Australian property sellers make out like bandits

CoreLogic’s June quarter Pain & Gain report has revealed the highest level of profitability for property sellers in a decade:

Key findings for Pain & Gain, June Quarter 2021

• Around 106,000 dwelling resales were analysed for the June quarter Pain & Gain report.
• Of those 91.5% recorded a nominal profit-making gain from the previous purchase price.
• The median hold period of those resales was 8.8 years.
• Property owners who resold after just two years pocketed a median return of $123,000.
• Property owners cashing in after more than 30 years of holding a property, achieved a median return of $712,000.
• 99.7% of residential properties resold in the Ballarat SA4 region in the June quarter achieved a gain for the vendors.
• In regional Victoria, 98.7% of all dwelling resales in June made a nominal gain.
• In Sydney, 97.6% of houses sold for a nominal gain, the highest level since 1982.
• The main drivers for the record resale gross profits are tight listings and low mortgage rates.
• Loss-making sales were affected by border closures and weak inner-city rental markets.