Aussie beachside towns: Property prices show ‘Hemsworth effect’ in the past

The ‘Hemsworth effect’ that once drew the world to Byron Bay appears to be in the past, with lesser known towns replacing it as our top beach destinations.

Fiona Killman

@FionaKillman

3 min read

July 11, 2023 - 5:00AM

Australian beachside towns got a boost from the "Hemsworth effect" in the past.

The ‘Hemsworth effect’ is in the past as unknown Aussie beachside towns record huge growth.

Ray White property sales data has revealed the biggest growth and decline in regional coastal towns across Australia over the past year with Byron Bay a noticeable absence from both lists.

The popularity of Byron Bay among so many celebrities including Chris and Liam Hemsworth at the height of Covid drove up property prices with locals eventually priced out of the region – a phenomenon coined “the Hemsworth effect” that was made popular by James Weir’s book of the same name.

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Ray White Data Analyst William Clark said many lesser known coastal towns were recording huge growth while the powerhouse towns such as Byron Bay had “eased off” following a huge influx during the pandemic.

The “Hemsworth effect” refers to the significant growth of the Byron Bay region after <br/>Chris Hemsworth, wife Elsa Pataky and brother Liam Hemsworth moved in. Picture: Sebastian Reuter

The “Hemsworth effect” refers to the significant growth of the Byron Bay region after
Chris Hemsworth, wife Elsa Pataky and brother Liam Hemsworth moved in. Picture: Sebastian Reuter

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“While the heady growth in Byron Bay, attributed to the ‘Hemsworth effect’ appears to be a thing of the past, we see growth in coastal regions all over Australia is far from gone,” he said.

“Places like Byron were never going to stay at the top of the lists forever. Prices are not falling either, we are just not seeing the eye-watering growth we have seen in past years.

“There's less of a rush and people are looking elsewhere for cheaper prices.”

Byron Bay has “eased off” in terms of growth. Picture: Tim Marsden

The biggest growth has come from Melbourne’s Shoreham and Cape Schanck, which have grown hugely by $905,000 and $857,500 respectively to both join the $2m plus club.

Next in line was the Sunshine Coast’s Dicky Beach, growing by $412,000 followed by NSW’s Mossy Beach, on the south coast, up by $400,000.

Mr Clark said the top growth came from a range of locations from the luxury to medium-affordability markets.

“Some of the price growth suburbs are less well known while others are closer to the cities and more accessible,” he said.

“It is in fact more common to hear about the ‘reverse Chris Hemsworth effect’ these days, as commentary focuses on the retreat from coastal regions.”

A home in Inglis Court, Cape Schanck, sold for $2,250,000 in December 2022

William Clark, data analyst from Ray White.

When it came to coastal towns with the largest price falls, Western Australia’s Eagle Bay and the Sunshine Coast’s Sunshine Beach had the biggest drops of $700,000. Sunshine Beach fell out of the $3m plus range to a median price of $2.575m.

The NSW Central Coast’s Pearl Beach, where many Sydneysiders fled during the pandemic, has also fallen $639,000 to a median price of $1.8m while Illawarra’s Bawley Point has dropped its median price by almost $500,000.

Sunshine Beach, south of Noosa, fell out of the $3m club.

Pearl Beach on the Central Coast has seen a significant decline in property prices.

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“The top end has taken somewhat of a hit, as one suburb has dropped out of the three million dollar club in the last year,” Mr Clark said.

“With Byron Bay and Newrybar failing to make the list of suburbs with largest price falls, we can let Thor off the hook when it comes to beachside property price losses as well.

“Some of the most expensive holiday home suburbs are on the list here, with the luxurious Sunshine Beach and Portsea seeing $400,000 or more lost in median price in the last year.

“It appears the coastal holiday home market has been far more resilient than early commentary had suggested. And as our capital cities now return to growth, it is likely the holiday home will see at least some of the same gains seen in the cities.”

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Mr Clark said 25 regional coastal suburbs had risen above the half-million dollar price point.

“It’s a sure sign of the strong demand that remains in beachfront Australia,” he said.

“Coastal houses with a median prices less than $500,000 is likely to become lot more rare. The one million to two million dollar bracket looks like the fastest growing.”