Sydney leads nation in homes re-sold for profit
March 28, 2014 / Written by Rich Harvey
More than 90 per cent of re-sales recorded a gross profit during the final quarter of 2013 - great news for those engaged in Australian property investment.
RP Data's latest Pain and Gain report showed that on a national basis, the number of re-sales that resulted in a profit has increased. Only 9.7 per cent of all homes re-sold over the three-month period ending in December 2013 experienced a gross loss. This is down from 13.1 per cent during the three months ending January 2013, as well as 12.6 per cent during the December 2012 quarter.
"At the capital city level, the proportion of loss making re-sales has been lower than the national average since early 2009," the report stated.
"Over the three months ending December 2013, 6.5 per cent of all capital city re-sales recorded a gross loss. The proportion of loss making re-sales across the combined capital cities was at its lowest level since mid 2011, down from 7.7 per cent the previous quarter and 9.8 per cent a year ago."
News was even better for individuals looking to buy investment property in Sydney.
RP Data reported only 3.6 per cent of homes re-sold over the December 2013 quarter in Sydney sold for less than their initial purchase price. This marks a decrease from 7.5 per cent during the same time last year, as well as the lowest level since April 2004.
Investors eyeing the eastern suburbs will be glad to see that the Randwick council region boasted 97.2 per cent gross profit re-sales, while the Woollahra council region was close behind with 96.4 per cent.
The inner west also saw a vast majority of re-sales result in profit, with the Strathfield council region posting 97 per cent, and the Ashfield and Leichhardt regions following suit with 96 per cent and 98.5 per cent, respectively.