Property Profits On The Rise

Property profits have hit a 20-year high, with 95.9% of sellers in the December quarter achieving a nominal profit.

Cotality’s latest Pain and Gain report shows that median profits hit a record $365,000 in the quarter. Of the 4.1% of sales that were at a loss, the median loss was $45,000.

The report analyses 102,000 existing property sales during the quarter.

Cotality Head of Research, Gerard Burg, says the gains have been built over time, proving that property is a long-term game.

“Most sellers have held their property for close to a decade, so the results we’re seeing now are a product of sustained value growth rather than short-term market movements,” he says.

Properties that sold for a profit had a median hold period of 9.2 years.

Houses outperformed units with 98.1% of house resales at a profit compared with 91.2% of unit resales.

Houses turn a median profit of $428,000, while units are $246,500.

The report says Brisbane is the most profitable capital city, with 99.9% of the sales during the quarter achieving a profit.

It is followed by Adelaide (99.4%), Perth (98.6%), Hobart (97.2%), ACT (93.8%), Sydney (93.3%), Melbourne (91.5%) and Darwin (86.1%).

Brisbane also has the highest level of median profit of $500,000, while Perth has the highest value of median loss at $90,000.