Aussie property vendors banked $27b of profits in Q3

CoreLogic has released its Pain & Gain report for the September quarter of 2021, which reveals that 92.4% of vendors recorded a nominal profit-making gain from the previous purchase price, up from 87.5% in the Sept 2020 quarter. This was the highest proportion of profit making sales in more than a decade:

The combined value of profit from resales in the September quarter totalled $27.3 billion, while resale losses totalled $368 million in the same period.

Typical hold periods on all resales averaged 8.8 years through the quarter, with the median difference between the initial and resale value sitting at $248,000 in the period.

Nationally, the median profit on resales was $270,000 in the three months to September, while median losses were $37,000.

Profitability was higher across the combined regions than capital cities:

Whereas houses were far more popular than units:

The next table breaks down profitability across jurisdictions by segments and shows that NSW (Sydney), Tasmania (Hobart) and the ACT had the highest levels of profitability:

Finally, owner-occupiers have enjoyed greater profitability than investors, reflecting that they tend to purchase houses over apartments:

2021 was certainly a great year to be long property.

Unconventional Economist

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