According to CoreLogic's "Pain and Gain" report, the September quarter recorded the lowest resale profit percentage since the quarter ending August 2013.
The proportion of Australian residential properties resold with gross profit for the September quarter reached 88.9%, compared to 89.7% at the end of the June 2018 quarter and 91.1% for the September 2017 quarter.
CoreLogic also found that the gap between homes and resale units was profitable. While 90.8% of all home resales generated gross profit, only 83.6% of all resales of units generated profits.
Both categories, however, experienced a decline in the number of for-profit resales in the quarter.
Focusing on dollar values, CoreLogic reported that the total value of profits from resold homes was $ 14.06 billion, well over $ 488.1 million. dollars in gross losses on resales.
The majority of the $ 14.06 billion was generated by Sydney and Melbourne, accounting for 31% and 24.7% of total profits nationally, respectively.
"This reflects both the high cost of housing in Sydney and Melbourne and the strong growth in housing values ​​prior to the recent slowdown, which generated substantial profits. In comparison, these two cities accounted for only 12.3% and 7.4% of the total value of losses at the national level during the quarter, "said Cameron Kusher, CoreLogic analyst.
The proportion of Australian homes sold with a loss was 11.1%.
Perth (23.7%) and regional Queensland (19.6%) were identified as the regions with the largest share of losses at the national level.
"The data shows that some areas around Sydney and Melbourne have even fewer resales at a loss than capital cities. On the other end of the spectrum, six regions – all tied to the resource sector – recorded at least 40% of all resales at a loss in the quarter. It is important to note, however, that even though in many of these regions the share of losses is now below its highest level, the number of losses remains high when account is taken of the significant decline in values ​​in these regions. regions. In the end, this reflects the fact that housing values ​​remain well below their peaks in these regions, "said Kusher.
The report states that while capital city housing markets have continued to register a lower proportion of resales at a loss than regional markets, capital city deficit resales have increased more than in regional markets.
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