Holiday homes are seeing price declines
Holiday homes are seeing price declines. Image: Unsplash.
  • COVID hotspots experience plummeting demand, values drop by up to $700,000.
  • Some holiday locations still show growth, led by Shoreham in Melbourne.
  • Eagle Bay in WA the hardest hit, falling $701,000 between 2022 and 2023.

The Covid hotspots that were seeing unprecedented demand as city siders sought to escape Government-imposed lockdowns have now started to see demand drop away, with values tumbling by as much as $700,000.

According to Ray White, price declines in the higher-end holiday locations have seen one suburb drop out of the exclusive $3 million price bracket.

However, there is still growth in the number of holiday towns, according to the analysis.

At the most affordable end, 25 suburbs have risen above the half-million dollar price point, a sure sign of the demand that remains in beachfront Australia.

The one million to two million dollar bracket is the fastest-growing.

Ray White Group, data analyst, William Clark observed that, “Some of the most expensive holiday home suburbs are on the list [for least growth], with the luxurious Sunshine Beach and Portsea seeing $400,000 or more lost in median price in the last year.”

Suburbs tumble through a $700K wipeout

According to Clark, Eagle Bay in Western Australia’s South West has been the hardest-hit market in the country, with values declining over $700,000 in the space of 12 months, from $2.7 million to around $2 million.

Sunshine Beach in Queensland has also experienced a $700,000 decline in value, with median prices dropping from $3.275 million to $2.575 million.

In New South Wales, Pearl Beach has declined $639,000, Bawley Point has tumbled $485,000, Bundeena has declined $400,000, Casuarina is down $325,000, and Forresters Beach is off $260,000.

Portsea in Victoria is down $440,000, along with St Andrews Beach which is $260,000 lower.

While the WA hotspot of Yallingup is also down $271,250 in the past 12 months.

Top beachside suburb declines over the past 12 months

State Region Suburb 2022 2023 Difference ($)
WA South West Eagle Bay $2,700,000 $1,999,000 -$701,000
QLD Sunshine Coast Sunshine Beach $3,275,000 $2,575,000 -$700,000
NSW Sydney Pearl Beach $2,504,000 $1,865,000 -$639,000
NSW Illawarra Bawley Point $1,585,000 $1,100,000 -$485,000
VIC Melbourne Portsea $3,765,000 $3,325,000 -$440,000
NSW Sydney Bundeena $1,850,000 $1,450,000 -$400,000
NSW Richmond- Tweed Casuarina $2,300,000 $1,975,000 -$325,000
WA South West Yallingup $1,562,500 $1,291,250 -$271,250
VIC Melbourne St Andrews Beach $1,810,000 $1,550,000 -$260,000
NSW Sydney Forresters Beach $1,510,000 $1,250,000 -$260,000

Source: Ray White.

Hotspots rising

Clark said the top price growth has been seen across a range of locations and in both luxury and medium-affordability markets.

Shoreham and Cape Schank, in Victoria, have seen values soar $900,000 and $857,500 in the past 12 months, which is a sign there is still strength in the holiday home market.

Dicky Beach and Shelly Beach, in Queensland, have also seen values increase $412,500 and $372,125, respectively.

Missy Point in NSW has seen prices rise $400,000, along with Moonee Beach ($355,000), Catherine Hill Bay ($348,00), and Pambula Beach ($320,000).

While Middleton Beach in WA saw values increase $385,000 in the last year.

“While the heady growth in Byron Bay, attributed to the ‘Chris Hemsworth effect’ appears to be a thing of the past, [the] growth in coastal regions all over Australia is far from gone,” said Clark.

Top beachside suburb gains in the past 12 months

State Region Suburb 2022 2023 Difference ($)
VIC Melbourne Shoreham $1,625,000 $2,530,000 $905,000
VIC Melbourne Cape Schanck $1,380,000 $2,237,500 $857,500
QLD Sunshine Coast Dicky Beach $1,250,000 $1,662,500 $412,500
NSW South Eastern Mossy Point $1,060,000 $1,460,000 $400,000
WA Lower Great Southern Middleton Beach $615,000 $1,000,000 $385,000
QLD Sunshine Coast Shelly Beach $1,552,875 $1,925,000 $372,125
NSW Mid-North Coast Moonee Beach $950,000 $1,305,000 $355,000
NSW Hunter Catherine Hill Bay $1,127,000 $1,475,000 $348,000
NSW South Eastern Pambula Beach $980,000 $1,300,000 $320,000
QLD Sunshine Coast Noosa Heads $1,935,000 $2,225,000 $290,000

Source: Ray White.

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