New data shows Sydney home owners are living in their properties for longer.
The median tenure for Sydneysiders in houses reached 10 years in 2023, up from eight years in 2013, Domain's Tenure Report found.
The median tenure for unit owners increased to a median of eight years in 2023, up from six years in 2013.
Domain's Chief of Research and Economics Dr Nicola Powell said the lengthening tenure of both property types in Sydney highlights the city's affordability challenges.
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"It's our most unaffordable market. It showcases the financial impacts of the transactional costs such as stamp duty," Powell said.
"It's a disincentive to move, it's a disincentive to downsize or right size their home. People are staying in their homes longer because mortgages are so big."
Powell also said the tenure gap between houses and units has also narrowed from three years to two years since 2018.
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The home owners who held their houses the longest were in the SA3 statistical region of Strathfield, Burwood and Ashfield, who owned for a median period of 13 years.
Its median house price of $4.3 million is the seventh most expensive in the country. The median profit made in that period was $477,000.
Meanwhile, home owners in the region of Rouse Hill and McGraths Hill held their houses for the shortest median period of six years. The median profit made in that time was $570,250.
HSBC Australia chief economist Paul Bloxham said high transaction costs of changing homes meant Sydneysiders were staying put.
"Stamp duty reduces mobility. This is an area we need to focus on more. This is a headwind to improving productivity and dynamism in the economy," Bloxham said.
He also noted that stronger-than-forecast population growth, and low levels of homes for sale, meant homes were selling for a profit despite a higher interest rate environment than two years ago.
Belle Property Strathfield's Norman So said Strathfield council area took in the unit-heavy suburb of Homebush, while the SA3 region encompassed several premium housing markets.
"I'm not finding much loss-making in the housing market," he said. "We're surrounded by the most exclusive schools … It's a premium market that holds its own ground.
"There are a lot of units in Homebush, so that's within the [Strathfield] local government area. Off the plan, they traded for $750,000 for a two-bedroom unit.
"They are currently reselling on the second-hand market for $650,000. Most of the unit losses are occurring in that Homebush market due to an oversupply."
This article was originally published in The Sydney Morning Herald.
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