Property Pain & Gain results released today

A key highlight emanating from the report is that around one third (31.9%) of homes resold for more than double their previous purchase price.

CoreLogic today released its latest Pain and Gain Property Report which measures the profits and losses of sellers by comparing the most recent sale price to the previous sale price; it shows where profits were earned and losses were made.

A key highlight emanating from the report is that around one third (31.9%) of homes resold for more than double their previous purchase price.

March 2016 quarter highlights

  • 9.2% of homes resold recorded a gross loss on previous purchase price, up from 8.3% at the end of 2015 and also higher than the 8.8% recorded 12 months ago;
  • Total value of dwellings which resold at a loss over quarter was $362 million with an average loss of $66,073;
  • One third (31.9%) of homes resold for more than double their previous purchase price;
  • Total value of homes which resold at a profit, was recorded at $12.9 billion with the average gross profit recorded at $239,855;
  • 6.9% of capital city properties resold at a loss compared to 13.1% of regional properties;
  • 5.8% of capital city house resales and 9.4% of unit resales were at a price lower than the previous purchase price;
  • 11.2% of combined regional market houses and 19.2% of units resold for less than their previous purchase price;
  • Proportion of loss-making resales over March 2016 quarter across each capital city was recorded at: 2.1% in Sydney, 5.5% in Melbourne, 7.7% in Brisbane, 9.3% in Adelaide, 16.3% in Perth, 10.2% in Hobart, 21.1% in Darwin and 9.8% in Canberra.

Proportion of total resales at a loss/gain, houses vs. units,
March 2016 Quarter

2016-06-28-pain-and-gain

Resales & Property Ownership 

As the findings show, there are some differences between capital city and regional market for homes sold over the quarter.

Across the combined capital cities, homes sold at a loss over the quarter had been owned for an average of 5.4 years compared to 10.1 years for homes sold at a gain and 17.2 years for those homes which sold for more than double their previous purchase price.

The combined regional markets recorded a 6.8 year average for homes resold at a loss over the quarter compared to a 10.2 year average for homes sold at a gain and 18.1 years for homes sold for more than double their previous purchase price.

Commenting on the results, CoreLogic research analyst Cameron Kusher said, “Property ownership, whether for investment or owner occupier purposes, should be seen as a long-term investment.”

City vs. Regional Area Markets

Capital city housing markets recorded a lower proportion of loss-making resales than regional areas of the country.

Mr Kusher said, “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 elevated level of loss-making resales after housing market conditions in many of these locations have posted a sharp correction.”

Nationally there was $361.0 million in realised losses over the quarter at an average of $66,073 and $12.9 billion in realised profit at an average of $239,855. Across the capital cities, there were $187.0 million in losses with an average of $72,042 per loss-making resale compared to $10.2 billion in profit at an average of $294,045. The combined regional areas recorded $174.7 million in losses at an average of $60,689 compared to $2.7 billion in profit at an average of $140,992. The average losses were greater in the capital cities; however they also generally experienced much greater profits, more than double those in regional areas.


ENDS.


For inquries contact media@corelogic.com.au


About CoreLogic

CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell. With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 4.4 billion decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information.

With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au.

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