Homes have rised 11% on average in Byron Bay.
Homes have rised 11% on average in Byron Bay. Thinkstock

House prices on rise in Byron, most pricey in coastal Oz

BYRON Bay has recorded the highest median house price among Australian coastal towns with the average value now $664,000.

And despite its party town reputation, it's also recorded a significant growth in elderly residents over the last five years and a fall in the number of young people.

PRDnationwide research analyst Aaron Maskrey said key findings from research completed in 17 coastal towns around the country last year demonstrated that the average Byron Bay house price was up 11.1% or $66,500 from 2011.

The research included Byron Bay, Coffs Harbour, The Entrance and Yamba in NSW; Agnes Water, Gold Coast, Hervey Bay, Port Douglas, Sunshine Coast, Whitsundays and Yeppoon in QLD; the Fleurieu Peninsula in SA; Bells Beach, Lakes Entrance and 90 Mile Beach in Victoria; and Broome and Dunsborough in WA.

Aerial photograph of Byron Bay. Photo Patrick Gorbunovs / The Northern Star
An aerial photograph of Byron Bay. Patrick Gorbunovs

Mr Maskrey says the Byron Bay house market appears to have lifted off the bottom of its cycle from the second half of 2011 with sales activity strengthening by 42.3%.

"Observing the demographic shifts within Byron Bay, it is apparent that a large portion of the youth population aged 24 and under have left the region over the past five years, amounting to a fall of almost 3%," he said.

The age segment of 55 to 74 has increased by a large 5.6% of total residents.

"This significant shift is greater than just a resident population ageing and signifies a growing number of incoming residents that have just retired or are near retirement," he said.

Of all coastal towns included, Byron Bay was also in the top three gross rental yields for units at 6.3% with the average 4.8%.