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New research has shed light on the length of home ownership, including why buyers are choosing to keep their property for longer than in years’ past.
According to sales data analysis by CoreLogic, property owners are holding on to their homes for longer, with the past 12 months indicating that houses are currently held for 11.3 years on average, while units are held for 9.6 years on average.
The results represent an increase of 3.8 years for houses and 2.9 years for units over the past 10 years.
“The data suggests that home owners 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,” research analyst Cameron Kusher said.
“Other factors at play include: the rising cost of selling and purchasing property combined with affordability constraints across some of Australia’s more expensive capital cities contribute to owners holding onto their properties longer.
“It’s expected that this trend will continue over the coming years, given such concerns aren’t likely to see much improvement in the near future.”
Breaking down the capital cities, the research found that Melbourne houses recorded the longest period of ownership, with buyers holding on to their homes for 12.5 years on average.
Adelaide and Darwin houses saw the shortest period of ownership, with buyers holding on to their homes for 10.1 years and 9.2 years, respectively.
Perth took out the top spot in terms of units, with buyers in the WA capital hanging on them for 10.8 years on average.
Next up was Brisbane at 9.8 years, then Sydney, Adelaide and Hobart at 9.6 years, Darwin at 9.5 years, Melbourne at 9.3 years, and Canberra at 8.7 years.