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Aussie home sellers reap record profits in June quarter

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Australian property sellers have pocketed record profits from home resales in the June quarter, according to CoreLogic’s latest Pain & Gain report.

The median nominal gain from resales reached $285,000, the highest since the early 1990s when the series began.

Eliza Owen, CoreLogic’s head of research, attributed the record profits to surging national housing values.

“It also reflects sellers largely being empowered to time their resale for profit, given relatively stable conditions for mortgage serviceability,” Owen said.

Key findings from the report include:

  • 94.5% of transactions recorded a nominal gain, one of the highest rates since June 2010
  • Total nominal gains from resales reached $31.8 billion, up 7.7% from the March quarter
  • Brisbane was Australia’s most profitable market with a 99.1% profit-making sales rate
  • Houses outperformed units, with a 97.2% profit-making sales rate compared to 89.4% for units

Despite the positive results, Owen warned of potential challenges ahead.

“The housing market faces challenges such as persistently high interest rates, rising living costs, and constrained affordability,” she said.

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“Combined with what is looking like a robust spring selling season, the depth of buyer demand to deliver higher and higher profits may be tested in the coming months.”

The median loss from resales was -$40,000, with a total loss of $282 million across Australia.

Units accounted for 66.3% of loss-making resales, with Sydney and Melbourne contributing to 70.6% of these losses.

Owen remained optimistic about the unit market’s future prospects.

“At a high level, the outlook for unit owners looks promising, with unit profitability expected to improve in the short term,” she said.

“Demand for units may increase in the coming months, as buyer demand pivots from the relatively expensive detached house sector.”

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