Greater Adelaide sees an increase in dwelling values: CoreLogic Pain & Gain report
Adelaide has seen an increase in the portion of profit making resales, with 9.2% of properties seeing a nominal decline in the sale price, according to the recent CoreLogic Pain and Gain report.
The report notes the June quarter was a reversal of the trend seen in the March quarter, where loss making sales had trended up to 9.9% of resales.
The increase in profitability was faster across houses, which saw a 70 basis point increase in the rate of profit making sales from the March to June quarter, as opposed to a 20 basis point increase across units.
93.2% of houses saw a nominal increase in price in the June quarter, compared with 79.9% of units.
The portion of loss making sales was highest across the Adelaide (21.6%), Playford (21.6%) and Mallala (21.4%) LGA regions, the report notes.
Click here to enlarge:
Source: CoreLogic Pain and Gain report
The vast majority of loss making sales across the Adelaide LGA were investor-owned units, which may have been prompted by a decline in unit rent values since the onset of the pandemic.
However, loss making sales were more varied in characteristics across Playford, and loss making sales across Mallala were off a very low base (13 sales).
Mount Barker saw the highest level of profitability, with just 2.9% of properties selling for less than the previous sale price in the June quarter.
Click here to enlarge:
Source: CoreLogic Pain and Gain report
Greater Adelaide has seen an increase in dwelling values since the onset of the pandemic.
This historically steady market will likely only see further rates of profitable sales in the second half of 2020, aided by low mortgage rates and greater consumer confidence amid low COVID case numbers, the report noted.
