Credit availability has continually tightened over recent years to the extent that transaction volumes have fallen and led to a reduction in turnover, the latest CoreLogic report has found.
The results of CoreLogic’s Property Pulse report show that turnover of national housing is at 4.6 per cent over the last 12 months to November 2018, the lowest point for the last nine years.
This trend is more evident when looking at the combined capital cities as opposed to regional areas, at 4.5 per cent and 5.5 per cent, respectively, according to CoreLogic analyst Cameron Kusher.
In comparison, these figures were at 5.3 per cent and 5.9 per cent, respectively, this time last year.
Mr Kusher said that, in most locations, the turnover is being driven by affordability and the tightening of credit.
“While affordability and credit conditions have worsened, the volume of stock for sale has actually increased with ample stock for sale to encourage turnover but credit access is crimping turnover,” the analyst said.
“With credit conditions expected to remain tight over the coming months, the expectation is for fewer sales transactions and an ongoing fall in housing turnover.”
The Property Pulse also analysed turnover over the last 12 months for each capital city and regional area for every state and territory:
New South Wales
Sydney’s turnover was at its lowest over the last nine years because of a fall in property sales, with 4.8 per cent of property passing hands as opposed to 6 per cent the year before.
Regional NSW is seeing slightly higher, but still depressed, levels of turnover at 6.6 per cent from 7.5 per cent the year before.
Turnover in Melbourne is also at its lowest point over the last nine years at 4.2 per cent as opposed to 5.3 per cent the year before.
Regional Victoria saw a slight uptick at 5.7 per cent, up from 5.6 per cent the year before.
Brisbane saw turnover decline to 4.5 per cent, down from 5.1 per cent a year earlier, but is not as low as it was in 2011.
Regional Queensland saw similar conditions, falling to 4.8 per cent from 5.1 per cent last year, and avoided dropping below its lowest point, which also occurred in 2011.
Adelaide’s housing stock remained stable over the last year, recording 4.6 per cent both this year and last.
Regional South Australia saw an improvement in turnover, rising to 4.1 per cent from 3.8 per cent the year before.
Perth’s turnover this year was at 4 per cent, down from 4.2 per cent the year prior.
Regional Western Australia saw a slight improvement to 3.9 per cent, up from 3.8 per cent.
Overall, however, conditions in Western Australia have seen very low turnover, which the Property Pulse noted was due to its ongoing weak economy and housing market.
Hobart’s turnover slipped to 5.4 per cent, down from 6.1 per cent the year before, due to limited supply.
Regional Tasmania, however, was stable at 6.3 per cent for both this year and last year.
Darwin’s turnover dropped slightly to 3.5 per cent from 3.6 per cent last year.
Regional Northern Territory saw similar conditions, dropping to 4.5 per cent from 4.6 per cent the year prior.
Much like Western Australia, the whole of the Northern Territory’s turnover levels have been low for years due to low sales volumes.
Australian Capital Territory
In Canberra, turnover has remained steady at 4.8 per cent.