Property resales bring in $20.9bn in profit

July 10, 2017

Across the country, property resellers earned $20.6bn in profit by putting their homes and apartments on the market during the March quarter.

CoreLogic’s most recent Pain & Gain report examined property resales during this time period and found that 90.4% of those who resold their property earned a profit – with the median profit sitting at $185,000.

In contrast, there was $493.8m worth of losses during the March quarter with the average median loss at $35,000 per resale.

The report compared the most recent sale price to the previous sale price to determine the ultimate gross profit or loss.

Looking at each capital city, the total proportion of houses and apartments sold at a profit were as follows during the March quarter:

  • Sydney (97.8%)
  • Hobart (95.4%)
  • Melbourne (95.3%)
  • Adelaide (92.5%)
  • Brisbane (90.8%)
  • Canberra (90.4%)
  • Perth (76.8%)
  • Darwin (63.0%)

The top resellers in regional areas of Australia include the Southern Highlands and Shoalhaven (98.8%), Illawarra (98.6%), Newcastle and Lake Macquarie (98.2%) and Geelong (97.3%).

Regional losses mostly came from areas linked to mining and resources with 11.1% of houses sold for less than their original purchasing price in these locations. This was marginally higher than the 11.0% recorded in the December 2016 quarter and the 10.9% recorded in March 2016.

“There is still a relatively high proportion of units in regional Australia reselling at a loss (17.2%). However, the proportion of loss making unit sales has shifted substantially lower as lifestyle markets see buyer demand rebounding and mining regions approach the bottom of their cycle,” said CoreLogic report author Cameron Kusher.

At the end of last year, 17.9% of regional units had resold at a loss while in March 2016 this was higher at 19.7%. The 17.2% recorded in the March quarter this year was the lowest since the 2010 December quarter.

“While the proportion of loss making sales has started to reduce in some of these regions, there remains a high willingness from home owners to sell up coupled with little demand to purchase. As a result we are seeing a high proportion of vendors materialising their losses,” Kusher said.

source:brokernews.com


Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.

Contact Us

1300 805 221

Better Choice