Home resellers in Hobart, outer Melbourne, regional Victoria and Tasmania are the biggest winners in billions of dollars’ worth of gains being made on resales of residential property, the latest report shows.
Unveiling the September quarter edition of its Pain and Gain report, real-estate information services firm CoreLogic said 87.4 percent of all residential properties which were sold throughout Australia during the third quarter of last year were sold at a profit.
Combined, these sales yielded overall gains of $18.7 billion.
This compares with 12.6 percent of properties which were sold at a loss, resulting in losses of $764 million.
Moreover, the report uncovered several areas in which almost all properties are being sold at a gain.
The first is Hobart, where 98 percent of houses and 98.5 percent of units resold at a profit during the quarter.
Such is the strength of the market in the Tasmanian capital that no losses at all were recorded in Brighton, Derwent Valley or Glenorchy.
The south-eastern part of regional Tasmania also performed strongly, with 97.9 percent of homes being sold at a profit.
Outside Tasmania, the other outperforming areas are in the Melbourne outer fringe and Victorian regional cities.
In Melbourne’s south and south-east, more than 97 percent of homes resold at a profit in Frankston, Casey, Cardinia and the Mornington Peninsula.
Resale performance in the west and north-west was even stronger.
All homes resold in the picturesque Macedon Ranges yielded a profit, as did 98.9 percent and 98.3 percent of those resold in Moorabool (which includes Bacchus Marsh) and nearby Melton.
Further out, the regional cities of Geelong and Ballarat saw 98.8 percent and 98.6 percent of homes resold at a profit respectively.
By far and away, the resale performance in Hobart reflects a stellar housing market in that city which has been driven by limited supply and the city’s growing popularity as a lifestyle destination which is relatively affordable compared with Sydney or Melbourne.
Over the four years to September 2019, ABS data indicates that dwelling values in Hobart increased by more than 40 percent.
The resale performances in Melbourne’s urban fringe, meanwhile, reflects growth pressures as Victoria’s population increases by more than 2,600 each week.
This is particularly the case with northern and western fringe areas, some of which lie within 30 kilometres of the city centre.
Those same pressures are driving growth in Geelong and Ballarat, which offer cheaper alternatives compared with Melbourne along with good lifestyle, services and amenity.
Overall, the 87.4 percent of dwellings which were resold at a profit (or 12.6 percent which sold at a loss) indicate a stabilisation in resale market performance.
Across capital city markets, resale losses eased from 13.5 percent in the three months to July to 12.9 percent in the September quarter after having previously risen from around five percent during the peak of the housing market boom in 2015 and 2016.
Losses in regional markets accounted for 12.1 percent of sales in such markets.
Not surprisingly, meanwhile, resales in detached housing outperformed those in the multi-unit sector.
All up, 90 percent of all detached homes which were resold during the September quarter sold at a profit.
By contrast, nearly one in five (19.8 percent) multi-unit dwellings which resold did so at a loss.