Byron Bay, post code 2481, now has a higher median house price than Sydney. An average Sydney house will now cost you over $900,000 and is expected to reach the million dollar mark by the end of the year. RP Data’s latest report pegs the Sydney median at $914,056 while APM/Pricefinder estimates Byron Bay to be at $936,660. RP Data only has Byron Bay figures for the year ending in January 2015 and that was $915,000.
Of course, Sydney has a much larger demographic than Byron Bay. Byron had only had 81 sales in the last 12 months compared to the many thousands in the Sydney Metropolitan area. But Byron Bay is now in the same league as blue ribbon suburbs in Sydney or Melbourne. Palm Beach would be comparable and has a median around $1.3M. We still fall short of elite Sydney suburbs like Double Bay $2.8M or Vaucluse $3.4M.
I have mixed emotions about this. It is terrible for young families, first home buyers and renters but good for retiring baby boomers about to cash out. Affordable housing here is out of the question and council and politicians who make noises about doing something about it are dreaming. The only short term option to relieve this pressure is to release more land which then creates its own problems and conflict.
More here in this article from the Gold Coast Bulletin.
This graph shows Byron Bay 2481 median house prices compared to Byron Shire LGA over the last 15 years. We can see the high that was experienced in 2007 – 08 and now the median price has now passed that high and owners of property in 2481 postcode could expect some capital gain in the short term.