- 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.