Do Australians still want beachside holiday homes?

The allure of beachside living has long captivated homeowners and investors in Australia, as the coastal lifestyle and scenic beauty continue to be highly sought after.

In recent years, Australia's beachside suburbs have experienced remarkable price growth, presenting a fascinating trend in the real estate market. Australia has an estimated 85 per cent of its residents living within 50km of the coast, and as the pandemic created a new digital workforce, residents in coastal cities moved to beachside towns. In this analysis, we look at regional coastal suburbs to see whether Australians still want a beachside holiday home. 

The answer is not clear cut. 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. At the most affordable end, 25 suburbs have risen above the half-million dollar price point, a sure sign of the strong demand that remains in beachfront Australia. The one million to two million dollar bracket looks like the fastest-growing.

The top price growth has been seen at a range of locations and in both luxury and medium-affordability markets. While the heady growth in Byron bay, attributed to the ‘Chris Hemsworth effect’ appears to be a thing of the past, we see growth in coastal regions all over Australia is far from gone.

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. 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.

Thank you William Clark, Ray White Data Analyst, for sharing this important information with us.