CoreLogic’s Pain and Gain report for the June 2015 quarter unveils interesting developments for the country’s property market.
The study suggests that there are fewer loss-making resales (particularly in capital cities), continuing a trend that has sustained in the last few months.
Notably, the report discovered that 30.8% of resales doubled profits for owners over the quarter based on the previous purchase price of the property.
Throughout the country, the homes that were sold at a loss were owned for an average of 5.3 years.
The average length of ownership among those looking to profit from the resale of their property was 9.9 years, and those homes which sold more than double their previous purchase price had an average ownership period of 16.4 years.
“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,” said Cameron Kusher, senior research analyst at CoreLogic RP Data.
Kusher goes on to describe that the proportion of loss-making sales in regional areas is higher than that of capital city housing markets.
“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,” he said.
In addition, Kusher points out that housing markets related to the resources sector are seeing an increase in loss-making resales following a sharp correction in housing conditions in such locations.
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