Byron Bay prices plummet as celebrities leave

The coastal town that celebrities once flocked to is now suffering from a “reverse Hemsworth effect”, and it could be good news for buyers.

The picturesque coastal town of Byron Bay that celebrities once flocked to is now suffering from a “reverse Hemsworth effect”, and it could be good news for buyers.

Property prices are forecast to plummet further this year in the famous northern NSW town following an exodus of A-listers.

The area had become a haven for the stars during Covid, with many locals driven out of the region due to the extreme prices – a phenomenon that had become known as the “Hemsworth effect”, which James Weir’s book of the same name had made popular, Realestate.com.au reported.

For example, the Hemsworth’s LA-style compound has a price tag of $20 million, while the median sale price for a house in the area is a staggering $3.1 million.

However, the stars have been leaving paradise with Chris Hemsworth and wife Elsa Pataky rumoured to be selling their Byron compound in 2021 after making the move to Sydney. His brother Liam also left Byron that same year, moving to Los Angeles with girlfriend Gabriella Brooks.

Chris Hemsworth and Elsa Pataky moved to Sydney. Picture: Celeste Humphrey

Meanwhile, Efron had rented a $22 million mansion in Byron during 2020 while dating Vanessa Valladares, before buying an estate north of the area for $2 million. He still owns it but no longer lives in Byron, instead reportedly choosing van life.

A leading valuation company forecast further price drops in the area after last year’s drop in value.

Herron Todd White indicated a 15-20 per cent decline across the region in 2022. That’s in stark contrast to the surge in value during the prior two years that saw Byron become the fastest growing property market in Australia.

Zac Efron in Gold. Picture: Matt Nettheim

Property Valuer and report author Mark Lackey said inflationary pressures and interest rate hikes had led to an “unprecedented reversal of fortunes” for Byron.

“It is likely that there is still some room for the market to decline further, albeit at a less scary pace,” he said.

He said now could be the time for the buyer.

“Last year there were six properties listed below $700,000 across the shire’s main towns and villages. I foresee that in July 2023, there will be considerably better pickings for Byron Shire buyers in this price range.

“When the big money from out of town slows down, the local buyers should be better able to sniff out a property for themselves. So may it be in 2023.”

Byron Bay is experiencing a retreat. Source: Supplied

This Coopers Shoot acreage sold for $22m in Byron.

Meanwhile, CoreLogic’s Head of Research Eliza Owen said it’s no surprise the region recorded the biggest retreat.

“This was the region where values skyrocketed, with houses increasing more than 50 per cent during Covid, taking the median house value to more than $1.1 million.

“Since then much has changed with borders reopening, outbound travel returning, workers returning to the office not to mention the overlay of nine rate rises.

“It’s been a swift and significant shift.”