For daydreamers looking at popular Byron Bay's exploding property market and wishing they'd bought in the sleepy seaside village a decade or so ago, experts say it's possible to sniff out future beach hotspots before they boom.

Long before the Hemsworths arrived and back when hordes of Instagram influencers wouldn't have looked twice as it, Byron was a hippie enclave famed for its chilled vibe.

But the picturesque pocket of northern New South Wales has evolved – whether locals like it or not.

Byron Bay has seen huge growth in the past few decades. Picture: Getty

---

Now, along with the Range Rovers, high-priced restaurants and bars, and uber cool social scene has come sky high property prices, skyrocketing rents, and a shortage of homes.

The current median price for all dwelling types in Byron Bay is $1.72 million, up 77% over a five-year period, while for houses the median house price has surged by 107% in five years to hit $3 million.

Right now, a three-bedroom house at 34 Parrot Tree Place in Bangalow has price hopes of $1.27 million to $1.37 million. It last sold 10 years ago for just $263,000.

And a three-bedroom unit at 6/37-39 Bottlebrush Crescent in Suffolk Park is currently listed for between $995,000 and $1.05 million, when back in 2010 it sold for $455,000.

Finding a cheap seaside location that could be a future Byron Bay is the goal of many... but was it a one-off? Is it even possible for another Byron to materialise?

Senior PropTrack economist Paul Ryan said he thinks more Byron Bays will appear as demand for coastal towns continues to be strong.

"The fibro beach shack is growing up and there's more demand for luxury coastal locations, so I wouldn't be surprised if other locations like Byron come up," Mr Ryan said.

"However, I think it's really tricky to predict where these are going to be."

What makes a popular coastal town?

Generally, climate is the massive factor at play when it comes to coastal enclaves that take off. Byron Bay's weather is hot to mild year-round, which appeals to many Aussies chasing the sun.

Commutability is also a factor that impacts the popularity of a coastal town.

Being close to a major city and airport is a massive drawcard. Byron is 45 minutes to Gold Coast Airport and just 20 minutes to Ballina Airport, making Sydney a breezy 75-minute flight away.

Byron Bay has top amenities and has access to two airports. Picture: Getty

---

It also has a variety of amenities including top restaurants, cafes, sports facilities, and supermarkets, meaning there are good employment opportunities for locals.

Following the 'cool crowd'

When it comes to spotting the next Byron Bay, Mr Ryan said it's more about following trends and keeping in the know about where the 'cool kids' are moving to.

"It can be a bit random, it's more about the vibe, and keeping an eye on where cool and trendy people are going," he said.

"That then brings interesting cafes and stores and things like that, which then brings more people and this then takes on a life of its own."

Follow the lead from young trendy renters and buyers who often find the new 'it' spot before anyone else. Picture: Getty Images

---

Mr Ryan said that with Byron Bay housing pricing out many young locals, it's inevitable for a new 'IT' spot to evolve where housing prices are more affordable.

"This first round of 'cool people' who make their way into a town don't necessarily have a lot of money, but they start the trend.

"The same thing happens in trendy parts of the city. Students and young people move to certain pockets and make it popular like Brunswick in Melbourne and Newtown in Sydney."

Could these be a future Byron Bay?

Buyers advocate Cate Bakos identified the following towns as potential future coastal hotspots, with the right ingredients to be the next Byron Bay.

Bowen, Queensland

"Home to the big mango, but more importantly, a large coastal city on a peninsula in the Whitsunday Shire, Bowen has eight beautiful beaches and offers superb warm tropical weather," Ms Bakos said.

"Despite its strong ties to coal mining, it does have other industry, including an airport. I feel the beautiful beaches on offer and the existing amenity could give Bowen increased visitor status."

Merimbula, NSW

"Merimbula is a cooler coastal town than its sunny Queensland counterparts, but nevertheless, a warm escape for Victorians and an easy drive south for Sydneysiders," Ms Bakos said.

"Merimbula is beautiful and relaxed, also has an airport, and is a gateway for other superb destinations such as Bega, Pambula and inland Eden."

Buyer's advocate Cate Bakos recommends Coles Bay as a potential next Byron Bay. Picture: Getty

---

There are a number of drawcards, she added, including music festivals, fishing, sporting events, including windsurfing and kiteboarding, several orchid shows and whale watching.

Coles Bay, Tasmania

"This amazing bay is home to plenty of little sleepy little coastal towns, and the Freycinet region is a must-visit for any visitor to the apple isle," Ms Bakos said.

"It's one of the prettiest bays on offer in Tasmania and is surrounded by quality vineyards and has a nice mix of accommodation places to stay.

"Tasmania has drawn visitors for a long while, but it’s quickly becoming a food and wine destination and the cool climate isn’t putting tourists off.

"Coles Bay offers something different to the well-known must-see places in Tasmania and is one for those who enjoy their wine and tranquil stays to note."