Why Byron Bay prices falling 25pc isn’t all bad

Byron Bay’s house and apartment values are expected to continue falling beyond the 25 per cent drop they are already exhibiting but that will draw in buyers, say the experts.

66 Lizray Rd, Federal is positioned on 2ha of land and has ocean, lighthouse and hinterland views.

Byron Bay’s house and apartment values are expected to keep plummeting past the 25 per cent downward spiral they are already exhibiting, but pundits believe this could pave the way for buyers previously locked out of the region to edge their way in.

The idyllic NSW north coast township’s residential values dropped to an average $2.325m over the past year, according to ­realestate.com.au, while unit prices fell 17.7 per cent to $1.09m.

CoreLogic research director Tim Lawless said it was a pretty tough market at the moment with not much happening, with values down 25-30 per cent over the past year, and he expected prices to keep dropping. No price rebound was expected for at least the next six months.

“Values are trending lower – it has not bottomed out just yet,” Mr Lawless said.

“However, we are still seeing values a lot higher than they were at the onset of the pandemic.

“In 2022 there was severe flooding in the region, which had a negative impact on the region. Prices are still falling, they are trying to find a floor, (but) it’s pretty clear the rate of decline is still a way off.

“You would have to think there are still people that missed out through the previous growth phase who will be trying to get into the Byron market.”

Mr Lawless said that at the end of the day, it was a market that was very popular, thanks to the airport at Ballina, the airport at Coolangatta, and one of the best beaches in Australia. It still had a real magnetism for attractive, well known people.

“You would have to think it has to bottom out, it’s probably imminent, (but) the fact that values have fallen, it’s not surprising.”

He predicted that values would show a gradual rebound over the next six to 12 months, adding that prices were still above what they were prior to the Covid-driven price surges.

First National Byron Bay agent Denzil Lloyd said there were good opportunities for people buying in Byron and in the hinterland. He was seeing a resurgence of interest from a broad demographic of buyers from metropolitan areas including Brisbane, the Gold Coast, Sydney and Melbourne.

“There’s been some very good interest and we have had some very strong sales. There’s still some great value, there’s still some exceptional value,” Mr Lloyd said.

He added that prices for properties affected by the 2022 floods would rise once the local council fixed road infrastructure.

Mr Lloyd just sold the 1.2ha 70 Whian Rd, Eureka, with a renovated four-bedroom house, for $5.35m to a Sydney couple who live offshore.

He also sold a 34ha property with swimming pool at 388 Repentance Creek Rd, Federal, for $6.4m to a Brisbane family.

He just listed First Light Farm, in the Byron hinterland, with an asking price of $6.6m on behalf of Darren Gallant and Yonna Derofe, founders of the Temple of the Sun jewellery chain.

Ten bedrooms are spread across a Queenslander, an architect-designed main residence, and a self-contained cottage at the property at 66 Lizray Rd, Federal. Set on 2ha, the property has two pools with ocean, lighthouse and hinterland views.

The original Queenslander, joined to the five-bedrom main house, is self-contained, and features open-plan living with an abundance of natural light, polished wooden floors and wraparound decks overlooking the lawns. There are three bedrooms, two with ensuites, and a sunroom for a dining space.

The two-bedroom cottage rounds out this property and features a wide veranda, open-plan living and sunroom.

The estate is surrounded by established trees, tropical plantings and manicured lawns. The lagoon-style pool is a perfect place to relax in the shade of palms, according to the marketing.

Another property on the market, through Su Reynolds of First National Byron Bay, is 14 Rifle Range Rd, Bangalow. The four-bedroom property on 1600sq m sold for $3.5m in June 2021. The farmhouse built in 1920 was originally set on 12.1ha. It now has a price guide of $3.75m to $3.95m. There are cedar-lined walls, high ceilings, wide arched hallways and original hardwood polished floorboards.