Newspaper article The Daily Mercury (Mackay, Australia)

Property Resale Winners Outstrip the Losers

Newspaper article The Daily Mercury (Mackay, Australia)

Property Resale Winners Outstrip the Losers

Article excerpt

INDICATIVE of the magnitude of the profits realised from property over the June 2017 quarter was property resales.

Combined, resales earned sellers $18.2 billion in gross profits with the median profit recorded at $195,000.

On the downside, gross resale losses totalled $469.6 million with the median loss recorded at $35,000.

The latest CoreLogic Pain & Gain June 2017 quarter report showed that 89.8 per cent of dwellings which resold over the period did so for more than their purchase price; a 0.3% increase from the March 2017 quarter result of 89.5%.

Of the property types to resell over the period, houses scored top billing with profit gains of 92.1%, while unit resales achieved an 87.5% gain.

Owner occupiers were the biggest winners in the property resale stakes with overall profits estimated at 92.3%.

Investors resales earned significantly less and recorded 88.1%; Sydney was the only major region in the country where investors were more likely to resell at a profit than owner occupiers.

Across the combined capital cities, a significant gap in the proportion of profit-making resales was recorded by owner occupiers and investors in a number of cities; 93.7% of owner occupiers and 90.3% of investors resold their properties for a profit over the June 2017 quarter.

CoreLogic research analyst Cameron Kusher said, "investors were 4.8 times as likely to resell at a loss as owner occupiers in Melbourne, in Brisbane the figure was 2.8 times and in Canberra the figure was 3.5 times".

Regional area resales also enjoyed a win.

For the combined regional markets, 90% of owner occupiers and 83.7% of investors resold their properties for a profit over the June 2017 quarter.

A greater proportion of owner occupiers continued to resell at a profit over investors.

However, the same extreme differences between the vendor types as seen across some of the capital cities was not seen in regional markets. …

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