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.