Australia’s ghost town suburbs where most properties have nobody living in them

The majority of properties in some in-demand rural postcodes sit empty, held onto as holiday house, while the rental crisis rolls on.

An exodus to the water and the countryside during the pandemic led to a holiday home-buying boom, but at times up to two-thirds of addresses in these suburbs away from the big smoke have languished with nobody living in them.

A real estate and economics expert predicts tougher caveats from local councils on how many holiday properties can be purchased in an area, as well as rules around usage, following a decision to impose limitations on owners of short-term rental accommodation in Western Australia.

The rush of buyers pursuing a better lifestyle during COVID has caused large portions of homes in regional zones to idle without occupants. At the same time, a rental shortage is gripping the broader market, with the national number of listings for lease recently falling to a record low.

Australia has 1.04 million unoccupied homes, according to the latest census data.

In its weekly economic report, Ray White Group crunched the occupancy rate in regional postcodes, with Victoria’s Sandy Point, near Wilsons Promontory in south Gippsland, topping the list for country areas, with almost 75 per cent of homes empty on census night.

Beach postcodes that are traditionally summer holiday playgrounds also dominate the list of metro postcodes with huge percentages of properties unoccupied. Eight of the top ten suburbs are on Victoria’s Mornington Peninsula.

The peninsula has been a popular getaway destination for generations, and although it is considered part of metropolitan Victoria, it is 100km from the Melbourne’s CBD and has the hallmarks of a weekender or holiday house market.

Portsea – a well-do-do postcode with estates on the water – is top ranked, with almost two-thirds of homes empty when the census was taken.

“Holiday homes were hot property during the pandemic, fueled by an inability to travel internationally, high savings rates and very low mortgage rates,” Ray White economist Nerida Conisbee said in the report.

“This, however, has become a problem now where we are seeing a shortage of rental properties as a result. In the most recent census, there were 1.04 million homes unoccupied, or around 10 per cent of all Australian homes. Putting at least some of these homes on to the rental market would calm the high levels of rental growth that is currently occurring.”

Ray White found that number of empty homes was likely higher in Victoria because extended lockdowns put restrictions on movement between properties.

“Nevertheless, Sandy Point tops the list as having the most vacant homes reflecting a high number of holiday homes in this suburb,” Ms Conisbee said.

“Coming in second was Carrickalinga, another popular holiday destination in South Australia. Third was Smiths Beach, also in regional Victoria.

“In our capital cities, a similar trend is evident.