‘A different mindset’: The Melbourne suburbs that people don’t want to leave

Scarcity, proximity to public transport, tight-knit neighbourhoods and lifestyle are the factors behind Melbourne’s most tightly held suburbs.

New CoreLogic data of postcodes with the lowest property turnover shows the suburbs are a broad mix of inner-city, suburban, tree-change and beachside areas that – for various reasons – home owners are loath to leave.

Two city-centre suburbs head the list for houses. Melbourne and Southbank had turnover rates of just 1.1 per cent and 1.5 per cent in the past year to July, which experts attribute to the very low number of standalone houses left in those suburbs. That’s about a quarter of the turnover rate across Melbourne generally, where 4.1 per cent of houses sold in the same period.

The inner-city locations were followed by Clarinda in the south-east and Selby on the city’s far-eastern fringe, which both had just 1.8 per cent of their properties sell in the same period.

For units, Flemington had the lowest turnover at 1.8 per cent, followed by West Melbourne and Parkville at 2.2 per cent and 2.3 per cent, respectively.

“There’s quite a diverse selection, but one thing that didn’t surprise me is the popularity of Melbourne and Southbank,” CoreLogic economist Kaitlyn Ezzy said. “There are few houses, so the people who have them hold on to them.

“Similarly with units, there’s a lot of connectivity. People can just hop on a tram and they’re in the city, so there’s a lifestyle [benefit].”

There was a range of reasons for further-flung suburbs recording the lowest turnover rates in Melbourne, Ezzy said. “Some of that is down to lifestyle factors, maybe people settling in and raising a family,” she said. “It’s hard to understand the motivations of the individual home owners.”

Out in Selby, a small locale near Gembrook, it is an easy question to answer. Resident Angelina Morino said she came to the neighbourhood from the city seeking peace and quiet, but stayed because of the tight community.

“It just got to a point where we were fighting over parking for people out the front of our own house, getting fines … the energy’s just different. It’s a pretty special place,” she said.

Angelina Morino, with husband Beau, son Remi and dog Maple, said her family had loved living in the area since moving in 2017. Credit: Jason South

“The community is amazing, it really is like ... not everyone knows everyone to the degree you want people out of your space, but everybody is quite respectful.

“There’s a lady who delivers eggs to a lot of people ... you know how everyone says no one knows their neighbours any more? That’s not the case here.”

Not many properties come up for sale in Selby, which contributes to the low turnover rate. Morino owns one of the few available to buy – a renovated general store, which features a commercial kitchen and has a living space at the rear. Her family had planned to run a café from the building, but that dream was put on hold due to her and her sister’s pregnancies.

“I thought I could run a café and a store while I’m pregnant … we just kind of figured it wasn’t the right time for it,” she said. But the family will stay in the neighbourhood.

Their selling agent, Mick Dolphin, of First National Ranges, said home owners in the area were not as interested in trying to trade up to a more expensive home.

“I think the keeping up with the Joneses thing is about buying the best house I can and having a big pool … it’s not about that. It’s about living your life and enjoying your life. It’s a different mindset altogether.

“Every house is a bit more unique up here, they’re not cookie-cutter. So when they find the one they love, they stay because they know there’s not another one like this.”

Ezzy said a low turnover rate benefited existing home owners.

“That does skew competition in favour of the seller. Because there’s not a lot of competition, that means a seller can sit back and let buyers bid it out,” she said. “In these places where people stay put for a long time, they’re looking to see a significant rise in nominal value over that time.”

In Clarinda, a quirk of the suburb’s history was contributing to the low turnover rate, Buxton agent Peter Laspas said.

“There are a couple of reasons why, obviously being a very small suburb and a newer suburb compared to some of the other ones,” he said. “The majority of the suburb is about 40 years old, and a lot of people bought them off the plan in the 80s.”

Laspas said the blocks were small, low-maintenance and the houses single-level, which meant older residents had little reason to downsize.

“The kids have moved out, but they have all the amenities around them, so the shops, the doctors, the hospitals,” he said.