Catherine Hill Bay named one of Australia's top growth regional coastal suburbs

The beachside village of Catherine Hill Bay has emerged as one of the top-growth regional coastal suburbs in Australia, with the suburb's median value recording an increase of $384,000 in the past 12 months.

Property sales data from Ray White released this week revealed the biggest growth and decline in regional coastal towns across Australia over the past year.

While Byron Bay was a noticeable absence from both lists, lesser-known coastal areas were leading the charge with buyers.

Catherine Hill Bay placed eighth on a list of 10 coastal regional suburbs that have increased in popularity with buyers looking to live closer to the coastline.

It is placed just behind areas such as Shoreham in Victoria, Shelly Beach on the Sunshine Coast and Monee Beach on the Mid-North Coast.

Homes in Catherine Hill Bay hold a median value of $1.475 million, up from $1.127 million one year ago, according to the Ray White report.

Ray White Swansea selling agent Troy McLennan said that sales in Catherine Hill Bay took off during the pandemic when Sydneysiders fled the city and headed north.

"It had one of the largest growth that we've seen anywhere through COVID and that was really because so many people out of Sydney were migrating to Catho," Mr McLennan said.

"It was literally their escape and they basically bought an office in Catho to work from."

He estimated that around 90 per cent of buyers during that period were from Sydney, citing the suburb's "holiday-like" feel and close proximity to the freeway as the appealing factors.

Prior to the onset of the pandemic, Mr McLennan said properties priced under $1 million were struggling to sell.

"A couple of our properties were struggling to sell at $800,000 to $900,000 pre-pandemic and then through that boom we got $1.8 million for the same property not even six months later," he said.

He said that the majority of Sydneysiders who purchased a home in Catherine Hill Bay have moved back to the city and now rent out their property.

The median weekly rental in Catherine Hill Bay is $860.

Mr McLennan said retirees account for the latest wave of buyers keeping prices high in the suburb which has undergone major development in recent years.

"Now it is that transition away from Sydney buyers and it's that future retiree, so a lot of people are now buying them and putting a tenant in and they will be moving in to retire in five years' time in Catho.

"That's the new market that's coming through."

Ray White data analyst William Clark said that top price growth in coastal areas has been seen at a range of locations and in both luxury and medium-affordability markets.

"While the heady growth in Byron Bay, attributed to the 'Chris Hemsworth effect' appears to be a thing of the past, we see growth in coastal regions all over Australia is far from gone," Mr Clark said.

"In recent years, Australia's beachside suburbs have experienced remarkable price growth, presenting a fascinating trend in the real estate market.

"Australia has an estimated 85 per cent of its residents living within 50km of the coast, and as the pandemic created a new digital workforce, residents in coastal cities moved to beachside towns."

Meanwhile, coastal suburbs that recorded the largest price falls included Western Australia's Eagle Bay and Sunshine Beach on the Sunshine Coast with drops of $700,000.

On the Central Coast, house values in Pearl Beach fell $639,000 to a median price of $1.8 million.

Shoreham (VIC) - Median price up $905,000

Cape Schanck (VIC) - up $857,500

Dicky Beach (QLD) - up $412,500

Mossy Point (NSW) - up $400,000

Middleton Beach (WA) - up $385,000

Shelly Beach (QLD) - up $372,125

Mooney Beach (NSW) - up $355,000

Catherine Hill Bay (NSW) - up $348,000

Pambula Beach (NSW) -up $320,000

Noosa Heads (QLD) - up $290,000

Source: Ray White; CoreLogic

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