Australian regional markets soften as the shine wears off popular lifestyle locales
The hottest market on the coast in recent years has also been the hardest hit
2 min
Australia’s pandemic-induced love affair with regional real estate has well and truly cooled, data from CoreLogic reveals.
Head of research at CoreLogic, Eliza Owen, said rate increases and softer markets had impacted the country’s most popular regional areas, with the Richmond-Tweed area in far north NSW the worst affected.
“It is unsurprising the Richmond-Tweed region recorded the strongest decline in house values and a sharp increase in other important metrics,” Ms Owen said. “This was the region where values skyrocketed, with houses increasing more than 50 percent during COVID, taking the median house value to more than $1.1 million.
“Since then much has changed with borders reopening, outbound travel returning, workers returning to the office not to mention the overlay of nine rate rises. It’s been a swift and significant shift.”
The Regional Market Update, which reports on house values in Australia’s 25 largest non-capital city regions, showed house market values in the area fell -18.6 percent over the 12 months to January, with houses sitting on the market for 71 days. Vendor discounting in Richmond-Tweed was also the highest of the regions at -8.3 percent. However, it is worth noting that house values in the region are still 23.7 percent above their pre COVID levels.
The Richmond-Tweed was also the worst performer for unit values, with lowest yearly growth down -10.0 percent and vendor discounts at -5.6 percent for the three months to January.
The Richmond-Tweed area was among four regions in Australia to record more than a 30 percent fall in sales with over the 12 months to November. The others were the Southern Highlands and Shoalhaven, NSW (-35.9 percent), Mid North Coast, NSW (-30.7 percent) and Latrobe-Gippsland, Vic (-30.3%).
The news was better for that other popular COVID destination, Queensland, particularly in the far north where unit growth continued to be strong. Cairns recorded the highest yearly growth at 17.3 percent while Mackay-Isaac-Whitsunday units had the shortest days on market, 32 days over the three months to January. The next fastest selling location for units was the historic Victorian centre of Ballarat, with 35 days on market.
In the WA town of Bunbury, houses took just 24 days to sell, the fastest regional results in the country, followed by Toowoomba on 28 days.
While some regional areas had experienced significant falls, Ms Owen said regional market performance overall continued to be more resilient than capital city dwelling markets.
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Byron Bay’s most compelling homes have always taken their cues from the climate. They open to the breeze, dissolve the boundary between inside and out and use tropical landscaping to create privacy without shutting out the natural world.
At 17 Kendall Street, those familiar coastal ideas have been elevated into something more architectural.
The five-bedroom residence is designed around a spectacular open-air courtyard, creating a private internal landscape where glass, stone, timber and water meet. Floor-to-ceiling glazing draws natural light into the interiors while framing the heated swimming pool and established tropical gardens from multiple points within the home.
The home was originally built in 2016, but underwent a major renovation last year following its $5.3 million sale in 2023. Sotheby’s Byron Bay agent Will Phillips has a $15 million price guide.
The transformation focused on both the home’s scale and its level of detail. Soaring voids and bold architectural forms create drama, but the material palette keeps the atmosphere warm. Rich timber, natural stone and handcrafted finishes temper the contemporary lines, allowing the residence to feel calm rather than imposing.
A sculptural spiral staircase forms the architectural centrepiece, connecting the home’s different spaces while providing a strong visual counterpoint to the horizontal lines of the courtyard and pool.
The planning is centred on connection. Multiple living and entertaining areas open to covered terraces, enabling the house to expand and contract according to the occasion. Smaller spaces support quiet family life, while the principal living zones and alfresco areas can accommodate considerably larger gatherings.
At the centre, the courtyard operates as more than an impressive arrival feature. It brings light and garden views deep into the plan, provides separation between the home’s different wings and creates a protected outdoor environment for year-round living.
Accommodation comprises five generously proportioned bedroom suites supported by five designer bathrooms. Their distribution through the residence gives family members and guests a greater sense of privacy, while the tropical outlook maintains a consistent connection between rooms.
Wellness Wing
The home’s most distinctive inclusion may be its dedicated wellness wing.
A private sauna, gym, Zen room and traditional Japanese soaking bath combine to create a retreat within the retreat. Rather than treating wellness as a single-purpose gym placed in a leftover room, the design gives it a dedicated sequence of spaces intended to support exercise, recovery and quiet.
The Japanese soaking bath is especially appropriate to the home’s broader architecture. Compact, deep and designed for immersion rather than conventional bathing, it complements the restraint of the Zen room and the calming views into the garden.
Outside, the heated pool and covered dining terraces provide the more social side of resort living. Tropical landscaping creates privacy around the residence, while the courtyard design allows greenery to remain visible throughout much of the interior.
Belongil Boom
The location adds another dimension to the property. Kendall Street sits near the Belongil side of Byron Bay, within walking distance of Belongil Beach and local dining including Belongil Bistro, Treehouse, Féu and the town centre’s broader collection of cafés, restaurants and boutiques.
That northern pocket is increasingly emerging as a prestige counterweight to Wategos and the tightly held Marine Parade strip at the opposite end of Byron Bay.
Much of the most visible investment has centred on nearby Border Street and the Belongil beachfront. Hospitality billionaire Justin Hemmes has assembled four residential holdings in the neighbourhood at a reported combined cost of about $45 million. His acquisitions include a beachfront holding bought for $16 million in 2023 and a subsequent creek-front purchase.
The Block judge and interior designer Darren Palmer and his husband, Olivier Duvillard, have also moved into the precinct, paying $4.2 million for an original home with creek views.
Luxury developer and builder GRAYA has made an even larger commitment. The Brisbane group acquired a substantial Border Street beachfront site for about $20.65 million in 2024, with plans for a major trophy-home project. Part of that holding was subsequently sold in a transaction that underlined how dramatically land values have moved.
The strongest evidence came from Chemist Warehouse director Damien Gance and his wife, Sasha Robertson. The couple paid $33.5 million in cash for the beachfront residence Malia, setting a Byron Bay house-price record and surpassing the $30 million sale of Watermark at Wategos in 2023. They then reportedly spent another $20 million securing the neighbouring vacant parcel, taking their combined Belongil investment to $53.5 million.
Those transactions do not make Kendall Street directly comparable with absolute beachfront property. They do, however, illustrate the growing weight of capital and attention shifting towards Byron Bay’s northern edge.
For decades, Marine Parade at Wategos has been the region’s clearest shorthand for trophy property. Border Street and the wider Belongil precinct are now building a comparable identity, supported by larger holdings, beachfront scarcity and an expanding concentration of prominent owners.
Property details
- Address: 17 Kendall Street, Byron Bay, NSW
- Location: Near Belongil Beach and Byron Bay town centre
- Original construction: 2016
- Last sale: $5.3 million in 2023
- Renovation: Major renovation completed in 2025
- Current price guide: $15 million
- Bedrooms: Five
- Bathrooms: Five
- Key features: Central open-air courtyard, heated swimming pool, tropical landscaping and multiple indoor-outdoor living areas
- Wellness facilities: Sauna, Zen room, gym and traditional Japanese soaking bath
- Nearby: Belongil Beach, Belongil Bistro, Féu and Treehouse
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