House owners have a greater chance of making a gain on the sale of their property than apartment owners. And owner occupiers do better when they sell than investors.
Residential property researcher CoreLogic reports that during the September quarter 90 per cent of houses across Australia sold for more than their purchase price, while 80.2 per cent of apartments sold for more than their purchase price. The disparity was greatest in Canberra and Brisbane.
CoreLogic head of residential research Eliza Owen says: “In recent years there has been a relatively high level of newly constructed apartments in state capitals, especially in Brisbane and Canberra. This oversupply, which contributes to lower prices and higher vacancies, has impacted returns for unit sellers.
Owner-occupier properties outperformed investment properties in all markets except Hobart and regional Tasmania during the September quarter. Nationally, 88.9 per cent of owner-occupier properties resold for a gain, compared with 83.4 per cent of investment properties.
Overall, 87.4 per cent of residential property resales during the quarter made gains. The total “gross profit” for sellers was $18.7 billion.
The proportion of profitable resales rose by 0.1 per cent over the previous quarter and “profits” increased by $2.4 billion.
Owen says the Hobart market has generated the biggest increase in capital gains over the past few years “and this has translated into exceptionally strong results for resellers of both houses and apartments during the past quarter.”
Sellers in Darwin suffered the most pain, with only around half (51.7 per cent) selling for a gross profit.
In the other capitals:
- In Sydney 90.2 per cent of sales were at a gain during the quarter – up from 89.1 per cent in the previous quarter but down from 94.5 per cent in the September quarter 2018;
- In Melbourne, 93 per cent of properties were sold at a gain – up from 9.2 per cent in the previous quarter but down from 95.2 per cent in the September quarter 2018.
- In Brisbane, 87.9 per cent of sales were at a gain – up from 87.2 per cent in the previous quarter but down from 90.8 per cent in the September quarter 2018.
- In Adelaide 89.2 per cent of sales were at a gain – down from 91.8 per cent in the previous quarter.
- In Perth, 63.6 per cent of sales were at a gain – up from 63.3 per cent in the previous quarter but down from 68.8 per cent in the September quarter 2018.