Markets in a ‘sound’ state despite shift: PIPA
The winds of change are sweeping through the country’s real estate market, but for Property Investment Professionals o...
The average length of ownership for houses and units has increased over the past decade, according to research by RP Data.
Data to December 2012 shows that the average length of house ownership was 9.3 years, compared to 6.8 years in 2002.
Meanwhile, the length of ownership for units has risen from 5.9 years to 8.2 years.
Melbourne is leading the way as the city where properties are owned for the longest time, followed by Sydney. Victoria’s West Wimmera council area had the country’s longest hold period, at 14.7 years for houses.
The shortest hold periods are found in Port Hedland, at 4.4 years for houses, and Weipa in far north Queensland at 3.4 years for units.
RP Data analyst Cameron Kusher said the average hold period for houses and units remained relatively static until late 2005, however has increased consistently from this time.
“An increase in holding periods is logical when measured against the decline in sales,” he said. “Added to this is the fact that the population has continued to grow given that home values have risen. As a result, transaction costs such as agent commissions and stamp duty have also increased.”