Australians are holding onto their homes and staying put in their properties much longer than previously, new research has revealed.
The latest data from property research firm CoreLogic shows we are keeping our properties for 33 per cent longer than was the case a decade ago.
No matter whether it’s a unit or a house, people are going for longer stretches before selling up and moving on compared to 10 to 15 years ago, latest figures to May 2019 have shown. Since 2005, the average hold period for Australian dwellings has continued to increase by around one-third.
“The data suggests that homeowners are much more reluctant to sell their property than they were a decade ago, which is also highlighted by the ongoing decline in sales transactions,” senior research analyst Cameron Kusher explained in the latest CoreLogic Property Pulse.
But it’s not necessarily capital growth owners are focusing on, or the emotional bond to a property that is driving the change.
“Other factors such as the rising cost of selling and purchasing property, combined with affordability constraints across some of Australia’s more expensive capital cities contribute to owners holding onto their properties longer,” Mr Kusher said.
“It’s expected that this trend will continue over the coming years given such concerns aren’t likely to see much improvement in the near future.”
Nationally, the average length of home ownership is sitting at 11.3 years for houses and 9.6 years for units. Over the past 10 years, that’s an increase of 3.8 years and 2.9 years respectively.
To get the average hold period average, CoreLogic researchers accumulated sales from the past 12 months, using the latest sold date and the previous sold date to establish how long a property has been in the same hands. The data, however, does not distinguish between owner occupied and investor properties.
HOUSES’ HOLD OVER UNITS
Across individual capital cities, houses on average are being held longer than units.
During the past year, houses in Melbourne recorded the longest period of ownership at an average of 12.5 years, while Perth had the longest average for units at 10.8 years.
Conversely, houses in Darwin, which are typically held for 9.2 years, and units in Canberra, with an average of 8.7 years, were home to the shortest average hold periods.
Compared to 10 years ago, Mr Kusher said Sydney recorded the longest average hold periods for both houses and units at 9 and 7.3 years respectively.
Since then, it’s been Melbourne’s houses that have been held onto the longest. Results have been varied across the various unit markets.
Step out of the capitals, and regional Victoria and Queensland were home to the longest average hold periods. Houses across both regions are currently being held for 11.1 years on average, while units in regional Western Australia are being held onto the longest at 10.2 years.
In the Top End, the Northern Territory’s “rest of state” region currently has the shortest average hold period at 8.9 years for houses and 8 years for units.
IN FOR THE LONG HAUL
Drilling down to local council areas with the longest average hold periods, the list for houses is dominated by Melbourne, Sydney and regional Queensland councils.
Houses in Monash, Victoria topped the longest average hold period list at a significant 17.1 years.
Perth makes up eight out of the 20 council regions listed with the longest hold periods for units.
Armadale, Western Australia and Swan Hill, Victoria both recorded an equal average hold period of 13.4 years for units.
When it comes to regions with the shortest time between changing hands, the East Pilbara council region topped the list for both houses and units. Houses there are only currently being held for 7.7 years, while units are kept for only 3.8 years before being sold off.
The shortest average hold period list for units is dominated by Melbourne with 6 of the 20 council regions making up the unit list.