Seller’s market: How real estate delivered $60 billion profit in six months
The housing boom has delivered a $60 billion profit to sellers in the December and March quarters, according to CoreLogic.
Brisbane property prices have slumped by more than 10 per cent - the largest drop on record, in the second half of 2022, latest figures have revealed.. (Pic The Firm)
CoreLogic’s Pain and Gain report found the total profit for sellers in the March quarter was was $30.6 billion nationally.
“This is actually down from $32.2 billion in the December quarter, but that is likely a reflection of seasonally lower sales activity through the start of the year,’’ CoreLogic said.
It also found the portion of profit-making resales in the March quarter increased to 90.3 per cent nationally, up from 89.1 per cent in the previous quarter and the COVID-induced low of 86 per cent in the three months to June 2020.
It said variations in the scale of pain or gain were reflected across the different housing markets in the country, with regional Australia continuing its downward trajectory of loss-making resales for the fifth consecutive quarter.
Units were more than twice as likely to sell at a loss as houses and owner occupiers enjoyed a higher incidence of profitability than investors.
CoreLogic head of research Eliza Owen said increases in the rate of profit for real estate sellers were come off the back of remarkable growth in Australian dwelling values.
“Between the market bottoming out in September 2020, and the end of March 2021, Australian dwelling values have risen 8.2 per cent,’’ she said.
