Aussies are slower to sell their properties this year thanks to tougher market conditions, but regional Australia continues to outperform.
While 5.3 per cent of Australian houses transacted in the 12 months to July 2017, just 4.6 per cent sold in the year to July 2018.
“It’s likely that housing affordability has delivered a large impact on the broader downward trend in turnover rates,” CoreLogic analyst Jade Harling said today.
“Fifteen years ago the dwelling price to income ratio as a national figure showed that dwelling prices were 5.1 times as high as the gross household income, while recent data shows this has increased to 6.8,” she continued, noting it’s worse in Sydney and Melbourne.
However, “As housing has become less affordable across some capital city markets, regional areas have benefitted from the flow-on effect for being the more affordable option.”
In fact, in the year to July, four of the seven regional state areas outperformed their capital city counterparts in terms of turnover.
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Regional Tasmania had the highest level of turnover among regional areas, while regional Western Australia was one of the weakest.
New South Wales
The top-five council regions for turnover were all outside of capital cities. However, Harling added that these regions also have shallow stock levels.
Alice Springs recorded the highest yearly turnover, with Katherine recording 4.0 per cent.
The top five suburbs for turnover in Queensland were all outside of the capital city.
“Four out of five of the SA council regions were in regional areas of the state,” Harling said.
In line with the trend, only two of the suburbs with high turnover rates were in the city of Hobart.
Victoria bucked the trend, with its top two states for turnover inside the Greater Melbourne limits.
“Interestingly, WA’s top turnover area’s over the year were in the mining regions of Port Hedland, Karratha and East Pilbara, given values across these regions saw considerable declines coming out of the mining boom 10 years ago, resulting in less housing turnover,” Harling said.
“Recent years have seen transaction levels increase and declines in the region ease.”