4 blissful Byron Bay accommodation business opportunities

Byron Bay has experienced a mixed start to the year but there’s still a strong appetite for luxury accommodation opportunities, according to local tourism experts.

This appetite is only expected to increase now that Queensland borders have opened.

Properties such as Yarraga Homestead at Federal , 25km west of Byron Bay, is one of several accommodation and lifestyle properties in the area attracting plenty of interest.

The 34ha site features a 1907-built four-bedroom home and a charming two-level, one-bedroom cottage set amidst stunning gardens.

While it has only seen a few wedding events in the four years since the current owners have lived there, the property has previously attracted $250,000-$300,000 per year in passive income from accommodation stays, according to First National Byron sales agent Denzil Lloyd.

As well, an income-producing macadamia orchard returns $100,000 in annual income.

Buyers go nuts for luxury lifestyle property

Mr Lloyd said a range of people from local couples to interstate buyers were interested in Yarraga Homestead, with the majority being owner-occupiers rather than investors.

A front portico at Yarraga Homestead features a grand chandelier and timber fretwork. Picture: First National Byron Bay

Several international buyers, including some high-end, high-profile celebrities, are also keen to follow in the paths of Chris Hemsworth and fitness queen Lorna Jane Clarkson and splash their cash in the town known as Australia’s mini Hollywood.

The latter bought an impressive homestead estate, which can be seen from Yarraga, from First National Byron Bay for $14 million last year.

Mr Lloyd explained these potential buyers were particularly interested in Yarraga’s absolute privacy.

“The interest is coming from people looking for a substantial country estate that does have a passive income but also offers beautiful gardens and privacy,” he said.

“There are not many properties of this calibre available and it certainly took my breath away the first time I saw it.”

Yarraga’s entire estate could be enjoyed as a residential property, however the new owners could utilise just the cottage for guest accommodation, Mr Lloyd said.

“The current owners haven’t Airbnb-ed the property at all but the previous owners did and generated a substantial income capacity, using Luxico as a luxury holiday letting manager,” he explained.

“And the current owners have done a couple of weddings here so the property has the opportunity to be used in that capacity as well and with a wedding venue like this, you can charge a lot for these events.”

Mr Lloyd added that the new owners could also just enjoy income from the macadamia orchard.

“It has been income producing for over a decade with the trees now at full maturity,” he said.

“The care of it – including the harvesting, collection and distribution – is outsourced to contractors including an agronomist.

“But the big thing about a property like this is that you have a constant income from the macadamias and that can continue regardless of what’s happening with COVID.”

Artistic farm stay opportunity appeals

While it doesn’t have a macadamia orchard, Tooraloo Farmstay at Ewingsdale, 7km west of Byron Bay, does have a wealth of current and future business income opportunities.

Tooraloo Farmstay comes with five separate guest accommodation buildings including a farmhouse, barn, cottage, shed and villa. Picture: Byron Bay Property Sales

The boutique property features five separate guest accommodation buildings – with one an early 1900s residence – as well as Byron Shire Council development approvals to operate and build a licensed cafe on the 4.86ha block.

Ku Darroch from Byron Bay Property Sales is the most recent marketing agent for the property after an unsuccessful nine months with several other agencies.

He said the DAs had appealed to several local business owners keen to expand their income further.

“I’m not surprised by this as it’s hard to get zonings through these days and this place has got it all,” he said.

“There are also some people who want the property for their extended family and who would like to buy it as a family compound.

“We’ve seen a lot of these types of buyers in the past year.”

Currently enjoying a six-figure annual income, the former dairy farm was virtually created from scratch 10 years ago, Mr Darroch explained.

“The owner Concetta Antico is quite a famous artist and she is passionate about what she created here,” he said.

“It’s a stunningly gorgeous property and built to the highest standard with many materials imported from Europe but it’s not a high maintenance place either.”

New year starts with cautious optimism 

While COVID restrictions and regulations haven’t doused Tooraloo’s popularity with the estate completely booked out this month, Byron Bay overall has experienced a much quieter January than normal.

Relax by the resort-style pool at The Sunseeker Byron Bay

Destination Byron president Mick Webb said January was usually a “gangbuster” time for the town but this hadn’t been the case either this year or last year.

“It’s definitely not all doom and gloom but it’s a very different January for a lot of operators,” he said.

However, Mr Webb said interest in accommodation properties was still strong.

“I’ve seen some new places open in the last little while and I hear they’re doing really well,” he said.

“I don’t see this appetite waning anytime soon either but then again, I don’t have a crystal ball.”

Mr Webb said Byron Bay was lucky in that it would almost always attract visitors and not have to scramble for them.

“I have a lot to do with other local government areas (LGAs) around New South Wales and I think we’re very fortunate in this shire because there’s always going to be people that want to come and stay here,” he said.

With Queenslander borders open again after almost two years of strict COVID lockdowns, Mr Webb is hopeful that better days are coming to Byron Bay’s tourism and accommodation sectors.

“We will hopefully ramp up again thanks to daytrippers and the overnight domestic business, which hasn’t been as prevalent because of the closed border,” he said.

Four potential accommodation businesses in Byron Bay

Local experts agree there’s never been a bigger interest in the area’s larger, potentially income-driving, properties. Here are four of the best:

1. Yarraga Homestead, Federal

Originally built in Coraki, an hour south of Byron Bay, Yarraga Homestead was relocated to Federal in 1994 and has since been beautifully renovated.

The four-bedroom main residence features wraparound verandahs, 4m ceilings, stained glass windows and hardwood floors along with a portico, wisteria-covered pergola and pool.

Yarraga Homestead’s charming one-bedroom cottage features dormer windows, a mezzanine area and a wood-burning fireplace. Picture: First National Byron Bay

That’s not forgetting the cute cottage with its dormer windows, mezzanine area and wood-burning fireplace.

But the standout feature is the leafy gardens which include 4km of walking tracks, roses, scented topiary and oriental bamboo areas, and ponds, all with views of the mountains and sea.

Yarraga Homestead is for sale via private treaty with a price guide of $12 million.

2. Toolaroo Farmstay

Set on 1.8ha, Tooraloo Farmstay features five separate and very different guest accommodation houses, including the main Federation-style farmhouse plus a barn, cottage, shed and villa.

Tooraloo Farmstay has been lovingly restored and renovated. Picture: Byron Bay Property Sales

As well as the new and renovated buildings, the chic bespoke estate comes with a pool, citrus orchards, rose gardens, cabana, a wet bar, barbecue hut, firepit and a vintage tea house.

The pet-friendly property also boasts stables, cattle yards, paddocks, dams and a chicken coop along with cats, dogs, cows and a miniature horse known as Choccy.

Tooraloo Farmstay is for sale via private treaty with a price guide of $8 million-$8.5 million.

3. The Sunseeker, Byron Bay

Just a year old, The Sunseeker Byron Bay was the only Australian hotel to be included in Condé Nast Traveller’s 2021 Hot List featuring the best new hotel and industry openings worldwide.

The Sunseeker Byron Bay has been transformed from a 1980’s motel to a chic new hotel with 12 guest rooms and nine self-contained bungalows. Picture: CBRE Hotels

Set on 6337sqm with the potential to develop an adjacent 1250sqm vacant block, the revamped 1980s motel boasts 12 guest rooms and nine self-contained bungalows plus a three-bedroom residence and caretaker studio apartment.

There’s also a heated pool with a tiki bar and cabana area as well as a fire pit.

The Sunseeker is being sold via tender or offers to purchase, for offers above $16 million.

4. Cove Studios, Byron Bay

This seven-bedroom, six-bathroom bed and breakfast accommodation enjoys dual street frontage on a 1012sqm site, just 200m from Belongil Beach.

The Cove features a seven-bedroom, six-bathroom guest accommodation 200m from Belongil Beach. Picture: First National Byron Bay

Wraparound decks separating the luxurious suites also overlook a resort-style pool.

The buyers can choose from enjoying the entire setting as a residential home for themselves or several family members, or offering part of it as commercial accommodation.

There is also the possibility of building and developing the property further thanks to the rezoning of the property to allow for multi-dwelling, multi-level housing.

Cove Studios is for sale via private treaty.