Residential Resales

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<p>The off the plan buyer of a sub-penthouse in Sydney’s Loftus Lane development has scored a big resale as the project nears completion.</p>

<p>The sub-penthouse A603 in the luxury project near Sydney Harbour sold for $5.4 million, having been snapped up at the sales launch back in mid-2017 for $4.975 million direct from the developer AMP Capital.</p>

<p>Ayre Real Estate director Craig Donohue sold the apartment to a Northern Beaches local who had been looking for a Sydney CBD base for around 12 months.</p>

<p><a href="https://www.urban.com.au/new-apartments/loftus-lane-8-18-loftus-street-sydney"><img alt="" height="889" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/8_loftus_lane_circular_2.jpg" width="1200"></a></p>

<p>Donohue said the buyer was shown a few apartments in established and other new developments in the CBD but Loftus Lane's location was a stand out.</p>

<p>"He also loved the fact that this property had a substantial and very usable outdoor space and was really impressed with the design of the building", Donohue said.</p>

<p>Due to settle in April, 8 Loftus Lane has been designed by Studio Bright and will comprise 106 apartments across three Art Deco-style buildings.</p>

<p><a href="https://www.urban.com.au/new-apartments/loftus-lane-8-18-loftus-street-sydney"><img alt="" height="730" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/8_loftus_2.jpg" width="1200"></a></p>

<p>Loftus Lane is part of Quay Quarter Sydney, the dynamic new neighbourhood and major redevelopment of two complete city blocks up near Circular Quay.</p>

<p>When the apartments hit the market in mid-2017, they all sold out within two hours of the launch.</p>

<p>Donohue says there is strong buyer demand for luxury apartments in the CBD.</p>

<p>“The Sydney CBD landscape is changing from a business district to a luxury world class lifestyle hub”, Donohue says.</p>

<p>“As the new developments come closer to completion, buyer can not only see what the final product looks like, but also plan to take occupancy this year which is generating lots of excitement”.</p>
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Ayre Real Estate director Craig Donohue, who sold the apartment, says there is strong buyer demand for luxury apartments in the CBD.

Joel Robinson

Off the plan buyer success in Sydney’s Loftus Lane development

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<p>Despite a slowing property market, the vast majority of home sales (nine out of 10) in Australia are still turning a profit for their vendors, according to CoreLogic's latest quarterly Pain &amp; Gain Report.</p>
<p>Across the nation, 91.1% of all properties that resold in the December quarter went for a price above their previous purchase price.</p>
<p><span>Investors are more likely to sell properties at a loss than owner-occupiers, according to the new CoreLogic report.</span></p>
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<p>The quarterly CoreLogic Pain &amp; Gain report tracks home sales across Australia and reveals the proportion of sales being sold at a profit versus those being sold at a loss.</p>
<p>Over the three months to December 2017, 91.1% of all properties that resold transacted at, or above, their previous purchase price.</p>
<p>The 91.1% figure was up slightly from 90.9% at the end of the third quarter of 2017 but slightly lower than the 91.3% over the final quarter of 2016.</p>
<p>CoreLogic recorded a reasonable gap between the proportions of houses reselling for a gross profit; 92.3% of all resales, while 88.2% of all unit resales were at a profit.</p>
<p>Research analyst Cameron Kusher said with property values continuing to increase over the final quarter of 2017, albeit at a more moderate pace, the proportion of properties resold at a profit has continued to climb.</p>
<p>Profits earned from property resales over this period totalled $17.832 billion.</p>
<p>By comparison the resale losses amounted to just $442.0 million in realised losses. The analysis found that the vast majority of the $17.832 billion in profit was generated by Sydney and Melbourne and accounted for 33.1% and 29.4% of total profits respectively. As a comparison, these two cities accounted for just 11.3% and 6.6% of the total value of losses nationally over the quarter. Across the nation, a higher proportion of houses are resold at a profit than units.</p>
<p>According to Kusher, this trend was also replicated across the combined capital city and combined regional markets. Sydney was the only region to record a greater proportion of units resold for a profit over the quarter than houses, although Hobart had an equivalent share for houses and units. (refer breakdown in attached report)</p>
<p>“Over recent years, value growth for units has substantially underperformed that of houses, as a result in most regions of the country a higher proportion of houses resold for a profit than units,” Mr Kusher said.</p>
<p>In Melbourne, units were almost 10 times more likely to resell at a loss than houses while in Brisbane units were almost 9 times more likely to resell at a loss than houses. In Canberra units were 7.4 times more likely to resell at a loss than houses.</p>
<p>For the capital cities, the proportion of houses reselling at a gross profit was higher over the quarter in Brisbane, Adelaide and Darwin but lower elsewhere. For units, there was a higher proportion of resales at a profit over the quarter in Sydney, Melbourne, Adelaide, Hobart and Canberra.</p>
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<p>In the regional housing markets, the proportion of houses reselling for a profit increased over the quarter in Regional NSW, Regional Vic, Regional WA and Regional Tas. For units, profit-making resales increased over the quarter in all regions except for Regional NT.</p>
<p>The regions now showing the lowest proportion of resales at a loss are those surrounding Sydney and Melbourne. At the other end of the spectrum, three regions, all of which are linked to the resources sector, recorded at least half of all resales at a loss over the quarter. The regions nationally with the highest proportion of resales at a loss are typically linked to the resources sector. It should be noted that in many of these regions the share of losses is now lower than at the peak however instances of loss remain elevated; a reflection that housing values remain well below their peaks in these areas.</p>
<p>Investors continued to be more likely to resell their properties at a loss than owner occupiers during the final quarter of 2017. Over the quarter, 7.5% of owner occupied properties sold at a loss compared to the 11.3% of investor owned properties. Sydney was the only major region of the country in which a higher proportion of investors resold their property at a loss than owner occupiers.</p>
<p>93.9% of capital city properties resold by owner occupiers transacted at a profit over the December 2017 quarter compared to 90.7% of investor owned properties. Throughout all capital cities the gap in profit making-resales between owner occupiers and investors was not that large however, across individual cities the results were much more varied. Melbourne investors were 4 times more likely to resell a property at a loss than an owner occupier, in Brisbane investors were 2.6 times as likely to sell at a loss and in Canberra they were 5.2 times as likely to sell for a loss.</p>
<p>Across the regional areas of the country, investors were much more likely to resell a property for a loss (15.3%) than owner occupiers (9.8%). While in each region owner occupiers were more likely than investors to resell for a profit, the gap between the two vendor type performances was nowhere near as great in regional areas as what was recorded in some capital city markets.</p>
<p>Kusher said clearly any property owner will aim to make a profit from the sale of their property.</p>
<p>“In a falling market owner occupiers may be more prepared to sell at a loss if they are purchasing their next home at an equivalent or greater discount. Meanwhile, investors, because of taxation rules, would seemingly be more prepared to incur a loss because they, unlike owner occupiers, can offset those loses against future capital gains.”</p>
<p>“If home values fall, investors may be more inclined to sell at a loss and offset those losses which in turn could result in much more supply becoming available for purchase at a time in which demand for housing falls because values are declining.”</p>
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<p>“More up-to-date dwelling value data has shown that in most capital cities dwelling values have been falling over recent months while regional values have continued to increase, albeit at a slower pace. These trends are expected to continue in 2018 and given that it should be expected that the proportion of properties reselling at a profit may begin to reduce over the coming quarters,” he said.</p>
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jrobinson-rf4aSBido9

Nine out of 10 resales show profit despite slowing market: CoreLogic

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<p>Over the March 2016 quarter, 9.2 percent of all apartments in capital cities resold recorded a gross loss when compared to their previous purchase price according to CoreLogic.</p>
<p>The report said over the first quarter of 2016, 6.9 percent of capital city properties resold at a loss compared to 13.1 percent of regional properties.</p>
<p>"Over the past quarter, the proportion of loss making resales has increased from 5.6 percent at the end of 2015 across the combined capital cities and fallen from 13.4 percent in regional markets. In fact, regional areas of the country have just recorded their lowest proportion of loss-making resales since the three months to July 2011," it said.</p>
<p><a href="/images/2016/06/30/Screen%20Shot%202016-06-30%20at%2011.49.03%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/06/30/Screen%20Shot%202016-06-30%20at%2011.49.03%20AM.png" alt=""></p>
<p>CoreLogic's Cameron 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.</p>
<p>"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,” he said.</p>
<p>"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.</p>
<p>"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."</p>
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jonathanchancellor-7SQnKwU6yx

One in nine apartments selling for a loss with Melbourne even higher: CoreLogic

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<p>The vast majority of property owners who sold their home in the December 2015 quarter sold at in excess of their previous purchase price according the latest CoreLogic RP Data quarterly Pain and Gain Report.</p>
<p>The Pain &amp; Gain Report found that 91.6 per cent of properties resold for profit over the quarter with 31.2 per cent of homes selling for more than double their purchase price. The total value of all profit was $17.1 billion with the average gross ‘gain’ $270,842 per sale.</p>
<p>Only 8.4 per cent of homes resold recorded a gross loss compared with their original purchase price, up slightly from 8.3 per cent for the September quarter. The total value of loss over the quarter was $399 million. The average ‘pain’ felt for these properties was $69,493.</p>
<p>Report author Cameron Kusher said, “Whether for investment or owner occupation, the results highlight the fact that property ownership should be seen as a long-term investment.”</p>
<p>“Across the country, our results show that homes which resold for a loss had an average length of ownership of 6.7 years. For gross profit sales, the average length of ownership was recorded at 10.1 years, while homes which sold for more than double their previous purchase price were owned for an average of 17.7 years.</p>
<p>“Our results have shown that investors over owner occupiers were more likely to resell their properties at a loss. Over the quarter, 7.2 per cent of owner occupier sales nationally were at a gross loss compared to 10.6 per cent for investor owned stock.</p>
<p>“The losses experienced by investors comes down to the fact that this group may be more willing to accept a loss on sale due to the tax implications of being able to offset the loss against future capital gains,” he said.</p>
<p>The Pain &amp; Gain report findings also confirmed a proportion of loss-making resales across the national capitals are now trending lower expect for Perth and Darwin where the instances of losses are increasing.</p>
<p>Mr Kusher said, “The trends reflect the fact that over the past year, home values have increased in all capital cities other than Perth and Darwin. Not so surprising is the result for Sydney and Melbourne; both cities have seen significant increases in home values over recent years and therefore, fewer loss-making resales occurred compared with other capital cities.”</p>
<p>Within the regional areas of the country the proportion of loss-making resales is higher than those within the capital cities. The proportion of loss-making resale’s is currently trending  lower in Regional NSW, Regional Queensland,  Regional Tasmania and is fairly flat in Regional Victoria and higher elsewhere.</p>
<h3>Proportion of total resale’s at a loss/gain, houses vs. units, December 2015</h3>
<p><img src="https://www.corelogic.com.au/contentAsset/raw-data/79129a89-3943-431a-83c8-5264415a2fce/fileAsset" alt="2016-03-24--Pain_Gain" width="600" height="438"></p>
<p>Mr Kusher said, “Capital city housing markets continue to record a lower proportion of loss-making resales than regional areas of the country. We’re seeing the trend shifting in regional areas with the proportion of loss-making resales trending lower particularly in areas linked to tourism and lifestyle factors.</p>
<p>“Housing markets linked to the resources sector are generally seeing an increase in loss-making resale’s after housing market conditions in many of these locations have posted a sharp correction,” he said.</p>
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jchancellor-FAypfDUnLy

The worst regions for loss making property sales: CoreLogic RP Data pain gain report

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<p><span>Across Darwin over the three months to September 2015, 16.9 percent of homes resold at a loss compared to 17.2 percent at the end of the previous quarter and 9.4 percent a year ago, according to the most recent CoreLogic RP Data Pain &amp; Gain report. </span></p>
<p><span>The relatively less developed Litchfield region has recorded no loss-making resales over the quarter compared to 15.9 percent in Palmerston and 19.5 percent in Darwin. </span></p>
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