The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterMon 06 Apr 15

People Owning Homes For Longer

P

Homes are being owned for longer, with the average years of home ownership in capital cities climbing from 6.8 years a decade ago to 10.5 years over the past 12 months, according to new research.

Across the capital cities over the past decade, Hobart (4.4 years) and Canberra (4.3 years) recorded the greatest increase in average hold period for houses. Hobart (4.2 years) and Adelaide (3.8 years) have recorded the biggest increases for units. Melbourne and Perth (both 3.3 years) recorded the smallest increase in average hold period for 9.0 houses over the decade while Sydney and Melbourne (both 2.4 years) recorded the smallest increases for units.

The research was compiled by CoreLogic RP Data research analyst Cameron Kusher.

Across the council areas, the region to record the shortest hold period was the Darwin region of Palmerston with a 5.7 years hold period while the regional south-east Queensland area of Somerset has the shortest average hold period for units at 4.6 years.

According to Mr Kusher, many of the regional areas listed are smaller regional townships, many of which are linked to the mining and resources sector.

Interestingly, he noted that there are very few New South Wales, Victorian or Tasmanian council areas on either lists of shortest average hold period.

The longest average hold period in 2014 in the council areas were more varied than the list for the shortest hold periods with both regional and capital city council areas on the lists.

New South Wales and Victoria emerge as the areas which typically have the longest average hold period. Auburn in Sydney has the longest average hold period for houses at 15.7 years and Greater Shepparton in north-western Victoria has the longest average hold period for units at 12.6 years.

Homes which were sold in 2014 across the combined capital cities showed that houses had been owned for an average of 10.5 years and units for 8.7 years. A year earlier the average hold period of those homes sold was 10.1 years for houses and 8.4 years for units.

Across the regional markets, Mr Kusher found that homes tended to sell on a more regular basis than their capital city counterparts.

At the end of 2014, the average hold period of a regional house was 10.0 years compared to 9.6 years at the end of 2013; units were typically held longer than those in a capital city at 8.9 years compared to 8.6 years at the end of 2013.

According to Mr Kusher, over recent years there has been an ongoing trend towards homes being held for longer. Since the middle of 2005, the average hold period has continued to trend higher. This has occurred alongside a reduction in transactions.

“We’ve also noticed that the trend towards homes being held for longer is evident across each individual capital city where on average, houses are currently held for longer than units across each capital city. Melbourne also has the longest average hold period of all capital cities for houses and units," he said.

“With the hold period continuing to trend higher at a national level across all capital cities it is evident that home owners are moving less regularly than they have in the past. This is further highlighted the number of houses and units selling at a national level is much lower than the peak in 2003-04, despite the fact that the overall national population is much greater now.”

“High home entry and exit costs no doubt play a large role in homes being more tightly held. Charges levied on the sale price such as stamp duty and agent commissions no doubt act as a disincentive for home owners to move on a more regular basis or alternatively move to more appropriate accommodation as their needs evolve over time.

“We see no evidence to suggest that over the coming year the average hold period of properties selling won’t increase further."

ResidentialAustraliaSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
First projects named in a statewide plan to fast-track supply, including thousands of homes in a major growth region…
LATEST
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/average-years-of-home-ownership-on-rise