PHOTO: Byron’s median house price has risen by a whopping 10.1 per cent over the past two decades

Sydney has lost its status as the country’s most expensive city by home value as a chill sweeps and spreads across the national property market.

New research by Propertyology has revealed the top 40 cities by median house price, and Sydney has been relegated to second place.

In the number one spot is a city 760km to the north, with a population of just 34,000: Byron Bay.

According to Propertyology head of research Simon Pressley, the country’s most valuable real estate is in a city that ranks 73rd in population size but has a median house price of $987,500 as at December 2018.

“Byron’s median house price increased by a whopping 64 per cent over the past five calendar years, propelling it to the top of the national table,” he said.

“Sydney and Melbourne both produced a 44 per cent increase over the same five years to be $950,000 and $772,500, respectively.”