Australian Property Resale Trends Decoded

New study reveals reasons behind high rates of property re-listing in Australia

A recent analysis conducted by Suburbtrends, a leading Australian real estate analytics firm, has shed light on the reasons why homeowners in different states are re-listing their properties within just two years of purchase. The findings indicate significant regional variation, with Queensland leading the pack at 9%, followed by Tasmania at 8%, South Australia at 7%, New South Wales and Western Australia both at 6%, Northern Territory at 5%, Victoria at 4%, and Australian Capital Territory at a low of 3%.

Kent Lardner, founder of Suburbtrends, explains that the reasons for re-listing properties vary, with the top 10 reasons including job relocation, financial stress, lifestyle changes, real estate investment, market appreciation, neighbourhood dissatisfaction, property defects, changes in interest rates, inheritance, and overestimation of affordability. Kent notes that "these factors are not unique to any one state, but their impact may vary across regions."

In Queensland, the high rate of re-listing could be attributed to a combination of factors, such as the state's dynamic job market and attractive real estate investment opportunities. "Queensland's rapid development and economic growth have created a climate where job relocation and investment in real estate are more prevalent," says Kent.

On the other end of the spectrum, the Australian Capital Territory's low re-listing rate may reflect the stability of its employment market, driven by a large public service sector, as well as a generally high level of satisfaction with the region's infrastructure and amenities. Kent suggests that "the ACT's unique environment fosters stability, making it less likely for homeowners to re-list their properties within a short period."

Impact on real estate agents:

These insights into property re-listing trends highlight the importance of real estate agents maintaining strong relationships with clients who have recently purchased properties. "Given that 3% to 9% of homeowners resell within two years depending on the state, agents can capitalise on this opportunity by staying in touch with their past clients," Kent advises.

This also emphasises the importance of understanding the property market and homeowners' behaviours in developing effective marketing strategies for real estate agents. He states, "With around 70% of homeowners holding onto their properties for 10 years or more before listing, it's crucial for real estate agents to prioritise this group in their marketing efforts. By targeting long-term homeowners, agents can optimise their resources and focus on those who are ready to sell."

This highlights the importance of leveraging recent sales data to engage potential clients according to Kent. "Homeowners considering selling their properties pay close attention to recent sales, particularly those involving houses similar to their own. Agents should capitalise on this by using direct mail to share information on recently sold properties with targeted homeowners. Direct mail has experienced a resurgence in popularity in recent years, thanks to the complexity and rising costs of digital ads, making it an effective and impactful marketing tool for real estate professionals."

Kent Lardner, founder of Suburbtrends, boasts an extensive background in property data and analytics, dating back to 1999 when he began working in lenders mortgage insurance at GE. While heading up the valuation services team, Lardner honed his skills in statistics and worked alongside industry experts from the United States and Canada. Kent's expertise played a pivotal role in designing the PriceFinder platform, where he was one of the original founders. After PriceFinder was acquired by the Domain Group, Kent transitioned to a leadership role at CoreLogic, overseeing the analytics team and product development for the banking sector. His work involved designing and implementing various risk products for valuers and banks, including an automated valuation model for the Industrial and Commercial Bank of China (ICBC), the world's largest bank. Now, Kent focuses on Suburbtrends, a leading real estate analytics firm in Australia. His insightful reports are frequently published by major media outlets, and the Suburbtrends suburb map product is trusted by over 5,000 investors and professionals in the industry. With this recent study on property re-listing trends, Kent continues to provide valuable information and analysis to help real estate professionals make informed decisions in today's competitive market.