Almost 32 per cent of homes sold during the September and December period last year reached a price that was more than double the original purchase amount, according to new figures by RP Data.
In comparison, 13 per cent of all homes sold were transacted at a price lower than their previous purchase price.
Over the three months the loss totalled up to $482 million while the total profit was $10.2 billion.
“The result highlights that the vast majority of vendors are making a gross profit on the sale of their home and often that profit is significant,” wrote RP Data research analyst Cameron Kusher.
“The recent improvement in their proportion of loss making sales can be attributed to the subtle improvement in housing market conditions of recent times,” Mr Kusher said.
Queensland recorded the highest proportion of homes sold at a loss over the quarter, which reflected the recent weakness in housing market conditions across the state.
On the other hand, Western Australia recorded the greatest proportion of home sales that more than double the original purchase price.
Mr Kusher explained that this was significant as both markets had underperformed over the past five years.
“[It] highlights once again if owners can ride out the short-term market volatility they have historically made quite significant capital gains from the housing market.”
RP Data’s report also found the shorter a property was held, the more likely it was to be sold for less than the original purchase price.
“This highlights the long-term nature of property investing but is also reflective of comparatively weaker market conditions over recent years,” Mr Kusher said.
Homes that had been sold for more than double their previous purchase price had been owned for an average of 15.3 years. Across the individual states, the average hold ranged from eight years in the Northern Territory to 17.8 years in Victoria.
Mr Kusher anticipated that housing would continue to be a solid long-term investment asset class but capital gains would likely be more moderate over the coming years.