No one home: Top 10 regions for unoccupied dwellings revealed

Aerial view of Moreton Island in Queensland, which has a unoccupied dwelling rate of 66 per cent. The area is a popular holiday house destination. Source: Keiran Lusk

New research has revealed that the national unoccupied dwelling rate sits at 10.1 per cent, but it is much higher in some regional areas, exceeding 60 per cent.

Queensland holiday hot spot Moreton Island has the highest unoccupied rate in the nation at 66 per cent, according to Ray White head of research Vanessa Rader.

“These astronomical figures reveal the concentrated geography of Australia’s holiday home phenomenon and challenge fundamental assumptions about property investment returns,” Ms Rader said.

Vanessa Rader Head of Research Ray White Group Picture: Supplied

Using unoccupied housing data as a proxy for holiday home concentration, the research found that regional markets operated under entirely different economic principles than metropolitan residential investment.

The ten locations with Australia’s highest dwelling vacancy rates were located in Queensland, Tasmania, Victoria, NSW and Western Australia.

“Moreton Island claims Australia’s highest unoccupied dwelling rate at 66 per cent, yet defies assumptions that extreme vacancy indicates market weakness,” Ms Rader said.

“Properties command a median price of $1.25 million, with annual growth of 11.5 per cent and remarkable 10-year appreciation of 140.9 per cent.

“The island’s success illustrates how scarcity can drive values independent of traditional investment fundamentals.

“Vehicle access requires four-wheel drive capability and ferry transport, yet this isolation creates premium positioning that conventional metrics struggle to capture.

“However, building materials and tradespeople require ferry transport, increasing maintenance costs significantly while insurance premiums often run 30-40 per cent above mainland alternatives.”

129 North Pass, Tangalooma, on Moreton Island is for sale, with best offers due by November 14

Two Tasmania regions made the list – Central Highlands and Glamorgan-Spring Bay.

“Tasmania contributes two intriguing markets demonstrating the island state’s tourism transformation,” Mr Rader revealed.

“Central Highlands records 58 per cent unoccupancy with exceptional 157 per cent 10-year growth at $321,250 median, while Glamorgan-Spring Bay shows 132.4 per cent decade appreciation despite a recent 6.5 per cent annual decline.”

Top 10 regions for unoccupied rates

Victoria dominated premium holiday home markets, claiming four of the ten highest unoccupied locations.

“Lorne-Anglesea commands the highest median price at $1.57 million, yet records modest 3.8 per cent annual growth,” the research said.

“Point Nepean follows similarly at $1.31 million with identical 3.8 per cent growth.

“Both suggest premium markets reaching natural appreciation limits as affordability constraints restrict buyer expansion.”

Phillip Island (51%) and Otway (50%) also made the list.

Expressions of interest for 5 Hall Street, Lorne, Vic, close on November 18, with a price guide of $3.92m to $4.3m

South Australia’s Yorke Peninsula-South came in fifth spot with 52 per cent vacancy, while Callala Bay-Currarong in NSW came in ninth spot with 48 per cent vacancy, followed by Gingin-Dandargan in Western Australia, which came in 10th spot with an unoccupied rate of 45 per cent.

11 Tiddy Widdy Beach Road, Tiddy Widdy Beach, on the Yorke Peninsula is listed for $650,000 to $670,000

“Highly unoccupied locations face environmental risks that many traditional residential investment confront,” Ms Rader noted.

“Coastal exposure accelerates maintenance cycles through salt air corrosion, with insurance premiums often 20-30 per cent above regional averages.

“Bushfire risk affects multiple locations, requiring elevated insurance and potential evacuation during peak tourism periods.

“Climate change projections indicate these pressures will intensify, with sea level rise, increased storm frequency, and extended bushfire seasons threatening long-term viability in exposed locations.

“Successful markets increasingly factor environmental resilience alongside scenic appeal.”

MORE: Brutal maths says Block homes unattainable

Former MotoGP rider lists home with motocross and go kart track

Kochie: Tomorrow’s figures will spike rates

22 Boorawine Terrace, Callala Bay, is listed for $2.795m

Further, Ms Rader explained, highly unoccupied regions operated infrastructure designed for seasonal rather than permanent populations.

Recent regulatory changes had also altered investment calculations, she said.

“Victoria’s 7.5 per cent levy on short-stay platform revenue affects four locations in the analysis, while various councils implement rates surcharges for Airbnb properties,” Ms Rader said.

“These measures respond to housing affordability pressures but reduce rental income potential for holiday home investors.

“Tax implications add complexity, with Australian Taxation Office guidelines creating compliance requirements for dual-purpose properties and expense deduction limitations for properties not genuinely available for rent year-round.”

In terms of performance, Ms Rader saud that the relationship between high unoccupied dwelling rates and performance revealed fundamental differences between tourism appeal and residential investment dynamics.

“Moreton Island’s exceptional growth alongside extreme vacancy demonstrates how exclusivity can drive returns independent of rental income potential,” she said.

“Conversely, established premium markets like Lorne-Anglesea show how tourism success doesn’t automatically translate to sustained appreciation.”

The data reveals three distinct performance categories: premium established destinations with moderate growth, emerging markets with strong appreciation potential, and regional affordable locations offering balanced returns with lower entry barriers.

“Success requires understanding unique cost structures, risks, and market dynamics that distinguish these locations from conventional residential investment,” Ms rader said.

The post No one home: Top 10 regions for unoccupied dwellings revealed appeared first on realestate.com.au.