Top 5 suburbs in Sydney & Melbourne where owners just won’t sell
Dec 06, 2019
Whether prestige or blue-collar areas, there are some suburbs where owners just don’t want to let go of their prized possessions.
Many of them are run-of-the-mill family homes in suburbia while others are palatial estates in grand surrounds, but the one thing they have in common are holding periods well over 20 years.
RiskWise Property Research CEO Doron Peleg said during the recent property downturn there was a significant material reduction in the number of transactions and, consequently, on average, holding periods went up.
“But, in addition, there is a continuous trend for people to hold on to their properties longer,” Mr Peleg said.
“It is well demonstrated that the long-term approach is very effective and with transaction costs being extremely high, this provides negative incentive for homeowners.
“A couple of other reasons not to sell are that the primary place of residence is not subject to land tax and in most cases is also below the means testing threshold for retirees.”
He said with huge population growth in both Sydney and Melbourne, and systematic undersupply of family-suitable properties, it was “very likely” holding periods would only increase as long-term price growth was evident.
And values most certainly seem to be improving with Sydney prices rising by 2.7 per cent in November and 2.2 per cent in Melbourne. The national property index has also recorded its fifth consecutive monthly increase, the most recent the largest rise in more than 16 years, according to CoreLogic figures.
Miller is 38km southwest of the Sydney central business district witha population of 3,237 according to the 2016 ABS Census. This older residential suburb has a median house price of $519,068 compared to that of Greater Sydney of $877,220. There are a number of major infrastructure projects under way in the region including the Western Sydney Airport set to open in 2026, the 10-year Western Sydney Infrastructure Plan and the new M12 Motorway.
Upmarket Rossmore is a short drive west of Miller. According to the 2016 ABS Census, 45 per cent of houses, with a median price of more than $2 million, are owned outright and close to 20 per cent were owned with a mortgage. Many of the properties are on acreage and there are also a number of heritage-listed sites.
Wallacia, onthe 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 Sydney CBD and has a median house price of $714,999. Situated in the city’s middle ring, it offers good public transport and a convenient lifestyle. While many of its homes are older style, there are also newer prestige ones throughout the suburb.
Sadlier sits adjacent to Miller and is enjoying the benefits from the same infrastructure boom in the South West. This blue-collar suburb has a median house price of $517,054.
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 and conveniently close to all amenities. Many of its properties are prestige houses on large blocks.
About 25km southeast of Melbourne is Noble Park North which has 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 north of the city 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 of Melbourne 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 which thrives in the suburb.
The last to make the Top 5 list is Vermont South which is 20km east of the city and has a median house price of $1.1 million. It is well serviced by public transport, shops and parks.
“Obviously, the greater the holding periodin strong markets, the greater the equity people have,” Mr Peleg said.
“So, with property prices making a strong comeback, ultra-low interest rates, a more relaxed lending environment and auction clearance rates sitting above 70 per cent, it pays owners to sit back and see what happens.
“Victoria, which has the highest population growth across Australia, and NSW, which also has good population growth, are displaying strong economic fundamentals, solid economies and healthy job markets.
“Their economies have delivered and are projected to deliver solid economic growth. Government spending is high, and these states also attracted a consistent level of private capital expenditure which has contributed to their stability,” he said.