‘Attractive place to live’: Sea-change towns in the million-dollar club

It’s not only capital city homes that are demanding big bucks, with the median house price in eight regional local government areas now surpassing $1 million.

Byron Shire topped the list with a median house price of $1.5 million, Domain data for the June quarter showed. It was followed by Kiama on the NSW South Coast at $1.48 million.

Queensland’s Noosa Shire and Victoria’s Surf Coast Shire came in third and fourth with median price tags of $1.35 million and $1.25 million.

The other four million-dollar regional areas are in NSW: Wingecarribee ($1,195,000), Tweed ($1.15 million), Ballina ($1,079,500), and Wollongong, which has just surpassed the million-dollar mark this quarter at $1,030,500.

Domain senior economist Joel Bowman said that while the pandemic was a key factor in the price rises, with many city residents moving to coastal towns, the significant increase in house values—including over the past year—suggests other factors are also at work.

“It’s a lifestyle trade, so the regional prestige really remains quite strong,” Bowman said.

“When I talk about lifestyle, I think a lot of these suburbs have got a good mix between great natural amenities like very close proximity to pristine kind of beaches, but then they’ve also got a lot of the other infrastructure as well, such as great schools, good restaurants and other amenities.”

Bowman believes this lifestyle pull has attracted buyers, placing upward pressure on prices.

Another factor that Bowman said is having an effect and will likely increase over the next few years is Australia’s ageing population.

“As the population ages, you’re going to have a growing cohort of Boomers that are entering the retirement phase. And you’ve got that sea change that people go through when they retire, when they don’t need to be close to CBDs anymore.”

The recent RBA cash rate cuts have also had an impact, with “prestigious regional areas” including Byron – which peaked in the March quarter of 2025 at a record $1.52 million and edged back since – feeling the effects most.

“In short, I think you’ve got a lot of structural factors that are supporting those prices. And they’re unlikely to abate anytime soon,” Bowman said.

In Ballina, the median house price increased 10.7 per cent over the past year, and Bowman said that buyers priced out of neighbouring Byron are contributing to the increase.

“Some people are being priced out of the expensive areas, and there’s still a lot of demand for people to live in that broader Byron pocket but are looking at those cheaper kind of entry prices to be able to get in,” he said.

David Mills, principal at McGrath, Northern Rivers, said the increase also reflects the broader market.

“A subdued 2023 due to the interest rate rises put a dampener on demand; however, the market levelled out and demand returned in Spring 2024 as buyers got accustomed to the ‘new normal,’” he said.

For the most part, Mills said it is locals purchasing property in the LGA.

“Interstate and metropolitan interest remains very strong from an inquiry perspective. That is not translating into those buyers taking action, notably, we are now trending at 75 per cent local buyers from the same or adjoining suburb, up from a traditional 60 per cent mix,” he said.

In Victoria’s Surf Coast, Olivia Swann from Natural Real Estate in Torquay said that, in addition to the pandemic, it is the infrastructure and amenities offered that continue to draw buyers.

“The transformation of Torquay over the past two decades has played a significant role. Once a quiet coastal town, Torquay is now a thriving, well-serviced community with robust infrastructure, making it an attractive place to live year-round,” she said.

The 35.8 per cent rise in Surf Coast house prices over five years has affected who is buying in the area now, she said.

“For first-home buyers, entering the local market has become increasingly challenging due to the significant price growth in recent years,” she said.

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“However, for many long-term residents who already own property and are simply relocating within the area, it’s less of a concern.”

Queensland’s Noosa recorded a 68.8 per cent increase over five years but has held steady over the past year. A lack of stock has played a role, said Shane McCauley, director of Richardson and Wrench Noosa.

“The uncertain economic conditions have property owners in Noosa holding out for better times,” he said.

“We think it’s only a matter of time before it all starts again with inflation under control and interest rates on the decline. There isn’t any more land in Noosa to build new housing, so it will always have a positive effect on our property prices.”