With high transactions costs and affordability challenges in some markets, transaction numbers have been trending lower since 2015 resulting in lower turnover of housing stock.  This week we take a look at the suburbs in each state and territory that have recorded the highest and lowest turnover over the past year.

Housing turnover is measured by comparing the number of sales over a period (12 months) to the total number of dwellings.  Based on this data the proportion of the total housing stock that sold over a period can be calculated.

The analysis within this report calculates turnover percentages for those suburbs which have at least 1,000 dwellings within them.  Nationally, housing turnover has been gradually trending lower, from a recent high of 6.5% back in 2009 to just 4.8% over the twelve months ending February 2018.  Lower turnover is likely attributable to several factors including high transactional costs (think stamp duty, raising a deposit, building and pest inspections etc) as well as affordability constraints and disincentives for mature aged home owners to downsize.

While the results are diverse, the suburbs with the highest turnover tend to be located in more affordable areas synonymous with first home buyers and often located around the outer fringes of the capital city metro areas. These areas are often a starting point for families entering the market with an eventual view to upgrading the family home over time.  The suburb with the highest proportion of stock turn-over throughout the past 12 months was Spring Farm, located in Sydney’s Macarthur region.  Spring Farm saw 12.0% of its total housing stock sell over the past year.  

Suburbs with the highest levels of turnover,
12 months to February 2018

CoreLogic Suburbs with the highest level of turnover, 12 months to Feb

New South Wales

4 of the 5 suburbs with the highest turnover are located in Sydney.  All of these suburbs are on the outskirts of the city and are seeing high levels of new housing development.  Casuarina on the Tweed Coast is a lifestyle market which has a mix of houses and units.

Victoria

The top 5 suburbs for housing turnover are distributed across Greater Melbourne.  They are all located on the outskirts of the city and are affordable new housing estate areas seeing high levels of new housing development.

Queensland

3 of the 5 suburbs are situated in Brisbane with the other 2 located on the Gold and Sunshine Coasts.  Each of these suburbs can be characterized as areas seeing high levels of new housing supply.  Newstead is somewhat different to the others because its new housing supply is coming in the form of units rather than houses.

South Australia

Each of the 5 suburbs with highest turnover are in Adelaide.  Unlike the other capital cities, the list is dominated by areas with largely established housing stock rather than an influx of new stock.

Western Australia

4 of the 5 suburbs are located in Perth and 3 of the 4 Perth suburbs are locations where heightened levels of new housing construction is occurring. South Hedland is a mining region of north-west WA and is seeing quite high turnover albeit most of that turnover is at prices that are well below the peak.

Tasmania

4 of the 5 suburbs are situated in Hobart with Huonville just outside of the capital.  Hobart is not seeing a lot of new development so the suburbs with higher turnover are outer suburbs of the city with larger lot sizes and lower prices.

Northern Territory

3 of the 5 suburbs with the highest turnover are outside of Darwin.  Fannie Bay is a well-established suburb while Durack is a relatively new development area.  The remaining 3 suburbs are all located in Alice Springs.

Australian Capital Territory

Coombs, Casey and Bonner are all outer suburbs of Canberra that have seen high levels of new housing development in recent years.  Pearce and Dickson are more established housing markets, Dickson in particular is seeing more housing density enter the local market.

Looking at the suburbs nationally with the lowest share of housing stock sold over the past year, the list is a mixture of capital city suburbs and regional areas, with a large representation from regional areas associated with the mining sector where housing demand has been impacted by low demand.  Dandenong South in Melbourne had the lowest turnover in the nation with just 0.4% of total housing stock transacting over the year.

Suburbs with the lowest levels of turnover,
12 months to February 2018

CoreLogic Suburbs with the lowest levels of turnover

New South Wales

3 of the 5 suburbs with the lowest turnover in NSW were in Sydney with the regional town of Kempsey and North Arm Cove north of Newcastle also making the list.  Interestingly the suburb of Sydney is on the list indicating very low turnover of units over the year.

Victoria

3 of the 5 suburbs with the lowest turnover are in Melbourne with the large regional cities of Ballarat and Bendigo also making the list.  Brunswick East is relatively close to the city centre while the other 2 Melbourne suburbs are on the outskirts of the city.

Queensland

Each of the suburbs with the lowest turnover are outside of Brisbane and outside of the south-east corner of the state.  Kin Kora in Gladstone is the only suburb listed in a large population area with the other suburbs in agricultural or mining regions where turnover has likely been impacted by low demand due to sharply falling prices.

South Australia

4 of the 5 suburbs listed are located in Whyalla, a town closely linked with the resources sector where market conditions have been challenging. Wallaroo is a lifestyle suburb located on the Copper Coast of SA.

Western Australia

Only 1 of the 5 suburbs listed is located in Perth.  Tom Price and Derby are suburbs linked to the resources sector where housing demand has been impacted by sluggish labour markets and falling housing prices.  Lancelin is described as a fishing village north of Perth and Merredin is an agricultural town.

Tasmania

3 of the 5 suburbs are located in Hobart and all 3 are located close to the city centre.  Norwood is a suburb of Launceston while Smithton is a coastal lifestyle market.

Northern Territory

All of the 5 suburbs listed are located in Darwin.  3 of the 5 suburbs are located within the Darwin council area with the remaining two in the Palmerston region of the city.

Australian Capital Territory

3 of the 5 suburbs listed are located within the Belconnen district and are well established suburbs.  The remaining 2 (Ainslie and City) are in the city centre.

Despite the population growing rapidly and a near record high number of properties under construction, turnover is generally expected to remain low.  In fact, turnover nationally may fall even further given that a number of cities are now seeing values decline and credit conditions are generally tighter.