The Great Australian Dream may have evolved from a nice and neat home on a quarter acre block but make no mistake – Australians love acquiring property. So much so that recent research from CoreLogic shows that Australians are holding on to their homes for longer than than they have in over a decade
This trend of staying in the same place for longer has a number of benefits, from creating stronger, tightly knit communities, to slowing property price increases caused by high property turnover.
Facts: Average Home Ownership Length
As of September 2019, property owners in Australia are now holding on houses for an average of 11.3 years, while apartments average 9.6 years. Back in 2009 the averages were just 7.5 years for houses and 6.7 years for units. Cameron Kusher, research analyst at CoreLogic says this trend is mainly driven by affordability concerns:
“The rising cost of selling and purchasing property, combined with affordability constraints across some Australia’s more expensive capital cities contribute to owners holding onto their properties longer.”
Melbourne and Sydney Homeowners Hold Longer
Those who own a detached home in Melbourne and Sydney hold it for longer than those occupying other capital cities, which could suggest that high prices are one of the key drivers of the trend.
In Melbourne the average period of ownership for a detached house is 12.5 years, whereas in Sydney it’s 12.4. Apartments in these two cities are held for around 9 years on average.
The longest average holding periods are predominantly seen in suburbs in NSW and VIC:
The shortest hold periods, on the other hand, are found in East Pilbara WA – an area where the economy relies mainly on mining and as a result has a more transient population. In general, regional areas also tend to have slightly shorter average holding periods than metro areas.
The Other Capital Cities
Lower house prices usually correlate with shorter average holding periods, according to CoreLogic’s data. As a result, the other capital cities have shorter holding periods for detached homes than Sydney and Melbourne:
The average length of home ownership is expected to continue increasing in most areas throughout Australia, according to Mr Kusher:
“This 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. It’s expected that this trend will continue over the coming years.”
Buying and holding property is an important component in many Australian’s wealth creation and management strategies – especially now that the Sydney, Melbourne and Brisbane markets are on the upswing again. So, if you’re looking for your forever home, start your search the right way on Homes.com.au.