Byron Bay’s celebrity spotlight appears to have waned, with house prices in the suburb dropping by over a third in the last year according to new data from PropTrack.
Home to actor Chris Hemsworth at the start of the decade, the so-called ‘Hemsworth effect’ was drawing in A-list interest to the coastal town in NSW’s north.
Zac Efron rented a $22m mansion near the area in 2020, before purchasing a 128ha estate north of Byron for $2m.
Matt Damon also spent time in Byron as a tenant, staying at a European-style mansion during the filming of Thor: Love And Thunder.
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Thor star Chris Hemsworth in Byron Bay.
Chris Hemsworth and Matt Damon attend Bluesfest at Byron Bay in 2018. Picture: Instagram @bluesfestbyronbay.
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This period saw median house prices climb to $3.45m in June 2022.
Now, data from PropTrack reveals the median house price in Byron Bay has declined by 31.3 per cent over the last 12 months, reaching $2.3m.
This spectacular fall has meant the median house price is now just 7 per cent higher than it was at the end of 2020. For some context, house prices in Brisbane, Perth and Adelaide have nearly doubled over the same period, while prices in regional NSW climbed by about 48 per cent.
Experts opinions differ on the impact of Hemsworth and other A-listers on the Byron region’s real estate market.
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The eight-bedroom Chateau Du Soleil in Byron Bay, which costs $7000 a night, housed Matt Damon during the pandemic.
Zac Efron was active in the Byron Bay market in the early 2020s. Picture: Instagram
It is worth noting the volatily of Byron’s median house price figures, which have fluctuated between the $2.3m and $3.4m range over the last five years.
Aus Property Professionals director Lloyd Edge said the presence of celebrities was a “major factor for Byron Bay” during the early portion of the decade.
“While many regional areas grew a lot in value during and post-Covid, Byron Bay had an unusual and unprecedented growth which can be attributed to celebrities such as Hemsworth,” he said.
“People wanted to be part of a community that attracted these celebrities … and the huge demand pushed prices sky high.”
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The tide may have turned for property prices in the region known for its surf. Picture: iStock.
Byron Bay’s five-year median house price trend shows a tendency for prices to fluctuate. Source: PropTrack.
Of the area’s price decline this year, Mr Edge said houses were “generally overpriced” and showed “unsustainable growth”.
“The value did not stack up when compared to what average income earners in the area could afford to pay,” he said.
“The house price growth created a bubble.
“Once the celebrity effect is not the driving factor, other factors that usually help a location with capital growth such as transport infrastructure, location, population increase and jobs growth did not really come into play in the same way in Byron.”
Byron Bay is home to some extraordinary homes, such as these mansions lining Pacific Vista Drive.
Aus Property Professionals director Lloyd Edge says the high demand for Byron Bay homes created a “bubble”.
Conversely, other experts have said that Byron Bay’s property market has maintained strength for many years.
Propertyology head of research Simon Pressley said the idea of Hollywood stars being a major factor in Byron’s property market performance was “utter nonsense”.
“Despite their big public profiles, the reality is they represented a handful of transactions among a city which averages 750 transactions per year,” he said.
Mr Pressley said 900 transactions were completed in Byron Bay in 2025.
“That’s not far off the 950 properties purchased during the city’s strongest years of 2016 and 2021,” he said.
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Propertyology head of research Simon Pressley.
While the median house price has dropped in value, Byron Bay units grew 12.6 per cent in 2025, according to PropTrack data.
Mr Edge said this was all down to affordability.
“It’s the price point,” he said.
“They are also lower maintenance and are often preferred by investors and those seeking holiday homes.
“For those seeking a tree change and moving to the area, units present better value and an easier way to get into the market.”
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