New report by CoreLogic clearly In the September quarter, real estate sales reached their highest levels of profitability in more than a decade.
The percentage of profitable resales across Australia increased by 92.4% over the three months, and the percentage of profitable sales increased for the fifth straight quarter.
Median profits across the country were $ 270,000 (US $ 195,000) and total resale profits were $ 27.3 billion (US $ 19.7 billion). The median loss is $ 37,000 (US $ 26,700), which is equivalent to a total loss of $ 368 million (US $ 265 million).
Eliza Owen, Principal Investigator at Corelogic, said this is a remarkable result given the blockade of the entire eastern state during the quarter.
“The profitable sales growth reflects strong capital growth across the Australian housing market, despite the disruption in trading activity caused by COVID,” she said.
Tight blockades affecting Australia’s two most populous states reduced transaction volume from 106,000 in the previous quarter to 99,000 during this period. Melbourne was particularly affected because vendors couldn’t physically inspect real estate in the city.
The typical holding period for resale was 8.8 years, but the median profit for properties held for more than 30 years was the highest at around $ 745,000 (US $ 537,000).
“But the highest nominal profit of the year was achieved by people on the other side of the spectrum holding assets within two years. The median profit from reselling real estate held for less than two years is It was $ 120,000 ($ 86,500), “Owen said.
Local sales were as high as 93.1%, 2% higher than capital sales.
“While profitability improved throughout the quarter in both large regions, this trend is due to the rapid rise in profitability in the Australian region and the momentum towards the end of regional housing growth. It could continue, this year, “Owen said.
Comparing homes and unit sales, resale of more homes returned to positive, but Owen said the profitability gap between the two was closing.
“Affordable constraints limit the growth of the single-family home market and gradually bias demand towards higher-density housing options,” Owen said.
Real estate prices continued to rise throughout December, but Owen warned that markets would “build up headwinds” in the coming months, including rising supply, affordable price constraints, and normalization of interest rates. did.
“Australia’s decline in home market value will ultimately affect resale profitability, especially for recent buyers,” she said.