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Most property is as safe as houses

Most property is as safe as houses

About nine in 10 Australians who sell their home achieve a profit, with houses more likely to finish ahead than units, new research has found.

CoreLogic found that 90.4 per cent of vendors who sold during the March quarter achieved a selling price that was higher than the price they’d paid for the home.

That was based on 91.9 per cent of house owners making a profit and 86.7 per cent of unit owners making a profit.

Capital city owners were more likely to finish ahead than regional owners, according to the research.

In the capitals, profits were enjoyed by 93.9 per cent of house owners and 88.5 per cent of unit owners.

In the regions, profits were enjoyed by 88.9 per cent of house owners and 82.8 per cent of unit owners.

Sydney in the black, Perth in the red

Looking at the capital cities, vendors in the booming Sydney market were the most likely to make a profit, while home owners in the slumping Perth market were the least likely.

CityShare of vendors who profited
Sydney97.8%
Hobart95.4%
Melbourne95.3%
Adelaide92.5%
Brisbane90.8%
Canberra90.4%
Perth76.8%
Darwin63.0%

Location, location, location

CoreLogic head of research Cameron Kusher said the research showed that houses seemed to have more intrinsic value than units.

“We found that houses were considered to be of more value given the underlying land value, whereas the value of a unit is much more linked to location rather than the value of the land,” he said.

“We found that the unit sector is more prone to over-supply, which is another factor that is likely weighing down the resales performance.”

Mr Kusher said the biggest regional losses came from areas closely linked to the mining and resources sector.

Conversely, losses were least likely to occur in coastal and lifestyle markets.

“There is still a relatively high proportion of units in regional Australia reselling at a loss,” he said.

“However, the proportion of loss-making unit sales has shifted substantially lower as lifestyle markets see buyer demand rebounding and mining regions approach the bottom of their cycle.”

Australia’s best-performing and worst-performing suburbs

StateBest-performingWorst-performing
New South WalesAshfield, Burwood, Hunters Hill, Kogarah, WaverlyWoolondilly, Hurstville, Hawkesbury
VictoriaMitchell, Murrindindi, Hobsons BayMelbourne, Stonnington, Port Phillip
QueenslandRedland, Moreton Bay, LoganLockyer Valley, Somerset, Ipswich
Western AustraliaKalamunda, Melville, JoondalupPerth, Mandurah, Claremont
South AustraliaMarion, Adelaide Hills, Tea Tree GullyPlayford, Salisbury, West Torrens
TasmaniaKingsborough, ClarenceDerwent Valley, Brighton, Sorell
Northern TerritoryLitchfieldDarwin

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