Canberra's property sale profits are some of the highest in the country, according to the Domain Tenure and Profit report

Canberra home owners are holding onto their properties for longer than ever before, a new report has revealed. And when they sell a house, their median profit is among the largest in the country, second only to that of Sydneysiders – and not by much.

The length of home tenure in all capital cities was trending longer, the DomainTenure and Profit research paper, released this week, showed. This year, in Sydney and Canberra, people stayed in houses for an average of 10 years – up from eight years in 2013. In Melbourne and Brisbane, the number was nine years (up from eight) and in Perth for 10 years (up from seven).

The report showed that a longer tenure usually led to owners selling for a bigger profit, especially in markets with rising values.

Canberra’s median profit on house sales in 2023 was $409,550 – just $450 less than Sydney’s median house sale profit, which was the largest nationwide at $410,000. What’s more, South Canberra and Sydney’s Baulkham Hills were tied for the areas with the largest median profit in the country – both at $600,000.

But Domain chief of research and economics Dr Nicola Powell said that despite longer tenures usually meaning larger profits, the trend of staying put for more time would worry governments.

“It shows that people might not be moving as often to homes that meet their needs, with empty-nesters staying in oversized homes and not releasing them for young families who need them,” Powell said.

“Also, young couples might be trying to buy homes with more bedrooms than they need today in the prospect of, at some time in the future, having children. Further, it means the workforce is likely to be a whole lot less mobile.”

Canberra’s tenure for units was steady, remaining at six years over the decade. However, profits have increased significantly in that time – from $87,000 to $150,000 – now the largest median unit profit nationally.

The shortage of stock on the market of every type of home – from houses to townhouses, units to villas – and not enough of the right size in the right location being supplied by developers was a major difficulty for many people looking to buy a home, Powell said.

She advised home owners to consider their property needs carefully and take a longer-term view.

“People tend to get caught up in property price cycles when they should be looking at the longer term where most dwellings sell for a profit,” she said.

“Some people have strong emotional ties to their homes, but we have to ask, are we creating the right types of dwellings in the right areas and enabling people to downsize and stay in their preferred location? The next generation needs some of these big family homes, and that really speaks to the housing crisis.”