Hobart Tasmania
Hobart is the most profitable city for residential resales, according to Core Logic data. Image – Canva
  • Nationally, total gains from resales rose to $31.9 billion
  • Combined loss from resales decreased to $1 billion
  • 51.4% of Darwin resales resulted in a loss

Data from Core Logic’s Pain and Gain report shows that of the around 98,000 residential property resales that occurred during the December quarter last year, the overwhelming majority resulted in profits for sellers.

More specifically, 89.9% of transactions saw a nominal gain for sellers, according to Eliza Owen, Core Logic’s Head of Research.

“As property values rose across each state and Territory through the December quarter, buoyed by a cash rate reduction through November, the value of profits also increased substantially.”

“Total gains from resales in the December quarter rose to $31.9 billion, up from $24.8 billion in the previous quarter.”

Eliza Owen, Core Logic Head of Research

Ms Owen also added that combined loses from resales decreased over the quarter by $200 million from $1.2 billion to $1 billion.

According to CoreLogic, the results are significant given that sales volumes saw an uplift driven by transaction activity increasing in Melbourne after extended lockdowns. Melbourne in particular recorded 94.3% of sales turning a profit during the December quarter – an increase of 1.3% compared to the September quarter.

Notably, the profitability in Australian dwellings is above pre-pandemic levels. For example, the three months to February 2020 saw a profitability rate of 87.9%.

Hobart had the highest profitability score of the capital cities at 97.2% – up from 96.7% in the September quarter.

On the other end of the scale, Darwin had the lowest. The Top End capital city recorded 51.4% of properties were sold at a loss. Although this is a relatively high proportion, it had fallen from 50.6% in the previous quarter.

CoreLogic estimates sales volumes increased by 23.6% through the December quarter.

Also referred to in the report was the median hold periods. For sales that represented a profit, the median was 9.2 years whilst for loss-making sales this was 6.9 years.

You May Also Like

Australian home values hit a new high in November, marking a V-shaped return to form

November marks a triumphant return for Australian home values, soaring to unprecedented heights, signaling a robust market rebound.

More properties are selling below estimated prices

Properties are selling below estimates in all states suggesting that buyer sentiment has declined

Residential prices, volumes expected to decline in 2023: HTW

Once inflation and interest rates peak, greater consumer confidence should stabilise the residential property market in late 2023.

Perth property prices keep climbing

Perth remains the most affordable capital – appealing to investors

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.