RESIDENTIAL PROPERTY
AS home values continue to recover across the country, profitability continues to rise but short-term loss-making resales are also growing...
According to CoreLogic’s Pain & Gain report for the September quarter, there were around 86,000 resales over the period with 93.5% seeing a nominal gain and...
The September quarter also saw an estimated $27.4 billion in total nominal profits from resales, which is up from $21.6 billion in the three months to February...
However, loss-making short-term resales (properties held for three years or less) were up to 6.6%, compared to just 3.6% at the same time last year...
“While the portion of short term reselling dipped marginally quarter-on-quarter, resales with a hold period of three years or less hit a decade high in the year to...
“Another emerging trend in resale analysis is the greater share of loss-making that occurred within a relatively short hold period, as opposed to properties commonly making a...
The median loss from these short-term resales was at $30,000 in the September quarter and most were houses, at 64.8%...
Houses had a higher rate of profitability with 96.8% recording a median gross profit of $364,000, compared to 87.4% with a nominal gain of $167,000 for units...
Adelaide was the most profitable city for the fifth consecutive quarter, with only 1.5% of resales across the city making a nominal loss...
“The RBA is forecasting unemployment to rise to 4.2% by the end of next year, up from 3.9% at the end of this year. This will test serviceability, and may lead to an increase in...
“However, this is ultimately a small share of mortgagors, so the portion of short term resales is not expected to grow substantially from where it is now. Ongoing increases in home values...