential to be the next Byron Bay, Mr Harvey said.

“Anna Bay is a lovely little sleepy retiree holiday area with a surf culture,” he said. “We regularly go for holidays ourselves and we love it.”

Hotspotting director and founder Terry Ryder said the Port Stephens precinct was underrated and undervalued, with its proximity to Newcastle and Sydney being an advantage, along with a very strong economy.

“It is one of the loveliest coastal areas in New South Wales and has the potential to grow in value,” Mr Ryder said.

First National Port Stephens agent Rebecca Dean has been selling real estate in the area for 20 years, but over the past few years she has seen the whole demographic of the area change – especially in Anna Bay.

“It used to be a cheaper area, but now it’s the place where everyone wants to be – it has beaches and surf and it’s 20 minutes closer to Newcastle than the other side of Port Stephens,” Ms Dean pointed out.

“Port Stephens now has more modern shops, coffee shops and bakeries, while five, six or seven years ago there was nothing like that, which is driving growth.”

While the region is traditionally a holiday area, Ms Dean said more people were moving permanently from the city and working from home.

With higher demand has come higher prices in Anna Bay, but it’s still relatively affordable with a median house price of $770,000, following 18 per cent growth over the past 12 months.

Ms Dean said single-level family houses with no views but close to the beach, such as 42 Argyle Avenue, would sell for between $1.3 million and $1.5 million, while homes with views, such as a current duplex listing at 37 Ocean Avenue, can sell for several million dollars.

Coolum Beach, Queensland
The Coolum Beach precinct on Queensland’s Sunshine Coast has been underrated for a long time but is now starting to be targeted by buyers, and shows exceptional price growth potential as a result, Mr Ryder said.

PropTrack data found the median house price rose by 47 per cent over the past 12 months to reach $1.15 million, while units grew by 42 per cent to hit $675,000.

“It's much cheaper than Noosa to the north but has the potential to be as popular,” Mr Ryder said.

“It has lovely beaches and spectacular vistas looking north towards Noosa, with a growing café and restaurant offering.”

North Shore Realty Coolum principal Noel Mooney said Coolum Beach was still a little village, landlocked by the coast, national parks and sugar cane farms, but change was underway.

Mr Mooney said $1 million would buy a basic home that would likely be knocked down, with prices right up into the multi-millions for properties with views.

A three-bedroom unit currently for sale on David Low Way, across from the beach with views, has a price guide in the low- to mid-$2 million range.

“Many properties have really good million-dollar views, but we don’t have the million-dollar houses that Sunshine Beach does,” he said.

“It’s just starting to happen where people are spending the right money on building the house, too.”

South West Rocks, New South Wales
The New South Wales northern coastal town of South West Rocks, sitting on Trial Bay just an hour north of Port Macquarie and 30 minutes from Kempsey, is another of Mr Harvey’s picks to be the next Byron Bay.

“It’s really beautiful,” he said.

“It’s got a similar beach area to Byron Bay on the peninsula but has a 50-year younger Byron-type feel.”

Mr Harvey said the appeal of South West Rocks was that it’s further flung, being around five hours from Sydney, but that could also impact whether the area gains greater popularity.

Agent Ross Lindsay of Harcourts – The Rocks said the town was currently a smaller community than Byron Bay but had been rapidly growing since COVID.

Mr Lindsay added that there were subdivisions underway – several of which are sold out – to cater for a bigger population, as well as improvements to amenity, with new cafes opening and redevelopment plans for the shopping centre.

“Demand for real estate in South West Rocks is almost out of control – it’s really, really busy,” he said. “It was a really peaceful village but it’s becoming busier now.

“I think South West Rocks has been a bit of a secret for a while, but the secret is now out.”

PropTrack data shows house prices have grown by 14 per cent over the past year to a median of $600,000, while the median unit price is $435,000 following 29 per cent growth.

A three-bedroom, two-bathroom unit at 102/19 Gregory Street being marketed for sale by Mr Lindsay for $925,000 already has three contracts issued, which is testament to the strong buyer demand.

The home is in a central location just minutes from the town centre, beach, shops, cafes, and restaurants, overlooking Back Creek.

(credits to: Vanessa De Groot,  realestate.com.au/news)