Melbourne suburbs hailed as ‘NIMBY paradise’ revealed

The areas of Melbourne that have been dubbed a NIMBY’s paradise have been revealed, recording fewer than 20 new home approvals in the past two years. SEE THE LIST

Nathan Mawby

@mrmawby

3 min read

April 26, 2025 - 5:01AM

Homes in suburbs like Olinda have been labelled a NIMBY’s paradise.

Melbourne’s outer east has been revealed as a NIMBY’s paradise, with a handful of areas recording fewer than 20 new home approvals in the past two years.

From The Basin and Montrose to Rowville and Frankston, there has been a less than 1 per cent increase in the supply of new homes since 2023.

A report by MCG Quantity Surveyors has dubbed the locations as among the city’s ‘Not In My Back Yard’ (NIMBY) hot spots, and those potentially needing urgent intervention to ensure more homes get built there.

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However, industry experts have warned there could be deeper issues with building costs, insurance availability and other market forces that could mean they are never developed.

MCG managing director Mike Mortlock said areas with restrictive zoning, strong heritage overlays, or vocal local councils can often serve as a “NIMBY’s paradise”.

“These are the suburbs where new development is tightly controlled, and the existing character of the area is fiercely protected,” Mr Mortlock said.

“If you’re someone who values predictability in your streetscape and doesn’t want a mid-rise apartment block popping up next door, these locations offer a kind of residential preservation.”

Rowville came in the top 10 of Victoria’s NIMBY hotspots.

However, he said these home protections could also lead to housing undersupply — meaning stability for existing residents could arguably come at “the cost of broader housing affordability”.

“The reality is we’re grappling with a tangled web of issues — sluggish planning systems, tax burdens that inflate the cost of new housing, and a reluctance to acknowledge that a healthy rental market, supported by balanced policies for landlords, is a critical part of the solution,” Mr Mortlock said.

Urban Development Institute of Australia Victorian chief executive Linda Allison said topography and building costs could be preventing development in many of the areas, with steep inclines in the Dandenong’s difficult to build on.

With developing in Melbourne at the moment already “very difficult” due to the economics behind building, Ms Allison said “market forces” were likely having a significant impact on where developers were actively looking to create more homes.

MCG managing director Mike Mortlock said areas with restrictive zoning, strong heritage overlay can serve as a “NIMBY’s paradise”

“It’s good to have clear directions of where the government thinks the future of development should be, and they are very centred on train stations — which are good places for people to live and work close by,” Ms Allison said.

Yes In My Back Yard (YIMBY) lead organiser Jonathan O’Brien said in some of the areas that fire danger could also be a factor.

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If that was the case, there might be an argument more homes should not be permitted there as it could lead to extra government costs for evacuations and protecting homes in emergencies.

However, Mr O’Brien said across wider Melbourne more areas should be freed up for development so homebuyers could “vote with their feet” on where they wanted to live.

Montrose, which came in third on the list, has a typical home price of around $930,000.

“The reality is there’s two forms of NIMBY: the older, richer people who are turning up to council meetings and saying no; and the planning rules and regulations,” Mr O’Brien said.

“We have a lot of areas where people would like to build townhouses so they can age in place, but they legally can’t do it.”

Mr Mortlock said those hoping to “avoid the symphony of jackhammers and the parade of tradies’ utes” should seek out low-density zoning such as residential overlays, or regions covered by heritage protections and conservation areas that were “red flags” for development.

“So if you’re hunting for serenity, look for suburbs with restrictive planning overlays, a vocal resident base, and a local council that’s more clipboard than bulldozer,” he said.

Frankston North was also a surprise entry on the list for NIMBY hotspots around Melbourne.

In The Basin, LOCI Real Estate director Michael Hill said there were pockets where council rules would be hampering development in favour of preserving neighbourhood character — and that appealed to many buyers.

“We are getting quite a few people moving from Hawthorn and Camberwell to The Basin for a tree change,” Mr Hill said.

“So there would be a market for more homes.”