2 days ago
Hemsworth link could help make Phillip Island next Byron Bay
The Victorian coastal hamlet of Phillip Island has been touted as having the potential to become Australia's next celebrity-studded coastal paradise, a la Byron Bay.
And the former Block destination has one big advantage over other contenders nationwide: the Hemsworths already own a home there.
The revelation comes as Ray White economics team research has revealed the best places to buy a holiday home with room to boom, and why the middle of winter might be the best time to sign up for a sea-change.
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For those on a budget, the best spots are in the state's far east and west.
House prices in the Glenelg region on the South Australian boarder can be as low as $352,000, according to the Ray White data.
While on Victoria's southeast coast the Longford-Loch Sport area isn't much more expensive with homes for $407,000.
Those looking for something closer to Melbourne will get the best value in the southern end of Werribee, where the median house price is just $746,599, or the wider Frankston region, which has an $840,217 typical value.
The research tracked Statistical Area level two regions, which are typically slightly bigger than suburbs of the same name, and can yield differing median prices to the suburb, but capture a broader range of homes that have the coast close at hand.
And now could be the best time to make a move.
Ray White Group chief economist Nerida Conisbee said buying a holiday home in winter could prove advantageous due to reduced competition from other buyers, leading to better deals and more favourable negotiation terms.
'Selling in winter in a beach side location is generally not something people do. If they are selling, they are potentially a highly motivated seller and that's where you could get a bargain.
'While you'll have greater choices in summer, it's in winter that buyers will have a higher chance to save money.'
While potential savings will vary in each state and location, some studies suggest an average of 0.51 per cent to 1 per cent less than other times of the year.
As for those looking to get a piece of the next Byron Bay, before prices take off, Ms Conisbee tipped Phillip Island.
With a surf lifestyle and community appeal, as well as property prices typically still well under $800,000, it shares many hallmarks of the NSW playground of Hollywood A-listers and Aussie richlisters — but not the price, with Byron Bay's typical house costing about $2.243m.
'So for people seeking a similar lifestyle, Phillip Island is becoming quite popular,' Ms Conisbee said.
'However, Victoria seems to be the area that's still a bit undiscovered (as a holiday destination) and hasn't seen the same (price growth) as other areas.
'So for those looking for a bargain – and a similar lifestyle to Byron – you'll find that the cheaper areas are in the east, starting at Phillip Island.'
And while the coastal hamlet hosted The Block in 2024, it's had its own star-power appeal for a lot longer.
Property records show Liam and Chris Hemsworth, alongside their parents Craig and Leonie, bought a home for $1.6m in a secluded pocket of Phillip Island in 2012.
It's a more modest space than the sprawling compounds the Hollywood heavyweight brothers own in Byron Bay, but might be a bit closer to the surfing-centric lifestyle they enjoyed while growing up on the island in the 2000s.
Phillip Island based real estate agent Greg Davis said the popular spot had been going through a transformation since the pandemic that was making it more like Byron Bay than ever before.
Mr Davis said in addition to Hollywood heart-throbs the Hemsworths, others calling it their home away from home included famous musicians, sporting greats and business leaders.
Most are drawn to the million-dollar water views on offer along its coastline, available for the about $2m you'd pay for a standard home in Byron.
Phillip Island has also hosted its share of music festivals – but goes a step further with the annual Moto Grand Prix, which has lured Hollywood A-listers including Eric Bana and Keanu Reeves.
Mr Davis said the Island had been transforming in recent years, with about 60 per cent of buyers today looking for a home there as a permanent residence — driving an increase in the presence of cafes, breweries and boutiques.
'It's certainly been busier than it was before Covid,' he said.
It's also going cheap at the moment, with prices in most suburbs around the Island still below their post-Covid peak, though Mr Davis said it wasn't likely to stay that way for long.
He's tipped areas like Smiths Beach and Cape Woolamai to be the first back into the million-dollar club, and popular Cowes might not be far behind.
'I've sold three in the past few weeks around the $2m mark,' he added.
Mornington Peninsula-based buyer's advocate Michael Sier said this winter and spring would likely be among buyers' last chances to really take advantage of a broader decline in Victoria's coastal property markets.
Mr Sier said additional land tax costs introduced by the Victorian government at the start of 2024 had turned many off of owning a beach house, unless it was their permanent residence.
However the Buyer X buyer's agent has noticed rising numbers of holiday home buyers contacting him this year.
While he noted that there were very different vibes in some of the most affordable pockets identified by the Ray White research, particularly suburban areas like Frankston, the wider Mornington Peninsula was still as much as 10 per cent below its peak for prices.
'So buyers still have an opportunity for properties where sellers are motivated to get it sold,' Mr Sier said.
VICTORIA'S MOST AFFORDABLE COASTAL HOUSE LOCATIONS
Source: Ray White Economics, figures track Statistical Area 2 regions that extend beyond named towns and locales.
Region (Statistical Area 2) Median house price Median unit price
GLENELG (VIC.) $352,674 N/A
LONGFORD – LOCH SPORT $407,134 N/A
ORBOST $416,170 N/A
YARRAM $443,210 $306,029.00
PORTLAND $449,102 $339,028.00
MOYNE – EAST $459,863 N/A
CORANGAMITE – SOUTH $489,394 $419,347
BAIRNSDALE $502,813 $367,490
LAKES ENTRANCE $556,134 $425,591
FOSTER $565,597 $395,198
