Byron Bay V Bourke: A Tale Of Two Shires

Sun Herald

Sunday May 11, 2008

By Alex May

PASSION for property on the beach isn't the only thing that makes Byron Shire NSW's most expensive regional area. Its median house price of $529,000 has been driven up by the influx of people from Sydney, Melbourne and Brisbane buying lifestyle retreats, claim experts such as Macquarie Bank's head of property research, Rod Cornish.

Meanwhile in far-western NSW - where the beaches of Byron are a 980-kilometre drive away - a house can be snapped up for less than $100,000 in the colonial outback town of Bourke, known for its red dirt, outback flavour and dwindling population base.

Peter Whitbread, the principal of Bourke stock and station agents Peter Whitbread & Co, says top-end farming properties near Bourke fetch well over $1 million or between $30 and $40 a hectare.

"The population has declined out here," Whitbread says. "It's mostly people associated with agriculture/irrigation industry that have left over the past seven years. There's been no employment off that industry for a long time."

But there is no denying that Bourke has done it tough, with a small population base and not much industry to attract new residents to the region.

"When we had the population decline seven years ago, we saw a 20 to 25 per cent decrease in value because sales weren't happening," Whitbread says. "Now we are at the opposite end, with 20 per cent increases in property values driven by out-of-town investors."

Bourke's property price saviour has been interstate investors buying up affordable properties priced between $80,000 and $120,000 and renting them out for between $150 and $170 a week.

Over on the east coast in Byron Bay, prestige agents such as Frances O'Connor say the local real estate market has been driven up by out-of-town buyers who are prepared to spend big bucks to secure a prestige property on the far north coast.

"These are not baby boomers, but people in their late 20s and 30s who are buying their second home and spending millions on it," she says. "They are attracted to the capital growth that Byron offers and if they don't use the house all the time, they get excellent holiday rental returns of between $3000 and $12,000 a week."

Byron Bay First National principal Chris Hanley says two-thirds of Byron Shire property is sold to locals, with the rest sold to Sydney, Melbourne and Brisbane buyers.

"Whenever anything bad happens - Bali bombings, September 11 or a stockmarket crash - we get a run of people buying in Byron. For some reason, people see this as a safe haven," Hanley says.

"Buying in Byron is like buying into the eastern suburbs or north shore in Sydney," says RP Data-Rismark International's head of research Dr Matthew Hardman.

ON SALE IN BYRON BAY

Myocum, near Byron Bay

Broadhill, Dingo Lane

$6.5 milllion

In the hinterland above Byron Bay, this architect-designed house has a whopping 725 square metres of living space and sweeping views of the countryside. The house has three pavilions built around Japanese-style gardens and a swimming pool. With five bedrooms and four bathrooms, there is plenty of space for several families who may wish to use it as a retreat.

Agent Frances O'Connor Real Estate, 0412 522 540.

ON SALE IN BOURKE

Post office hotel,

Oxley Street

$200,000

THIS historic outback pub no longer has a licence but the property is for sale. It has 25 rooms, several bathrooms and the old bar is still intact. There is a ground-floor shopfront area that could be converted into a retail space with plenty of room to live upstairs. The current owners run a bed and breakfast establishment and a tai chi studio from the premises.

Agent Peter Whitbread & Co, (02) 6872 2766.

AT A GLANCE: BYRON BAY

* Where About 800 kilometres north of Sydney.

* Known for Sparkling beaches.

* Population (2006) 28,766.

* Median house price (2008) $529,000.

* Average growth over five years 11 per cent.

* No. of dwellings 13,564.

* Median weekly household income $738.

AT A GLANCE: BOURKE

* Where On the banks of the Darling River, about 800 kilometres north-west of Sydney.

* Known for The red dirt of outback NSW.

* Population (2006) 3095.

* Median house price (2008) $85,000.

* Average growth over five years 4 per cent.

* No. of dwellings 1436.

* Median weekly household income $821.

© 2008 Sun Herald

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