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Australian homes now held for 54pc longer

31 March 2015 Elyse Perrau

New research has revealed the average number of years a property is owned has climbed from 6.8 years a decade ago to 10.5 years.

Capital city houses that were sold in the December 2014 quarter had been owned for an average of 10.5 years, while units had been held for 8.7 years, according to CoreLogic RP Data.

Across capital cities over the past decade, Hobart recorded the greatest increase in the average hold period for houses, up 4.4 years to 9.6.

Canberra was not far behind, increasing 4.3 years to 9.7.

Brisbane increased 4.0 years to 10.2, while Sydney rose 3.9 years to 11.2.

Darwin experienced a rise of 3.6 years to 6.7, while Adelaide’s holding period rose 3.5 years to 8.3.

Both Melbourne and Perth recorded the smallest increase in over the decade, adding only 3.3 years to 11.8 and 8.8 respectively.

Hobart and Adelaide recorded the biggest increases for units over the past decade, with Hobart houses’ average holding period jumping 4.2 years to 9.2 and Adelaide's up by 3.8 years rise to 8.1.

Canberra increased 3.6 years to 8.7 while Brisbane, Perth and Darwin all saw a rise in the holding period of 3.3 years.

In the December 2014 quarter, Brisbane had reached 8.4 years, Perth 8.2 years and Darwin 6.4 years.

Sydney and Melbourne recorded the smallest increases for units, adding only 2.4 years to the average hold period.

This increased Sydney’s holding period to 8.5 years and Melbourne’s to 9.7 years.

CoreLogic RP Data research analyst Cameron Kusher said the average hold period for property had trended higher since 2005.

“High home entry and exit costs no doubt play a large role in homes being more tightly held,” Mr Kusher said.

He said there was no evidence to suggest the average hold period won’t increase further in the coming year..

 

[Related: Cheapest capital city rental suburbs revealed]

Australian homes now held for 54pc longer
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