A Queensland suburb has been crowned the best beach in the world, but home values are a fraction of those in southern capitals and coastal hotspots, with one listed for just $650,000.

Every year Condé Nast Traveler ranks beaches from around the world to curate a list of 34 locations.

Palm Cove in Far North Queensland took out the top spot globally, described as “the epitome of a tropical paradise” by the publication. Just north of Cairns, author Lizzie Pook praised the leaning palms on powdery sands, the lack of crowds and the wildlife.

Palm Cove beat Honopu Beach, Kauai, Hawaii (2nd), Brekon, Shetland (3rd), Wategos Beach, NSW (4th) and Ora Beach, Indonesia (5th) to take the top spot.

Other Aussie beaches that also made the coveted list were Mona Vale Beach (6th), Noosa Beach (8th), Turquoise Bay (22nd) and Gantheaume Point (25) in Western Australia.

But it might surprise beach fans just how much it might cost to buy a piece of prime real estate in Palm Cove. The latest REA Market Trends report shows the median house price in the tourist gem is $1.11 million, while for units it is just $451,250.

The median rental yields for houses is 3.65 per cent, while for units it is 5.42 per cent.

The median home price (houses and units combined) in Brisbane and Melbourne is now $797,00 – on par for the first time in 14 years.

The median dwelling value in Sydney is currently $1.053 million.

But real estate listings show that Palm Cove prices are still within reach of many buyers.

The lowest priced property currently on the market in Palm Cove is a one bedroom apartment in the Drift resort complex, which is listed for $235,000.

The most expensive property currently listed is a Balinese seaside villa for offers over $2.95 million.