Home owners in Sydney and Melbourne are holding onto their houses longer while owners in Melbourne and Hobart are doing the same with their units according to a report out today by RP Data which looked at the length of time a property is held by its existing owner.
Research analyst Cameron Kusher said that the average length of ownership for residential properties is continuing to increase. “This indicates to us that home owners are moving less frequently,” he said. For houses, today’s results show that the average hold period across Australia’s capital cities was 10.1 years at the end of 2013, and for units it was 8.4 years. In the regional markets, the hold period was slightly less for houses at 9.5 years while for units it was longer at 8.6 years.
Mr Kusher’s analysis, which is best seen in the first of the adjacent charts, highlights a consistent increase in the average hold period since about 2004/05. “This rise coincides with the national surge in home values from 2001 to 2004 and the subsequent fall in sales volumes thereafter,” he said.
Capital city average hold periods over time*
|* Our Northern Territory data structure commences in 1999 so may not be indicative||Source: RP Data|
Across the individual capital city housing markets, the average hold period trended higher across each market over the past decade. The results also show that houses in particular tend to be held for much longer in Sydney and Melbourne than they do elsewhere.
By the end of 2013, Melbourne had the longest average hold period for houses and units recorded at 11.4 years and 9.4 years respectively. Sydney houses had the second longest average hold period at 11.0 years while for units Hobart held second longest hold period at 8.5 years. Each capital city has recorded an increase in the average hold period for houses and units over the past year.
|Council Area||State||Avg hold period||Council Area||State||Avg hold period|
|Glen Eira||VIC||13.6||Break O’Day||TAS||4.6|
|Greater Dandenong||VIC||13.0||Mount Isa||QLD||5.3|
|Sutherland Shire||NSW||12.5||Mid-Western Regional||NSW||5.7|
|Source: RP Data|
Across the country’s council areas, Auburn in New South Wales is the area with the longest average period for houses at 15.5 years. For units, New South Wales and Victoria dominated the list; however, most of these areas are situated outside of the capital city.