Waterfront homes see values surge as scarcity drives prices to new heights

Living by the water is now 86 per cent more expensive than an inland equivalent, as beachfront scarcity drives values to record highs.

Australian waterfront properties have experienced significant value uplift.

The scarcity of waterfront land continues to hike prices for coastal and riverfront homes, particularly those with private beach access, a report from McGrath Research on the sector reveals.

Australian waterfront properties have experienced significant value uplift – rising from 44 per cent in the third quarter of 2017 to 71 per cent in the third quarter of this year – when compared with the prices of non-waterfront inland homes.

“Waterfront homes across Australia are worth an average 86 per cent more than their inland equivalents in 2025, trending upwards from an 81 per cent uplift two years ago,” the report says.

All four major waterfront cities along the east coast, Sydney, Melbourne, Brisbane and the Gold Coast, recorded an uptick in their waterfront house and apartment premiums over the past five years.

8 Border Street, Belongil, in Byron Bay, sold for $33.5m.

Of the four cities, Sydney had the strongest premium value uplift of 122 per cent this year, up from 118 per cent in 2023, while on the Yarra River and around the bay Melbourne saw the greatest change in the premium paid for waterfronts with an uplift of 43 per cent this year compared with 38 per cent two years ago.

Sydney’s Mosman, Vaucluse and Hunters Hill were among the top five east coast areas for waterfront city house sales in the five years to September.

Regionally, Queensland’s Broadbeach Waters was the top performer for rural waterfront house sales, with 52 houses selling in the five years ending September this year.

Noosa Heads, Main Beach, Palm Beach, Surfers Paradise and Mermaid Beach were the top areas for regional waterfront apartment sales in the five years to September.

Despite its popularity, Byron Bay did not feature in the top five regional areas for waterfront house sales in the past five years.

However, McGrath Byron Bay agent Nick Dunn sold 8 Border Street, Belongil, for $33.5m, a record for the area. “This waterfront property might have started higher at $40m but the sale of $33.5m is a record sale in the entire history of Byron,” he said, adding that turn key properties such as Border Street were highly desirable in Byron Bay.

92-94 Kangaroo Point Rd, Kangaroo Point, has a boatshed, jetty and level lawns on a 1507sq m deep waterfront.

Mr Dunn estimated a non-waterfront residential property in the Belongil Beach or Wategos Beach area would comfortably sell for between $20m and $30m, which reveals the price difference between waterfront and non-waterfront properties.

On the eastern seaboard, McGrath has several waterfront and riverfront properties on the market. With its elegant Cape Dutch architecture, 120 Pumping Station Road in Tasmania’s Forth Valley is reminiscent of some of the great country estates dotting the fabled South African winelands. This 2.14ha property, fronting the Forth River, features a main four-bedroom homestead plus a self-contained riverfront cottage. The self-contained retreat operates as successful short stay accommodation and includes a claw foot bath overlooking the river. The property is available through McGrath agent Vanessa Goodwin, with a price guide of $1.7m plus, and is 10 minutes drive from Devonport and one hour from Cradle Mountain.

In Cronulla, 25 Darook Park Road in Sydney’s south has views of Gunnamatta Bay, and includes a multi-level floorplan.

25 Darook Park Road, Cronulla, looks out on Gunnamatta Bay.

McGrath agents Murray Cole and Lachlan McCarthy said the price was on application.

In Sydney’s Kangaroo Point, a guide of around $15m has been put on a newly built six-bedder with boatshed, jetty and level lawns on a 1507sq m deep waterfront through McGrath St George agent Matthew King. The 92-94 Kangaroo Point Road home also sports a spa and pool.

In Brisbane, offers above $4.5m are expected for the four-bedroom 13/680 Jesmond Road, Fig Tree Pocket riverfront ­property for sale through ­McGrath’s Alex Jordan and ­Oliver Campbell.

“With limited availability of established waterfront homes, demand is expected to remain strong well into the future,” the McGrath report says.