It was the hottest property market during the Covid pandemic, but the celebrity haven of Byron Bay has seen property prices see-saw in the years since. Now, there are early signs the coastal hotspot could be about to take off again.
Byron Bay has slipped in and out of the $3 million club several times since it first emerged on the list in 2022. As of September 2025, Byron Bay had a median house price of $2.44m according to PropTrack's automated valuation models.
Byron Bay ranked 8th in the country for growth in house valuations during the September quarter. Picture: Getty
But recently, Byron Bay has been gaining pace with home values up 13% in the last quarter - marking the eighth fastest growth across the country.
REA Group's executive manager of economics, Angus Moore, said lower interest rates have been supporting home prices in all markets this year, and Byron is no exception.
“Byron Bay was one of the stronger performing housing markets in the country across the pandemic with prices jumping around 80% from March 2020 to their peak in February 2022," he said. "Price growth for detached houses was even stronger, with prices nearly doubling from March 2020, until the RBA started raising rates in May 2022."
“Once the RBA started raising rates, and the pandemic was behind us, prices fell through 2022 and into 2023. Since then, prices have been tracking largely sideways until the start of 2025, when they started growing briskly again.”
Local agents are reporting a change in momentum. The mood has pivoted from measured optimism to a competitive market where prime properties are once again attracting bidding frenzies.
Property prices have been volatile in the years since Covid as rising interest rates dampened the rapid growth seen in 2021 and 2022. Picture: realestate.com.au
Scot Fuller, director and owner of Byron Shire-based agency Fuller & Co Property, notes that while the market’s low sales volume can lead to data volatility, the demand narrative is clear.
“The town is limited in sales volume so you will find that the true rises and declines in the property values will vary far more than what you see on the ground working in the property market,” Mr Fuller said.
“We are seeing investors start to enter the market strongly again,” he said. “I have also dealt with a lot of local transactions of residents both downsizing and upsizing. We are seeing a trickle down from the Brisbane and Gold Coast markets also which is stronger than previous times.
"The most in-demand section is the high $1m range to early $2m range is a very popular market at the moment and anything of good value is highly contested with buyers.”
Byron Bay became a celebrity haven during Covid, with the Hemsworths among its high-profile residents. Picture: Instagram
At the luxury end of the market, high-net-worth buyers are prioritising lifestyle over investment yield.
“It’s a safe haven, it’s an amazing place to raise children, everyone is accepted here, the community is so strong,” commented Tara Torkkola, a sales agent at First National Byron Bay, pointing to the region’s luxury appeal.
In recent months there have been fresh signs the so-called 'Hemsworth Effect' has reignited with new images showing renovations are underway at Liam Hemsworth's Byron Bay hinterland estate. That same month, a luxury estate sharing a property boundary with Chris Hemsworth and Elsa Pataky's family estate sold for $36m.
A Palm Springs-inspired coastal estate next door to Chris Hemsworth near Byron Bay was recently sold for $36 million. Picture: realestate.com.au/sold
The phenomenon was coined during the pandemic when an influx of celebrities - including Chris and Liam Hemsworth - settled in Byron Bay, driving up property prices and pricing many locals out of the region.
Jamie Durie is the latest celebrity to swap city life for the Byron shire, listing his $33m Sydney home for sale to build a sustainable 3D-printed home on a dairy farm in Bangalow.
For those seeking the Byron Bay lifestyle without the price tag, Ms Torkkola said a spillover is taking place in surrounding suburbs.
“Surrounding towns are having huge growth, but the whole area is, interest rates are steady and people are coming back or buying into the area — it’s not just about the golden grid in Byron town anymore!”
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