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.

The next chart shows the national percentage of properties that sold for a profit (91.5%) against capital growth:

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