‘Locked in’ Camillo the most tightly-held suburb in Perth

November 30, 2020

‘Locked in’ Camillo the most tightly-held suburb in Perth

November 30, 2020

Camillo homeowners are Perth’s most reluctant to move, with residents staying put for almost 16 years on average.

New data compiled by realestate.com.au shows residents in the south-eastern suburb, on average, do not up stumps for 15.9 years.

Mundijong was the second most favoured Perth suburb with homeowners staying 15.4 years, while Noranda, Edgewater and Bellevue residents tended to stay on for between 14 and 15 years.

The timeframes are well above the average hold period for houses in Perth, which sits at 9.7 years.

The realestate.com.au data shows average hold periods for houses in Perth have steadily increased from seven years in February 2010 to more than 11 years in May 2020, but dipped to 9.7 years in August 2020.

Kardinya was the most tightly-held suburb for units with owners staying 15.1 years, while Noranda and Bassendean unit owners stayed for 14.8 years. Melville and Bibra Lakerounded out the top five for units, with 14.5 years and 13.6 years respectively.

Executive manager of economic research at realestate.com.au Cameron Kusher said Perth and regional WA have relatively lower hold periods than other states, which is likely reflective of the lower cost of housing and recent price falls.

“Over recent years we have also seen many people leaving WA for other states and that may be driving the lower average hold periods across the state,” Mr Kusher added.

Con Mathews, from O’Neil Real Estate – Kelmscott said it was possible Camillo residents who had purchased at the height of WA’s property boom may be financially hamstrung and locked out of selling and moving on.

“A lot of people bought [in Camillo] in the last 10 to 15 years when prices were high some time ago and simply cannot afford to move,” Mr Mathews said. “They may have a lack of equity, they may owe more on their properties than they’re worth and it creates an inflexible environment for selling.

“That’s probably consistent with a lot of suburbs around here, including Armadale and Seville Grove.

Mr Mathews said Mundijong, which recorded WA’s second longest hold period, was favoured for lifestyle factors.

“Mundijong is a nice place to live,” he said. “It has a semi-rural feel. It’s just out of Byfordbut there are a lot of quarter acre, half acre lots in Mundijong as well as acreage close to the town centre,” he said.

Mark Passmore, from Passmore Real Estate – Morley said Noranda had shown itself as a preferred suburb for families who, once they bought in, were reluctant to leave. He said both houses and units are tightly-held.

“There are several reasons – [the families] are often highly religious and very family orientated,” he said.

Mr Passmore said changes to council boundaries, which transferred part of Noranda from the City of Swan to the City of Bayswater, have allowed for subdivisions, which have made the suburb more attractive for investors.

“Generally, people buy in for family and stay long term. There’s changing waters and I believe you’ll see a difference in the next few years,” Mr Passmore said.

“It’s changing now because people have been there so long so they are looking to retire out and you’re getting younger families coming in, so I believe you’ll see more change in the area over the next year or year-and-a-half.”

Mr Kusher predicted shorter hold times in WA in coming years.

“Over the coming few years we may actually see further declines in hold periods in WA with the low cost of borrowing potentially encouraging greater turnover of housing stock,” he said. As interest rates eventually start to rise I believe we will see the onward march of longer average hold periods return.”

Source: realestate.com.au