A backpacker hostel in Byron Bay's main street has sold for a reported $18.55 million to a Sydney developer.
The Holiday Village Backpackers at 116 Jonson St, next door to the new Mercato complex was purchased by Podia, who plan to redevelop the 4282 sq m site.
Head of development at Podia, Michael Grassi told the AFR: "There's an affordability crisis for locals and hopefully whatever we do with the site will alleviate some of that pressure."
The site had been used as backpacker accommodation for the past 37 years.
It was was sold by JLL Hotels and Hospitality Group.
The site is the latest to be earmarked for development at the southern end of Jonson St, an area which is undergoing a massive transformation.
The new Mercato complex has paved the way for a series of new developments, including the new Jonson Lane residential/retail precinct opposite the Byron Bay Butter Factory Apartments, which is expected to be completed by the end of the year.
Plans for a new mixed retail/residential development at 90-96 Jonson St - the old Woolworths plaza site and carpark are also about to be lodged. Planners North are currently undertaking a community consultation process prior to lodging a DA.