Research by RP Data confirms that more than three quarters of Aussie homes sold for a profit over the March quarter, while roughly an eighth of re-sales over this period transacted at a loss.
RP Data national research director Tim Lawless said a lower interest rate environment appears to be creating an increase in consumer confidence across the property market.
“We’re now seeing a lot more activity around sales compared with this time last year,” he said.
RP Data recorded 58,677 residential property re-sales nationally over the first quarter, of these, 12.7% recorded a gross loss from the original purchase price.
Conversely, 87.3% of all March quarter re-sales recorded a gross profit relative to their original purchase price. The gross profit from these re-sales equated to $9.6bn.
The regions experiencing the biggest losses were in lifestyle locations such as Queensland’s Gold Coast. Regional areas associated with the resource sector reported much fewer re-sale losses.
However, Lawless admitted that the time a property was held was a factor. “The likelihood of making a gross profit or loss is quite different based on the length of time a property has been owned.”
Lawless said a stark example was that only 8% of homes that were purchased prior to January 1, 2008 (pre-GFC) and sold during this year’s March quarter were made at a gross loss.
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