Record Gains in Australia’s Property Market—Is It Time to Sell?

The latest CoreLogic report in Sept 2024 reveals record-high profits for resales in many areas across Australia. With some homeowners making significant gains, now might be the perfect time to consider selling.

Sydney

• Overview: 92.0% of properties resold for a profit, the highest rate in almost two years.
• Price Growth: Median gain of $353,000 for all dwellings, with houses showing stronger gains ($615,000).
• Trend: Unit profitability increased slightly, but houses continued to outperform.
• Forecast: Growth may moderate due to high interest rates and affordability concerns.

Melbourne

• Overview: Profit-making resales fell slightly to 90.5%, with 19.3% of units reselling at a loss.
• Price Growth: Median gain of $306,000, with units seeing higher loss rates (39% in the City of Melbourne).
• Trend: Continued downturn, with six consecutive months of home value declines.
• Forecast: Unit markets, particularly in high-density areas, will likely continue to face profitability challenges.

Brisbane

• Overview: Brisbane led profitability with 99.1% of homes reselling for a profit.
• Price Growth: Median gain of $333,000, with a narrower performance gap between houses and units.
• Trend: Strong unit growth (5.4% vs. 3.5% for houses) contributing to increased profitability.
• Forecast: Continued growth in values, maintaining Brisbane’s top spot for profitability.

Adelaide

• Overview: 98.7% of resales made a profit, with the smallest gap in profitability between houses and units.
• Price Growth: Median gain of $335,000, but the median loss rose to -$72,900.
• Trend: Steady growth, with accelerating value increases in the unit market.
• Forecast: Strong growth outlook, especially in units, maintaining profitability.

Perth

• Overview: 95.4% of homes resold for a profit, with house profitability at 98.3%.
• Price Growth: Perth has seen the largest uplift in home values since the start of the pandemic (72.5%).
• Trend: Profitability has increased for five consecutive quarters, driven by migration and resource sector growth.
• Forecast: Profitability is expected to continue rising, with further value gains likely.

Hobart

• Overview: Profitability slipped, with 5.3% of resales making a loss, mainly driven by units.
• Price Growth: Unit losses increased, while house resales remained relatively stable.
• Trend: Weaker value trends, with Hobart dwelling values still 12.2% below peak.
• Forecast: Continued challenges for units, with house markets remaining more stable.

Darwin

• Overview: Darwin had the highest loss-making sales rate at 32.1%.
• Price Growth: Significant gap between houses (19.8% loss-making) and units (51.4% loss-making).
• Trend: Negative migration trends and falling demand have hurt profitability.
• Forecast: Profitability is unlikely to improve in the short term, with further losses expected.

ACT

• Overview: 94.4% of resales made a profit, up from 93.9% in the previous quarter.
• Price Growth: Median gain rose to $303,000.
• Trend: Rising rates of loss-making sales, especially for units.
• Forecast: Profitability risks increasing as home values remain 6.1% below peak.

Sources: CoreLogic Pain & Gain Report, September 2024

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