Astronomical vacancy rates have catapulted two Great Ocean Road holiday spots into Australia’s top 10 regions for unoccupied dwellings.
New analysis from Ray White reveals the Lorne-Anglesea district has the third highest unoccupied rate in the nation at 56 per cent.
The Otway region, which includes Apollo Bay, Forrest and Lavers Hill, ranked seventh with half of all dwellings sitting empty.
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5 Hall St, Lorne, is on the market for $3.92m to $4.3m.
While Ray White found the national unoccupied dwelling rate sits at 10.1 per cent, the figure was much higher in many regional areas.
Victoria claimed four of the top 10 spots, with premium holiday spots Point Nepean, which includes Sorrento and Portsea, and Phillip Island also making the list.
Great Ocean Road Real Estate put the vacancy figure even higher in the Lorne township, where just 31 per cent of dwellings were occupied on the last census night.
Aireys Inlet director James Worssam said more houses had been put up for sale amid steep land tax bills, but so far it hadn’t resulted in more permanent residents or a boost to long-term rental stock.
He said holiday home owners were instead looking to the short-stay accommodation market to recoup their costs.
This successful Airbnb at 7 Blundy St, Forrest, has a $750,000 to $800,000 price guide.
Holiday home buyers are the biggest market for properties like this one at 12 Holliday Rd, Lorne, listed for $1.845m.
“Everything has gone up, their rates have gone up because the values of their properties have gone up, the insurance on the house has gone up because there’s bushfires and floods everywhere,” Mr Worssam said.
“For a lot of people here it can cost them between $10,000 and $20,000 for the luxury of a holiday house and if you’re a self-funded retiree that’s a lot of money.
“Some people say it’s a good problem to have but the reality is it exists and a lot of people are converting their houses to holiday rentals to try and offset some of that.”
He said long-term private rentals remained scarce along the Surf Coast, with none currently available on his company’s rent roll between Anglesea and Lorne.
With a median house price of $1.57m, the Lorne-Anglesea area does not attract typically investors seeking strong returns.
Ray White head of research Vanessa Rader.
Ray White head of research Vanessa Rader said while the region’s 3.8 per cent annual price growth was better than the regional Victorian average, it was far less than other markets around the country.
And, with a premium price tag, sellers were competing for a much smaller buyer pool.
“Established premium markets like Lorne-Anglesea show how tourism success doesn’t automatically translate to sustained appreciation,” Ms Rader said.
“These location may have reached value ceilings where growth depends on broader economic factors rather than tourism demand.”
She said Victoria’s land tax and skyrocketing insurance premiums in the wake of fire and floods were front of mind for holiday home buyers, particularly in coastal locations.
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