Tuesday 29 September, 2015: Australia’s biggest winners and losers across capital city and regional property markets over the June 2015 quarter, were today released in the latest CoreLogic RP Data Pain and Gain property report - www.corelogic.com.au
The Pain and Gain report revealed that 30.8% of resales earned a doubling in profits for owners over the quarter which was based on the previous purchase price of the dwelling, while the proportion of loss-making resales rose..
To further illustrate Mr Kusher’s point, for resales incurring a gross loss over the December quarter, the average length of ownership was just 5.9 years. Properties that recorded a gross profit were held for an average of 10.2 years, while those homes that resold for more than double the previous purchase price were owned for an average of 16.8 years.
Across the country:
- Homes that resold at a loss were owned for an average of 5.3 years.
- For those to profit from a resale, the average length of ownership was 9.9 years.
- Homes which sold for more than double their previous purchase price were owned for an average of 16.4 years.
Mr Kusher said, “We’ve seen the proportion of loss-making resales continue to trend lower over recent months which are mirroring broader housing market conditions where values generally continue to rise.
“Across the country’s regional areas, the analysis shows that proportion of loss-making resales is higher than those within the capital cities and trending lower in Regional NSW and fairly flat in most other areas except for Regional SA, Regional WA and Regional NT where loss-making sales are trending higher.”
Overall, Mr Kusher noted that the capital city housing markets continued to record a much lower proportion of loss-making resales than regional areas of the country.
“The trends in regional areas are shifting with the proportion of loss-making resales trending lower in areas linked to tourism and lifestyle.
“On the other hand, housing markets linked to the resources sector are generally seeing an increase in loss-making resales after housing market conditions in many of these locations have posted a sharp correction.”
- Dwellings losses over the quarter amounted to $411.3 million; an average loss of $65,585 per sale.
- Profit-making resales recorded a healthy $16.1billion, grossing owners $259,174 in profit.
- While 9.1% of resales were transacted at a loss, the vast majority (90.9%) of properties resold over the quarter did so at a profit and 30.8% of homes resold for more than double their previous purchase price.
- 9.1 % of all homes resold of the June quarter recorded a gross loss when compared to their previous purchase price, and slightly higher than the results for the March 2015 quarter at 8.9% and a slightly higher result than the 8.6% recorded over the June 2014 quarter.
- Sydney remains as the only capital city housing market in which units had a lower proportion of resales at a loss (1.8%) than houses (2.2%) over the quarter.
- For the capital city and regional markets, the lowest proportions of loss making resales are currently found in: Sydney (2.0%), Melbourne (5.7%), Perth (8.6%) and Regional Vic (8.6%).
- The highest proportions of loss making resales were recorded in: Regional WA (24.5%), Regional Qld (22.5%), Regional SA (20.9%) and Regional Tas (19.9%).
- During the second quarter of 2015, 7.7% of houses resold for less than their previous purchase price compared to 12.6% of unit resales.
- Across the capital cities, 5.0% of houses resold at a loss compared to 8.4% of units and in regional markets 12.5% of houses resold at a loss compared to 23.8% of units.
Contact: [email protected] or Mitch Koper on 0417 771 778
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