Australia’s best performing areas
Australia’s best performing areas
Posted on Monday, June 16 2014 at 1:06 PM
Properties in Sydney have performed the best of any area around the country over the past few months, according to an RP Data March 2014 Quarterly Pain and Gain report.
The report looks at areas which have made profits and losses and says
Sydney recorded the lowest proportion of any loss-making resales in Australia.
Only three per cent of properties resold made a loss. Almost 30 per cent of
properties sold in Sydney made a profit of 100 per cent or more.
Around Australia, 90.2 per cent of all resales over the March quarter led
to a profit for homebuyers and investors, with 30.6 per cent of all sellers at
least doubling their money, compared with the original purchase price.
RP Data research analyst Cameron Kusher says the areas which had the
biggest losses were the lifestyle regions and mostly the unit markets.
“As a stark example, homes purchased prior to January 1, 2007, pre-GFC,
and then sold during the June quarter of this particular year, only 7.2 per
cent of resales made a gross loss. However, for homes purchased on or after
this date, the propensity to make a loss on the sale climbed substantially,”
Kusher says.
It’s no surprise that the longer the property is held for, the more
likely it is to make a profit.
In Sydney, Perth and Darwin, the proportion of loss making sales was
highest for homes resold in less than one year. In Melbourne, Brisbane,
Adelaide and Hobart, around 30 per cent of homes resold between three and five
years after their purchase were most likely to sell at a loss.
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