The latest industry data shows that Sydney’s property sector enjoyed a bumper first quarter, posting a record-breaking percentage of profit-making sales.
Figures from real estate consultancy RP Data indicate that Sydney continue to retain the title of the most profitable real estate market in Australia, enabling sellers in the city to enjoy record profits rates in the first quarter of 2014.
According to RP Data's figures 97 per cent of properties sold in the first quarter of this year managed to produce a property, as compared to 93.1 per cent during the same period a year previously.
According to Tim Lawless, RP Data national research director, the reason for the record profit-taking levels as a result of a steep rise in prices, with the housing market logging gains of more than 20 percent in just the past two years.
This price surge has served to slash the percentage of loss-making sales in the Sydney housing market.
The best performing areas in Sydney included Hunters Hill, Marrickville and Botany Bay, all of which logged profit rates of 100 per cent. Strathfield came in second at 99.3 per cent, followed by the Hills Shire at 99.1 per cent.
Hunters Hill had a median profit of $400,000, while in Marricksville and Botany Bay the profit figures were $322,250 and $227,500 respectively.
Even the worst performing areas in Sydney were almost on par with the average compared to a year ago, with Wyong seeing a profit rate of 93 per cent, and Pittwater and Gosford logging profit rates of 93.3 and 93.8 per cent respectively.
While loss-making properties were largely those which had been held for less than five years, most owners of properties who had bought them at least several years ago could expect to enjoy an accumulation in equity, while those who have seen a doubling in the value of their properties have owned them for just 15 years on average.
In the rest of the country Perth enjoyed a respectable profit rate of 95 per cent, with other capital cities lagging significantly behind. Melbourne's profit rate was 92.6 per cent, while the figures for Brisbane and Adelaide lagged well to the rear, at 89.1 per cent and 88.5 per cent respectively.