26 Sep A record median profit of $285,000 when reselling property in Australia

Australian property achieved a record median gain of $285,000 from resales in the June quarter, the highest since the early 1990s. CoreLogic’s Q2 2024 Pain & Gain report analysed around 91,000 resales, showing that 94.5% of transactions resulted in a profit. Overall, $31.8 billion in gains were recorded, a 7.7% increase from the previous quarter.

Eliza Owen, CoreLogic’s Head of Research, attributed the gains to rising national housing values, with sellers capitalising on stable mortgage conditions. Brisbane led the market with a 99.1% profit-making sales rate, followed by Adelaide at 98.7%, and Perth at 95.4%. Meanwhile, Darwin and Hobart saw the largest increase in loss-making sales, while Sydney and Melbourne ranked among the least profitable cities.

Owen expects profit-making sales to continue rising but warns of potential challenges ahead, including high interest rates and affordability pressures, which may test buyer demand.

On the downside, the median loss from resale was $40,000, with units in Sydney and Melbourne accounting for a large share of these losses. However, Owen noted that a -6.8% resale loss remains relatively small.

Houses remained more profitable than units, with a 97.2% profit-making rate compared to 89.4% for units. The median gain for houses was $340,000, nearly double that of units at $185,000.

In regional areas, profit-making sales outpaced the capitals, but some markets, like the WA Outback North and parts of Victoria, showed signs of weakness.

The median hold period for resales was 8.8 years, with properties purchased around 2015 showing a 56% increase in value. Profit-making properties tended to have a slightly longer hold period than those sold at a loss.

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