Resale profit strong in capital city markets: CoreLogic RP Data
CoreLogic RP Data's Pain and Gain report for the June quarter found capital city housing markets continue to record a much lower proportion of loss-making resales than regional areas of the country.
CoreLogic RP Data research analyst Cameron Kusher said 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.
"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.
“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.”
According to the report, dwellings losses over the quarter amounted to $411.3 million; an average loss of $65,585 per sale. 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.
