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The average profit on resale properties increased over the September 2016 quarter, according to the latest CoreLogic Pain and Gain Report.
The average profit across the quarter was $262,672 while the average loss was $71,529.
Sydney posted the highest value of profit-making resales Australia-wide over the quarter, recording an overall profit of $6.22 billion.
The biggest change occurred in the Perth and Darwin markets where loss on resales almost doubled from 10.8 to 19.6 per cent and 17.4 to 30.7 per cent respectively.
It was a different story in Hobart, with a drop in loss-making sales from 12 per cent to 8.4 per cent.
Melbourne had the lowest proportion of loss-making house resales of all the capital cities at 2.1 per cent.
Overall, the industry experienced $477.9 million in realised losses, compared to $17 billion in realised profits.
The percentage of properties that sold at a loss increased slightly on last quarter, from 9.3 per cent to 9.4 per cent.
CoreLogic head of research Cameron Kusher said homes that resold at a loss had a typical length of ownership of 6.1 years for houses and 6.5 years for units.
Those that resulted in a profit had a typical length of ownership of 9.1 years for houses and 7.6 years for apartments.
“These latest results highlight that ownership of property, whether for investment or owner-occupier purposes, should be seen as a long-term investment,” Mr Kusher said.
“Although the occurrence of losses rose over the quarter, in most cities, the instances of homes reselling at a loss is low with the exceptions being Perth where almost two out of every five dwellings resold at a loss and Darwin where approximately three out of every 10 resales was at a loss over the quarter,” he said.
“In most instances, houses virtually always show a lower proportion of loss-making resales than units. The likely reason for this is that the value of a house is largely derived from the land and its location. Also, typically, houses have increased in value at a faster rate than units. Over the September 2016 quarter, 8.0 per cent of houses resold at a loss nationally compared to 12.7 per cent of units.”
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