A recent report from CoreLogic reveals that Australian homeowners are currently enjoying record average profits of $306,000 from property sales, despite variability across different regions. The report indicates that 94.8% of sellers are making a profit, the highest level since CoreLogic started tracking resales in the mid-1990s. However, this figure represents a slight drop from 95.1% in the previous quarter, attributed to declining home values following a series of interest rate hikes.
Brisbane emerged as the top city for profit-making property sales, with an impressive 99.1% of resales yielding profits this quarter. Following closely are Adelaide, Sydney, Melbourne, Hobart, and Canberra. Conversely, Darwin and the regional Northern Territory face challenges, recording the highest rates of loss-making sales. Areas within inner Melbourne and parts of Sydney, such as Parramatta and Ryde, are among the worst for loss transactions, contributing significantly to the overall loss figures.
Despite recent dips in property values, the total profits from property resales reached approximately $35.6 billion, up from $35 billion in the preceding period. On average, the median loss for property sellers was $45,000, a slight increase of $5,000 from the prior quarter. The report is based on data from 95,300 transactions occurring within the three-month period ending in December 2024.
Eliza Owen, CoreLogic’s Head of Research, asserts that Australia’s property market remains competitive. She suggests that, with anticipated easing in the cash rate in the coming year, profitability from home resales is likely to increase in 2025. Owen also highlighted that homeowners who incurred losses tended to sell their properties after a shorter ownership period, with profitable sellers typically holding onto their properties for an average of 9.3 years, compared to 7.6 years for those who suffered losses.
In conclusion, while the overarching trend indicates substantial profits in the Australian property market, regional variances and recent sale losses highlight the complexities facing specific areas and types of properties.