RESIDENTIAL PROPERTY
HIGHER interest rates, mortgage repayments and cost-of-living has seen the rate of loss-making short-term resales increased markedly to almost...
The CoreLogic Pain & Gain report analysis of 83,000 resales in the June quarter found the portion of loss-making short-term resales increased to...
At the same time, the rate of profit-making sales increased for the first time in a year, to 92.8% of resales – up 40 basis points from...
Of the loss-making resales held for up to two years, the median loss was $30,000, compared to a median profit of $75,000 for nominal gains within...
CoreLogic Head of Research and report author Eliza Owen said a deeper dive into the performance of resales within a two-year period highlights more...
The report found owner occupiers have incurred the most short-term nominal losses at 72.1%, as opposed to 27.9% by investors, a similar split to the...
“Two years is a significant time period because we are two years on from the height of pandemic-related lockdowns, low interest rates, and have just passed the...
“The portion of homes sold within just two years increased by one percentage point to 8.5% over the past year, however the portion of...
The median gains from resale were $290,000 in the quarter, and the total nominal profit from resales were $25.8 billion. The median losses from...
Among the capital cities Darwin had the highest volume of loss-making resales at 34.4%, followed by Perth at 12.3%. Adelaide was the most...
Owner occupiers continued to see a far greater rate of profitability than investors, at 96.3% compared to 88.3% of investors. Meanwhile the...
Interestingly more people are flocking back to the city. The report found an unusually high portion of short-held regional properties resales...
“Around one in 10 regional Australian property sales were held for only up to two years. A further breakdown of this data by SA4 regions shows some...
“Despite a relatively short hold period for a high portion of resales, the regions remained profitable for sellers. In the June quarter, 91.9% of...
Owen said both houses and units saw an increase in the level of profit-making sales nationally, though unit sellers incurred a nominal loss from resale around...
“Only 3.5% of house sales made a nominal loss, down from 3.8% in the previous quarter. The rate of loss-making house sales has remained fairly...
“The unit sector has seen a lot more weakness in profitability through the recent housing downturn, with 14.4% of unit resales making a nominal loss...
“The rate of profit-making sales tends to follow capital growth trends. With home values continuing to rise through July and August, we estimate the...