Melbourne property owners making profits on sale | CoreLogic Pain and Gain report

A staggering number of Melbourne property owners made a profit on reselling their homes in the first quarter of 2021.

CoreLogic’s Pain and Gain report found the portion of profit-making resales in the Melbourne real estate market between January and March 2021 fell slightly (0.02%) but remained a very respectable 94.5%.

Despite the decline, Melbourne was still the second-most profitable capital city in terms of the portion of resales achieving a nominal profit.

This was behind Hobart, at 98.4%.

The increase in the rate of loss-making sales was driven by the unit segment, where the portion of loss-making sales increased 120 basis points to 12.8% through the quarter.

However, the rate of loss-making sales across Melbourne units is still well below the high of 18.2%, which was seen in the three months to February 2019, when the Australian housing market was nearing the trough of a large downswing.

The City of Melbourne council region remains prominent as having the highest rate of loss-making sales, at 33.3% in the March 2021 quarter.

This is up from 31.3% in the previous quarter.

This amounted to over 200 loss-making sales in the quarter, all of which were units.

The median hold period for loss-making unit sales across the City of Melbourne was 7.9 years.

Around 85% of these sales were held by investors.

You may also be interested in reading:

Australia’s property market upswing pushes rate of profit-making resales over 90 per cent in March quarter

CoreLogic Pain and Gain report: Australian national overview

CoreLogic Pain and Gain report: Houses vs Units

CoreLogic Pain and Gain report: Sydney

from Property UpdateProperty Update https://propertyupdate.com.au/corelogic-pain-and-gain-report-melbourne/