Key takeaways
In many suburbs across Australia, average hold periods are more than double the national average, suggesting that homes are long-term investments deeply tied to lifestyle, community, and evolving property values.
Tightly held suburbs are attractive to a broad demographic, and can withstand different life stages, contributing to longer hold periods. These suburbs also boast appealing attributes such as proximity to water, good schools, parks, and convenient infrastructure.
The reluctance to sell is also influenced by tax and policy barriers, such as stamp duty, which disincentivize homeowners from downsizing. In Sydney, homeowners are less inclined to sell frequently, resulting in some of the longest hold periods nationally.
Rising prices and lower interest rates have encouraged some homeowners to sell and upgrade more quickly, leading to a decline in average hold periods in capital cities that have experienced the most significant price increases over the past five years.
Average hold periods in every capital city region have increased since 2014, driven by long-term property price appreciation and barriers like stamp duty. This suggests that homeowners are increasingly treating their properties as long-term investments and places to put down roots.
Why do some suburbs seem to have properties that rarely come onto the market?
Recent analysis from PropTrack, as shared by their Senior Economist Eleanor Creagh, sheds light on this phenomenon, revealing that in many suburbs across Australia, average hold periods are more than double the national average of about 10.5 years.
This trend suggests that for many Australians, their homes have become much more than just a place to live—they are long-term investments deeply tied to lifestyle, community, and evolving property values.
The appeal of tightly held suburbs
According to Ms Creagh, it’s not just one factor that makes certain suburbs tightly held; it’s a combination of gentrification, enhanced amenities, desirable lifestyles, and strong community ties.
She further commented:
“These suburbs often boast appealing attributes such as proximity to water, good schools, parks, and convenient infrastructure, making them attractive to a broad demographic—from young families to retirees.
As a result, these areas can withstand different life stages and accommodate a wide range of housing needs, contributing to longer hold periods.”
Typically, life events like marriage, childbirth, or retirement trigger changes in housing needs, prompting homeowners to sell.
However, in tightly held suburbs, the wide-ranging appeal means residents are less likely to move on, even as their circumstances change.
It’s these “sticky” qualities—convenience, lifestyle, community—that make these suburbs hard to leave.
Houses vs. units: a tale of two hold periods
PropTrack’s analysis shows that houses tend to be held for longer periods than units.
This difference can be attributed to the broader appeal of houses, which attract families and those seeking more space and the flexibility to make enhancements.
On the other hand, units typically turn over more quickly as they often cater to a more transient or investment-focused demographic.
Interestingly, many of the suburbs with the longest hold periods are well-established and located in the middle and outer suburbs of capital cities, often considered great neighbourhoods.
These areas have a high degree of desirability and convenience, with residents choosing to live in these pockets for the long term.
The role of taxation and market dynamics
The reluctance to sell is also influenced by tax and policy barriers, such as stamp duty, which can disincentivize homeowners from downsizing.
As Ms Creagh points out, empty nesters often remain in large family homes even when they no longer need the space, due to the financial and logistical hurdles associated with moving.
This trend is particularly evident in Sydney, where the high burden of stamp duty contributes to longer average hold periods—over 13 years for houses and just under 10 years for units.
Sydney’s status as a global city with robust economic fundamentals and international appeal also adds to its long-standing desirability.
These factors, combined with the city’s high property prices, mean that homeowners are less inclined to sell frequently, resulting in some of the longest hold periods nationally.
Shifting trends: how rising prices influence hold periods
While some areas remain tightly held, the analysis also reveals that rising property prices can prompt earlier sales in certain regions.
Over the past five years, markets like Brisbane, Adelaide, and Perth have seen extraordinary growth, with Brisbane leading the charge—house prices have surged by 81%, and unit prices by 55%.
This value uplift has encouraged some homeowners to sell and upgrade more quickly, leading to a decline in average hold periods in these cities.
Lower interest rates during this period have also played a role, making buying, refinancing, and upgrading more accessible.
As a result, average hold times have generally fallen in capital cities that have experienced the most significant price increases over the past five years.
This trend is evident in smaller regions as well, where the areas with the biggest falls in hold periods are those that have outperformed in price growth.
The future outlook
Looking back over the past decade, average hold periods in every capital city region have increased since 2014, driven by long-term property price appreciation and barriers like stamp duty.
While newly established regions may see shorter holding periods due to the nature of their housing stock and buyer demographics, the broader trend suggests a growing inclination to hold onto properties for longer, especially in established and desirable suburbs.
Ms Creagh noted that as we move forward, it’s clear that the Australian property market is evolving.
Whether driven by lifestyle, economic factors, or policy implications, homeowners are increasingly treating their properties as long-term investments and places to put down roots.
For those looking to buy in these tightly held suburbs, patience and persistence may be key, as the appeal of these areas shows no sign of waning anytime soon.
