Byron Bay NSW Property Investment

Byron Bay has compounded at 16.7%/yr over 5 years. Median sits in the $1,570,000–$2,533,676 (sources disagree, range shown — do NOT quote a single number) band today. Properties are sitting on market for 42 days (roughly balanced conditions).

• Median house: $1,570,000–$2,533,676 (sources disagree, range shown — do NOT quote a single number) | Units: $1,384,200
• Gross yield: 2.7% | Net yield: 1.2%
• 5yr price CAGR: 16.7%/yr | 3yr forecast: 7.1%/yr
• Population: 6,330 | Owner-occupier rate: 61% | Affluence: High

• Supply pipeline: Moderate — Strong population growth likely attracting new development approvals

• Vacancy: 3.0% (stable) | Rental demand: Moderate
• Median weekly rent: $1,300/wk | Days on market: 42 (stable)
• Tenant market — vacancy elevated, negotiate hard on rent.

• Median nightly rate: $350/night | Occupancy: 68%
• Estimated annual STR gross: ~$86,870/yr
• vs long-term rent: $67,600/yr (+29% STR premium — factor in higher management costs)

• Byron Bay Bypass (completed)
• North Byron Parklands (under_construction)
• Transport: Standard suburban transport access

If Byron Bay maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $2,863,677 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Byron Bay pull back 10-15% from $2,490,154, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

• Premium price point limits buyer pool and increases interest rate sensitivity
• - Distance from CBD may limit long-term capital growth potential

• Campsie (NSW): $1,865,686 median, 2.3% yield, 1.5% 1yr growth
• Pinkett (NSW): $2,650,000 median, 0.8% yield, 0.0% 1yr growth
• Long Point (NSW): $2,700,000 median, 1.2% yield, 12.5% 1yr growth

Byron Bay presents a compelling investment opportunity. The combination of solid fundamentals and moderate rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.7% and prioritise properties with value-add potential. Consider timing entry around the current boom phase of the market cycle.

• Entry range: $2,241,139 – $2,739,169
• Minimum gross yield to target: 4.5%
• Watch signal: vacancy dropping below 2% and days on market falling below 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.