Australia’s Most Tightly Held Suburbs and Melbourne’s Rising Property Appeal

Australia’s property landscape is undergoing significant changes, with homeowners holding onto their properties longer than ever and Melbourne being named as the “number one pick” for property investors.

According to a recent analysis of PropTrack data by Daniel Butkovich, homeowners are retaining their properties for an average of 11 years at the national level, a duration that has seen an increase of 23% over the past decade1. In certain suburbs, the average holding period is more than double the national average. Such suburbs offer residents a variety of amenities, from schools and shops to parks and excellent transport networks. As PropTrack economist Anne Flaherty points out, these suburbs “tend to have excellent amenity… Many also benefit from being well serviced by road and rail networks which enable access to cities and employment hubs”.

Australia’s most tightly held suburb is Clarinda, in Melbourne’s southeast, where properties are held for an astounding average of 24 years. Local real estate agent Peter Laspas of Buxton Oakleigh highlights the area’s appeal, stating, “It’s such a convenient area… It’s a very good area to raise a family”.

On the investment front, Melbourne has been identified as the “number one pick” for property investors2. Despite concerns raised by some about the local government’s approach to property, real estate expert Terry Ryder believes Melbourne’s market is showing impressive buoyancy with strong prospects for capital growth. Ryder notes a “big shift” in sentiment as reduced affordability and changing lifestyle demands push more investors towards apartments over homes.

Ryder’s Hotspotting report reveals that the city’s next home price upswing is underway, with a significant rise in suburbs showing consistent sales volume growth. Furthermore, he identifies Melbourne, Hume, Monash, Melton, and Whitehorse as key “hot spots” for property investment.

However, concerns linger, especially with potential increases in land taxes. Lux Buyers Agents director Rob Panetta advises property investors to explore opportunities interstate, citing Melbourne’s high median home prices as a deterrent. Yet, Panetta also identifies several suburbs in Melbourne, such as Coburg North and Pascoe Vale South, as affordable options with potential for growth.

In conclusion, while homeowners in Australia are increasingly seeing the value in holding onto their properties, Melbourne’s appeal as an investment hotspot continues to grow. As the dynamics of the property market shift, both homeowners and investors will need to stay informed and adaptive to the changing landscape.

References:

“Australia’s most tightly held suburbs: Where people buy and never want to leave” by Daniel Butkovich https://www.realestate.com.au/news/australias-most-tightly-held-suburbs-where-people-buy-and-never-want-to-leave/ 

“Property investing: Melbourne named the “number one pick” for property investors — Hotspotting” by Sarah Petty https://www.realestate.com.au/news/property-investing-melbourne-named-the-number-one-pick-for-property-investors-hotspotting/