Surprise Aussie town beating out world’s luxury markets

PHOTO: Byron Bay

Byron Bay’s prestige property market is slated to grow more than any other area in the world in the next five years.

The NSW seaside town’s luxury dwellings will boom by as much as 35 per cent in the next half-decade, outstripping the rest of the globe, according to a report by property consultancy firm Knight Frank released on Tuesday.

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In the 2022 Wealth Report, Byron Bay was singled out as the most attractive place for luxury buyers in the Australasia region.

The other 11 places on the list, including central London, the Swiss Alps, and even a southern Italian town, were only expected to grow by between three and 30 per cent.

Demand for Australia’s prestige real estate is on the rise, and is classed as homes in the top five per cent of the market.

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The report categorised buyers of these “prime” residences as ultra rich individuals, with a net-worth on average of $40 million.

Michelle Ciesielski, Head of Residential Research at Knight Frank, told news.com.au: “Byron Bay has obviously been very popular with our local population but essentially it’s had closed borders.

“But looking over the coming years, [with borders opened up], it is expected to see the strongest growth in the luxury space.”

Byron Bay has been named as not just Australia, but the world’s strongest property market for the next few years.

Byron Bay made it onto the top 12 hot spots because of its “health and wellbeing” elements.

The report said the NSW border town is “primed for growth” because “Byron Bay’s environmentally minded council has limited the number of new homes built over the past few decades, meaning that the pace of development has been more measured than in other tourist towns.

“This is slowly shifting as the area’s housing shortage begins to impact on local residents, amplified by the recent influx of city-dwellers switching to hybrid work styles.”

Ms Ciesielski added: “Byron became a place to desire over the world.

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“A lot of movie production happened over the pandemic, and with more down time people were able to see more glorious images coming through [of Byron Bay].”

Byron Bay’s predicted skyrocketing prices for its luxury commodities follows a common Covid-19 trend, according to Ms Ciesielski.

“In 2020 they [high net worth Australians] wanted a home within driving distance to their main residence,” because of the threat of lockdowns, she explained.

“Now, we’re talking about the accessibility of places like Byron Bay, Gold Coast,” which are just a short plane ride or private jet ride away.