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The Australian property market is still going strong, with nine out of 10 Australian homes sold still turning a profit for vendors, new CoreLogic data shows.
Data from CoreLogic’s latest Pain and Gain Property Report reveals that, in the last quarter of 2017, 91.1 per cent of all properties resold transacted at or above their previous purchase price.
The figure is slightly lower than the 91.3 per cent recorded in the final quarter of 2016 but is up from 90.9 per cent in the third quarter of 2017.
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.”
Profits earned from resales in the last quarter totalled over $17.832 billion across the country, while resales losses only amounted to $442 million.
Over half of the quarter’s profits generated were from the Sydney and Melbourne markets, which accounted for 33.1 per cent and 29.4 per cent of the profits, respectively.
These same cities accounted for just 11.3 per cent and 6.6 per cent of the total losses in that same period.
CoreLogic’s figures also showed that 92.3 per cent of all house resales turned a profit, while only 88.2 per cent of unit resales earned a profit.
Sydney was the only region to record a greater proportion of units resold for a profit. In Brisbane, units were almost nine times more likely to resell at a loss than a house. In Canberra, units were 7.4 times more likely.
Mr Kusher said that this trend was replicated across the combined capital city and regional markets.
“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.
In capital cities, houses that resold at a profit over the quarter were higher in Brisbane, Adelaide and Darwin but lower elsewhere.
For units, however, profitable resales were higher in Sydney, Melbourne, Adelaide, Hobart and Canberra.
Regional NSW, VIC, WA and TAS all recorded increased profits for house resales over the quarter, and all regional markets, except the Northern Territory, recorded higher profit resales for units as well.
The regions around Sydney and Melbourne showed the lowest loss resales, while the regions with the highest proportion of resale losses were all linked to the resources sector.
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