Australia's most expensive suburb is not in Sydney or Melbourne

A small easy, breezy town on the east coast has become Australia's most expensive place to buy a home.

New research by Propertyology has identified the top 40 most expensive cities by median house price and Byron Bay has come out on top.

With a population of just 34,500 people and a median house price of $987,500, the coastal town has surpassed Sydney and Melbourne.