House prices in some of the most popular coastal areas hit hard by rising interest rates have started to recover, but beach house bargain hunters can still bag as much as a $500,000 discount compared with their peaks, data from CoreLogic shows.

Suburbs in the Richmond Valley-Tweed region, such as Byron Bay, Suffolk Park, South Gold Beach, Ocean Shores and Brunswick Heads, are showing signs of early recovery, with house prices increasing by up to 1.4 per cent in the past three months.