Posted by CoreLogic RP Data
on 7 April 2015
Across Australia, homes are being owned for longer, with the average number of years a capital city house is owned climbing from 6.8 years a decade ago to 10.5 years over the past twelve months.
An analysis of the homes which were sold in 2014 showed that across the combined capital cities, 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, homes tend 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.
Since the middle of 2005 the average hold period has continued to trend higher. This has occurred alongside a reduction in transactions.
The trend towards homes being held for longer is evident across each individual capital city. Houses are currently held for longer on average than units across each capital city. Melbourne also has the longest average hold period of all capital cities for houses and units.
Over the past decade, Hobart (4.4 years) and Canberra (4.3 years) have recorded the greatest increase in average hold period for houses and Hobart (4.2 years) and Adelaide (3.8 years) have recorded the biggest increases for units. Melbourne and Perth (both 3.3 years) have recorded the smallest increase in average hold period for houses over the decade while Sydney and Melbourne (both 2.4 years) have recorded the smallest increases for units.
Capital city average hold periods over time
|
| HOUSES | UNITS |
| CAPITAL CITY | 2004 | 2009 | 2013 | 2014 | 2004 | 2009 | 2013 | 2014 |
|
Sydney |
7.3 |
9.3 |
11.0 |
11.2 |
6.0 |
7.4 |
8.3 |
8.5 |
|
Melbourne |
8.5 |
9.4 |
11.4 |
11.8 |
7.2 |
7.7 |
9.4 |
9.7 |
|
Brisbane |
6.2 |
7.5 |
9.9 |
10.2 |
5.1 |
6.0 |
8.2 |
8.4 |
|
Adelaide |
4.8 |
6.2 |
8.0 |
8.3 |
4.4 |
5.9 |
7.8 |
8.1 |
|
Perth |
5.5 |
6.7 |
8.4 |
8.8 |
4.9 |
6.1 |
7.9 |
8.2 |
|
Hobart |
5.3 |
7.0 |
9.2 |
9.6 |
4.9 |
6.3 |
8.5 |
92 |
|
Darwin |
3.1 |
4.4 |
6.2 |
6.7 |
3.1 |
4.1 |
5.7 |
6.4 |
|
Canberra |
5.4 |
7.6 |
9.5 |
9.7 |
5.1 |
6.6 |
8.4 |
8.7 |
The council areas across the country with the shortest average hold period are largely located outside of the capital cities, reflective of homes being held longer in capital cities as opposed to regional areas.
