One third of homes selling over double purchase price: CoreLogic RP Data

One third of homes selling over double purchase price: CoreLogic RP Data
Jessie RichardsonDecember 7, 2020

The proportion of home sales which resulted in a loss continued to trend lower in the March quarter, according to CoreLogic RP Data's March Pain and Gain report.

At 8.6%, the proportion of loss-making resales was lower than it had been since the June quarter of 2011.

Over the three months to March, home resales generated of $17.1 billion in profit, with the average resale making a gross profit of $251,696. Homes that sold for more than double their purchase price accounted for 32.3% of sales in the March quarter.

While losses are declining across Australia, some capital cities have fared better than others. Losses continued to trend downward in Melbourne, Sydney, Adelaide and Brisbane, but rose in Perth, Canberra, Hobart and Darwin.

The proportion of loss-making resales was substantially higher in regional areas than in the capital cities, with 14.8% of regional resales making a loss, compared to just 5.7% of capital city resales.

The regions with the largest proportion of loss making resales:

  1. Mackay (Qld) (34.7%)
  2. Fitzroy (Qld) (29.6%)
  3. Townsville (Qld) (29.1%)
  4. Wide Bay (Qld) (28.2%)
  5. Cairns (Qld) (23.6%)
  6. Outback (Qld) (22.9%)
  7. South East (TAS) (22.7%)
  8. Gold Coast (Qld) (21.4%)
  9. Wheat Belt (Qld) (21.4%)
  10. Outback (WA) (21.3%)

Source: CoreLogic RP Data

Queensland's regional property markets had the worst resale performance for the quarter, with 21.5% of regional Queensland homes reselling at a loss. More than a third of homes in Mackay sold for less than the vendors paid for them.

The town's property market downturn has been well documented, as mining workers depart and vacancy rates climb.

Earlier this month, 12 Hangan Street in the Mackay suburb of Bucasia sold for $335,000 – $55,000 less than the vendors paid in January 2011 (pictured below).

The three bedroom house had been on the market for 706 days before it finally sold on 8 April.

Fitzroy, which includes Rockhampton and Gladstone, recorded the second worst result, with 29.6% of properties reselling at a loss.

Vendors paid $465,000 for 9 Sutherland Court in Gladstone's Telina in October 2009. They sold the four bedroom house for $440,000 earlier this month (pictured below).

The town has also been feeling the impact of the mining boom's decline across both residential and commercial markets.

Regional Queensland's performance highlights the varied market conditions across the country.

The regions with the lowest proportion of loss-making resales:

  1. Sydney (NSW) (2.4%)
  2. Illawarra (NSW) (2.5%)
  3. Toowoomba (Qld) (2.7%)
  4. Newcastle and Lake Macquarie (NSW) (3.4%)
  5. Perth (WA) (5.5%)
  6. Geelong (VIC) (5.6%)
  7. Melbourne (VIC) (5.6%)
  8. Ballarat (VIC) (6.5%)
  9. Far West and Orana (NSW) (6.9%)
  10. New England and North West (NSW) (7.4%)

 Source: CoreLogic RP Data

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