The pain caused by Australia’s house price slump has been short-lived, with property resales data showing home owners made a gross $18.7 billion profit on sales in the last quarter of 2019.
A higher proportion of properties are reselling at a profit—a relative indicator of market strength.
And although the proportion of profit-making resales has fallen as property prices trended lower last year, the majority of homes continue to resell at a profit, according to Corelogic’s quarterly “pain and gain” report.
Australia’s house prices are now 20 per cent higher than they were in 2008 after recording the biggest quarterly jump in more than a decade over the December quarter.
Related: Australia’s Housing Market ‘Severely Unaffordable’
| % of all sales | Median hold period | Median profit | |
|---|---|---|---|
| 1. Macedon Ranges (VIC) | 100.0 | 8.2 | $380,000 |
| 2. Moorabool (VIC) | 98.9 | 7.6 | $219,500 |
| 3. Mosman (NSW) | 98.6 | 8.0 | $436,800 |
| 4. Melton (VIC) | 98.3 | 7.6 | $225,000 |
| 5. Waverly (VIC) | 96.3 | 8.2 | $522,250 |
| 6. Hunters Hill (NSW) | 95.5 | 9.4 | $780,000 |
| 7. Scenic Rim (QLD) | 93.6 | 10.3 | $155,000 |
| 8. Moreton Bay (QLD) | 90.8 | 9.3 | $125,000 |
| 9. Redland (QLD) | 90.4 | 10.4 | $125,000 |
Corelogic’s resales data analyses the performance of property resales, providing a temperature check on recent and longer-term market conditions.
Hobart is the top performer, with 98.1 per cent of homes turning a profit over the quarter. Regional Victoria and regional Tasmania followed close behind, at 96.6 per cent and 96.4 per cent respectively.
Corelogic head of residential research Eliza Owen said that Hobart’s large capital gains over the past five years has translated into strong results for resellers.
“Brighton, Derwent Valley and Glenorchy recorded 100 per cent of resales at a gross profit [while] 98.5 per cent of units [in Hobart] turned a gross profit over the quarter compared with 98 per cent of houses.”
| "Pain" % change, houses | "Gain" % change, units | "Pain" % change, houses | "Gain" % change, units | |
|---|---|---|---|---|
| Sydney | 7.9 | 92.1 | 12.5 | 87.5 |
| Rest of NSW | 5.7 | 94.3 | 7.9 | 92.1 |
| Melbourne | 3.4 | 96.6 | 15.0 | 85.0 |
| Rest of Vic. | 3.1 | 96.9 | 5.8 | 94.2 |
| Brisbane | 5.4 | 94.6 | 36.5 | 63.5 |
| Rest of Qld | 14.1 | 85.9 | 24.8 | 75.2 |
| Adelaide | 7.6 | 92.4 | 23.6 | 76.4 |
| Rest of SA | 18.5 | 81.5 | 20.3 | 79.7 |
| Perth | 32.9 | 67.1 | 52.0 | 48.0 |
| Rest of WA | 41.0 | 59.0 | 63.7 | 36.3 |
| Hobart | 2.0 | 98.0 | 1.5 | 98.5 |
| Rest of Tas. | 3.6 | 96.4 | 3.7 | 96.3 |
| Darwin | 39.0 | 61.0 | 61.8 | 38.2 |
| Rest of NT | 24.3 | 75.7 | 42.9 | 57.1 |
| Australian Capital Territory | 3.1 | 96.9 | 21.1 | 78.9 |
| National | 10.0 | 90.0 | 19.8 | 80.2 |
In Sydney, 90.2 per cent of resales were profitable with Mosman resellers experiencing the highest gains (98.6%) followed by Waverley (96.3%), and Hunters Hill (95.5%).
Melbourne’s house market, which has surpassed the $850,000 mark for the first time, recorded a 93 per cent profit-making resale rate over the quarter. Macedon Ranges (100%), Moorabool (98.9%) and Melton (98.3%) led the way.
Meanwhile, Brisbane’s oversupply of investor-grade development contributed to lower prices and higher vacancies in south-east Queensland, with just 63.5 per cent of Brisbane units reselling for a profit over the quarter compared to 94.6 per cent of houses.
The lowest proportion of profit-making resales were recorded across the Lockyer Valley Council with 82.9 per cent.
Darwin recorded the lowest proportion of profit-making resales with just 51.7 per cent of properties making a profit, while regional Western Australia (56.9%) and Perth (63.6%) not following far behind.
