‘Tightly held’ sub­urbs may sim­ply in­di­cate a hard sell

The Weekend Post - Real Estate - - Front Page -

I HAVE been read­ing some prop­erty re­search, data that shows me that it is still pos­si­ble to find peo­ple that love their houses as a home, a place to stay and set­tle.

This is rare, as the fo­cus of re­cent decades has been to trans­form the very be­ing of a home as noth­ing more than a sup­ple­ment of our in­come, which can be some­times suc­cess­ful, but other times a mis­er­able fail­ure.

This re­search anal­ysed the per­for­mance over the last year of the sub­urbs where home­own­ers held on to their homes for the long­est time.

In WA, the sub­urbs fea­tured were not only in Perth but in re­gional ar­eas too, with pe­ri­ods of 13 to 14 years typ­i­cal.

In Vic­to­ria it was all about Mel­bourne, with sub­urbs re­tain­ing av­er­age own­er­ship pe­ri­ods of be­tween 14 and 16 years.

Tas­ma­nian data showed Ho­bart and a few ar­eas of north­ern Tas­ma­nia rang­ing from 11 to 13 years.

South Aus­tralia saw mainly Ade­laide sub­urbs, 11 to 12 years on av­er­age. ACT was about the same du­ra­tion of 11 to 12 years.

The NT was all about Dar­win, which only got to eight or nine years — the low­est of all.

You may not be sur­prised that NSW had the high­est av­er­age own­er­ship, rang­ing from 18 to 20 years in its top sub­urbs, which were mostly in Syd­ney, although one area in the Hunter Val­ley made it onto the list.

Queens­land showed the most sur­pris­ing re­sults with a wide range of ar­eas, not just metropoli­tan, and a hold­ing time of 17 to 19 years.

So are these ar­eas the best places to live in Aus­tralia (and why I haven’t dis­closed the spe­cific sub­urbs to avoid cre­at­ing a mini boom)?

As fas­ci­nat­ing as this is, treat­ing it as a sig­nal to guar­an­teed sat­is­fac­tion would be a po­ten­tial prop­erty pit­fall.

The re­al­ity of long-term prop­erty own­er­ship in par­tic­u­lar ar­eas is an in­di­ca­tion of area de­sir­abil­ity, both in terms of in­vest­ment and well­be­ing, is that it could also be a place to avoid, where homes take a long time to sell and life­style is but a dream.

The data re­vealed the long­est-held sub­urbs with the quick­est sale pe­riod or (days on mar­ket) but I won­der about many of the ar­eas and sub­urbs that may have made the top 20 that didn’t have quick sale pe­ri­ods.

Per­son­ally, I see ar­eas where fam­i­lies stay in homes for the long term gen­er­ally as a pos­i­tive.

Typ­i­cally this hap­pens in es­tab­lished ar­eas away from new land re­leases; lim­ited sup­ply with min­i­mal new con­struc­tion stock tends

to keep stock lev­els low and val­ues cush­ioned.

The flip side is the ar­eas where eco­nomic, geo­graphic or over­sup­ply rea­sons force own­ers to stay put.

Per­haps too much new land is be­ing re­leased, or a largescale em­ployer has closed down, re­sult­ing in sell­ers giv­ing up or stay­ing listed for long pe­ri­ods of time.

For these mar­kets, it is not de­sir­abil­ity, but weak sell­ing con­di­tions that lengthen hold pe­ri­ods.

If you are look­ing for a home, not just an in­vest­ment prop­erty to live in, con­sider these fac­tors care­fully.

Es­tab­lished, tightly held ar­eas are usu­ally more ex­pen­sive. Less sup­ply, more de­mand means sell­ers can be bullish, so as tempt­ing as it may be, you might find bet­ter value else­where.

You may then give some thought to the al­ter­na­tive, the area where your owne­roc­cu­pier neigh­bours change more fre­quently than

the na­tion en­joys new prime min­is­ters. If the value is there for your needs, why not?

One day the new land re­leases stop, a train sta­tion ap­pears, your neigh­bours start to be­come fa­mil­iar faces and, be­fore you know it, you’re liv­ing in the place to be.

Stay­ing long term is be­com­ing more of a trend, as mov­ing is now a con­sid­er­ably more ex­pen­sive process to un­der­take, even if it is noth­ing more than a move down the street.

Re­mem­ber, though, if you see the much loved real es­tate term “tightly held” re­fer­ring to a prop­erty you are about to in­spect, it may be a hint of a huge price tag or, worse, that it was pur­chased 10 years ago but has been for sale the past nine.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.