An investigation into the places in Sydney and Melbourne where people hold onto their properties for a long time has given new meaning to the meaning “exclusive suburb”.
RiskWise Property Research has found the five suburbs in both capitals where people hang onto their homes for at least 20 years and whether upmarket or The Castle in blue-collar city outskirts, they’re the hardest place to buy in.
RiskWise CEO Doron Peleg said there is a continuous trend for people to hold on to their properties longer, with high transaction costs acting as a negative incentive for homeowners.
Population growth and systematic undersupply of family-suitable properties, is also “very likely” to increase retention periods.
Here are the 10 “hen’s teeth” suburbs where people hold onto their homes.
Miller, 38km southwest of Sydney’s CBD had a population of 3,237 in the 2016 Census. The median house price is $519,068, around $350,000 less than the median price for Greater Sydney.
Not far west of Miller is upmarket Rossmore, where around 45% of houses, with a median price of more than $2 million, are owned outright and close to 20% owned with a mortgage. Many are on acreage and a number are heritage-listed sites.
Wallacia, on the Nepean River, is 68km from Sydney and offers a rural retreat from city life. With a median price of $656,173, it is characterised by prestige homes on acreage and older-style houses on smaller blocks.
Birrong is 22km southwest of the CBD, has a median house price of $714,999, and is good public transport and a convenient lifestyle. Many of the homes are older style.
Sadlier sits adjacent to Miller and is enjoying the benefits from the southwest infrastructure boom. The blue-collar suburb has a median house price of $517,054.
In Victoria, leafy Wheelers Hill is only 22km from the city and has a median house price of just over $1 million, compared to Greater Melbourne’s of $716,542. It is well serviced by public transport. Many of its properties are prestige houses on large blocks.
Noble Park North is 25km southeast of Melbourne, with a median house price of $585,413. It is close to major roads and other amenities, and characterised by older-style houses, many of them renovated.
Campbellfield is only 16km to the north and close to major roads and public transport options. Many of the houses, which have a median price of $476,458 are older-style renovated homes.
Oakleigh is 14km southeast and has its own historic CBD and high street. The median house price is more than $1 million, many owned by members of the strong Greek community.
The last to make the Top 5 list is Vermont South, 20km east of the city, which has a median house price of $1.1 million.
RiskWise Doron Peleg said that because people are holding onto their properties, they have greater equity.
“So, with property prices making a strong comeback, ultra-low interest rates, a more relaxed lending environment and auction clearance rates sitting above 70% it pays owners to sit back and see what happens,” he said