Property continues to return a profit
The latest Corelogic data shows that, despite a cooling market in many states, nine out of 10 property sales are still returning a profit for their owners.
Across the country, 91.1 per cent of all properties that resold in the December quarter of 2017 went for a higher price when compared to the purchase price. However, when broken down between property types, there was a slight difference between the proportions of houses reselling for a gross profit, at 92.3 per cent, and unit sales at 88.2 per cent.
The report also looked at vendor-type and found that 93.9 per cent of capital city properties resold by owner occupiers transacted at a profit compared to 90.7% of investor owned properties.
Furthermore, profits earned from property resales over this period totalled $17.832 billion. By comparison, the resale losses amounted to just $442.0 million. Unsurprisingly, the research found that most of resale profit was generated in the Sydney and Melbourne markets, accounting for 33.1% and 29.4% of total profits respectively.
These latest finding can give confidence to property owners that market conditions nationally are still performing well and investment in property continues to be a fruitful exercise for the vast majority of Australians.