Mar 8, 2013 - PropertyGuru.com.sg
Australian homeowners are adopting a wait-and-see approach to selling their homes in the hope that prices might rise, reported RP Data.
Figures show that Australians are holding on to their largest investment for at least 25 percent longer compared to 10 years ago. The average holding period for homes is 9.3 years, while units were held for 8.2 years. This is in comparison to 6.8 years and 5.9 years respectively 10 years ago.
The study also found that Melbourne’s homeowners waited almost 11 years before selling, mainly due to the price slump in recent years.
The consultancy also noted that the average holding period for houses and units remained relatively stagnant until late 2005, and increased after this time.
“As a result, transaction costs such as agent commissions and stamp duty have also increased,” said Cameron Kusher, analyst at RP Data.
“Clearly, there is no incentive for homeowners to move more frequently.”
Another factor that may have deterred them from selling is the higher stamp duty. For instance, sellers in regional and coastal areas of Victoria recorded the longest average holding period for both houses and units.
Home prices across Australia's capital cities increased by only 0.3 percent in February following a 1.2 percent rise over the previous month.
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