Corelogic Pain & Gain

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<p>EXPERT INSIGHT</p>

<p>Hobart and regional Victoria profit most, shows latest CoreLogic Pain and Gain report</p>

<p>CoreLogic’s Pain and Gain report for the September 2020 quarter released today has revealed Hobart retained its position as the capital city with the highest rate of profit making resales at 96.6%, while regional Victoria was the most profitable ‘rest of state’ region with 97.5% of dwellings sold for a profit in the three months to September.</p>

<p>Nationally, the proportion of resales that made a profit was 88.1% or $24.8 billion in profits, up from 87.2% or $19.8 billion in the June 2020 quarter. However, the amount of losses also deepened on non-profitable sales, from -$885 million in the June quarter to -$1.2 billion in September.</p>

<p>The Pain and Gain analysis for the September quarter reflects the resilience seen in the property market throughout 2020.</p>

<p>Each of the greater capital city markets, with the exception of Melbourne, saw an increase in the rate of profit making sales over the September quarter. The highest rate of profit making sales was across Hobart, which has been the case since March 2018.</p>

<p>Coastal regional markets were also particularly profitable for sellers, with profit making sales representing over 95% of resales across six major coastal markets: Geelong, Illawarra, the Mid North Coast, the Newcastle Lake Macquarie region, the Richmond Tweed region and the Sunshine Coast. The Sunshine Coast hit a record high rate of profit making sales in the September quarter at 96.4%.</p>

<p>Comparing the capital cities to regional Australia, the portion of profit-making sales increased more rapidly across the regions than capitals.</p>

<p>The combined regional Australian market saw the rate of profit making sales increase 150 basis points, to 89.2% in the September quarter, while the rate of profitability across capital city markets expanded 30 basis points, to 87.2%. This also reflects the divergent performance between regional and capital city real estate markets through 2020.</p>

<p><strong>Houses vs Units</strong></p>

<p>The report also demonstrates that there was generally a higher rate of return for houses ($225,000) than units ($125,000).</p>

<p>Profitability across both houses and units rose across Australia in the September 2020 quarter. The portion of properties sold at a loss among houses fell from 10.2% in the three months to June to 9.6%, while the portion of loss making unit sales fell from 21.4% to 19.6%.</p>

<p>The differential between house and unit profitability narrowed to 10 percentage points in the September quarter, down from 11.2 percentage points in the three months to June. The narrowed differential was a result of unit profitability rising faster than that of houses. Even though the rate of loss making sales declined faster across the unit segment, units were still about 2 times more likely to sell for a loss than houses in the September quarter.</p>

<p><strong>Investors vs Owner Occupiers</strong></p>

<p>A higher portion of property investors sold their dwelling at a loss during the September quarter compared with owner occupiers. Investor sales in the September quarter saw 17.1% of properties sell for a loss, compared with 10.4% of owner occupied sales.</p>

<p>Despite the higher rate of loss observed in investor sales in the quarter, the rate of properties re-sold at a loss was down from 18.0% in the June quarter, while the rate of loss making sales among owner occupiers was down from 11.1%.</p>

<p>The only region where there was a higher incidence of loss making sales among owner occupiers was across Hobart. This has been a consistent trend across the past few quarters. In the three months to September, 3.2% of owner occupied resales saw a nominal loss, compared with just 1% of investor sales.</p>

<p>The relatively low level of loss making sales among both cohorts reflects the exceptional capital growth across the Hobart market. CoreLogic home value indices show dwelling values across Hobart have seen annualised growth of 7.9% for the 5 years to December 2020, the highest annualised growth rate of the capital city markets.</p>

<p><strong>Hold periods</strong></p>

<p>Analysing returns by hold period suggests a greater amount of gain comes from more time in the market.</p>

<p>Over the September 2020 quarter, the median hold period of re-sale events across Australia was approximately 8.5 years. For profit making sales, the median hold period was 9 years, while loss making sales were typically held for 6.7 years. For houses and units, typical hold periods were longer across profit making resales.</p>

<p>The Australian housing market is expected to improve further in the coming months. With record low mortgage rates, a faster than expected economic recovery and relatively low cases of COVID-19, profitability is tipped to trend upwards over the coming quarters.</p>

<p><strong>Eliza Owen<em> </em></strong><em>is CoreLogic’s Head of Research Australia</em></p>
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Regional Victoria and Hobart homes profited most in Q4 2020: CoreLogic's Eliza Owen

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<p>Indicative of the magnitude of the profits realised from property over the June 2017 quarter was property resales. Combined, resales earned sellers $18.2 billion in gross profits with the median profit recorded at $195,000. On the downside, gross resale losses totalled $469.6 million with the median loss recorded at $35,000.</p>
<p>The latest CoreLogic Pain &amp; Gain June 2017 quarter report – www.corelogic.com.au/paingain (a national profit and loss analysis of property resales over the June 2017 quarter) showed that 89.8% of dwellings which resold over the period did so for more than their purchase price; a 0.3% increase from the March 2017 quarter result of 89.5%. Of the property types to resell over the period, houses scored top billing with profit gains of 92.1%, while unit resales achieved an 87.5% gain.</p>
<p>Owner occupiers were the biggest winners in the property resale stakes with overall profits estimated at 92.3%. Investors resales earned significantly less and recorded 88.1%; Sydney was the only major region of the country in where investors were more likely to resell at a profit than owner occupiers.</p>
<p>Across the combined capital cities, a significant gap in the proportion of profit-making resales was recorded by owner occupiers and investors in a number of cities; 93.7% of owner occupiers and 90.3% of investors resold their properties for a profit over the June 2017 quarter.</p>
<h3>Proportion of total resales at a loss/gain,<br>houses vs. units, Jun 2017 quarter<br> </h3>
<p><img src="https://www.corelogic.com.au/sites/default/files/styles/article_image_570w_/public/2017-10/2017-10-06-painandgain.png" alt="2017-10-06--painandgain" width="570" height="404"></p>
<p> <br>CoreLogic research analyst Cameron Kusher said, “Investors were 4.8 times as likely to resell at a loss as owner occupiers in Melbourne, in Brisbane the figure was 2.8 times and in Canberra the figure was 3.5 times.” </p>
<p>Regional area resales also enjoyed a win. For the combined regional markets, 90.0% of owner occupiers and 83.7% of investors resold their properties for a profit over the June 2017 quarter.  A greater proportion of owner occupiers continued to resell at a profit over investors. However, the same extreme differences between the vendor types as seen across some of the capital cities was not seen in regional markets. <br> <br>Mr Kusher said, “For owner occupiers, the results show the benefits of selling in a buoyant market.  In a falling market, owner occupiers may be more prepared to sell at a loss if they are purchasing their next home at an equivalent or greater discount.  Because of taxation rules, investors may be more prepared to incur a loss because they, unlike owner occupiers, can offset those loses against future capital gains.”   </p>
<p>“Should home values fall in the future, investors, which have been increasingly active in the housing market, may be more inclined to sell at a loss and offset those losses which in turn could result in much more supply becoming available for purchase at a time in which demand for housing falls because values are declining.”  </p>
<p>Regions showing low profit-making resales continue to be headed by those linked closest to the mining and resources sector. <br>   <br>Mr Kusher said “While the June 2017 quarter results show a reduction in the proportion of profit-making sales in some of these regions, home owners seem willing to sell but there remains little demand to purchase in these regions which is resulting in a high proportion of vendors materialising losses. The regions with the lowest proportion of resales at a loss makes for interesting reading.  <br>  <br>“The Sydney and Melbourne housing markets have been powerhouses over recent years however, regions outside but adjacent to Sydney are seeing a lower proportion of resales at a loss.  Similarly in Victoria, Melbourne continues to see relatively few resales at a loss however, the proportion of loss-making resales is actually lower in both Geelong and Bendigo.”</p>
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Property resale winners outstrip the losers

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<p>Hobart recorded 7.6% of houses and 10.9% of units reselling at a loss over the September 2016 quarter, according to CoreLogic's latest Pain and Gain report.</p>
<p>The property data firm says that the occurrence of resales at a loss has fallen over the quarter for houses and units in Hobart.</p>
<p>The chart below relates to Hobart only losses in houses versus units.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/30/Corelogic-18.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/30/Corelogic-18.jpg" alt=""></p>
<p>The Hobart (5.9%), Clarence (9.1%) and Kingborough (11.0%) council areas had the lowest proportion of loss-making resales over the quarter.</p>
<p>The instances of resale loss were much higher in: Brighton (18.2%), Derwent Valley (17.4%) and Sorell (15.0%).</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/01/30/Corelogic-19%20copy%202.jpg" target="_blank">Click to enlarge</a></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/01/30/Corelogic-19%20copy%202.jpg" alt=""></p>
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Derwent Valley resales at loss still high, but Hobart sales are increasingly profiable: CoreLogic Pain and Gain

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<p>As with March quarter results, resales in the three months to June in Perth council regions showed a fairly steady portion of loss making sales, according to the recent CoreLogic Pain and Gain report.</p>
<p>The portion of loss making sales was 36.2 per cent, which the second-highest of the capital city markets behind Darwin (where more than half of resales saw a nominal decline).</p>
<p>The overall rate of loss making sales was steady, the report noted.</p>
<p>Unit sales saw a 2.5 percentage point increase in the portion of loss making sales, to 57.5 per cent.</p>
<p>The portion of loss making house sales fell 50 basis points to 32.2 per cent.</p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/perth%201.png" target="_blank">Click here to enlarge</a>:</p>
<p><img src="https://www.urban.com.au/images/2020/10/7/perth%201.png" alt=""></p>
<p><span style="font-size: 12.16px;">Source: CoreLogic Pain and Gain report</span></p>
<p>The council with the highest count of loss making unit sales was Stirling (84 sales), followed by Perth (53). These two regions accounted for around 30 per cent of loss making unit sales across Greater Perth.</p>
<p>The outlook for profitability across the Perth market in the second half of 2020 is more positive, as there are signs the market is returning to the upswing seen before COVID-19, the report noted.</p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/perth%202.jpg" target="_blank">Click here to enlarge</a>:</p>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/perth%202.jpg" alt=""><span style="font-size: 12.16px;"> </span></p>
<p><span style="font-size: 12.16px;">Source: CoreLogic Pain and Gain report</span></p>
<p>Listings volumes and sales activity are rising across Perth, and through September CoreLogic’s home value index has shown signs of dwelling value increases.</p>
<p>As well as low mortgage rates and low COVID cases buoying market activity, WA has seen arguably the most demand-side housing stimulus from the state government on top of federal government schemes. This may serve to increase values and increase the incidence of profit making sales.</p>
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57.5% of Perth unit resales saw a loss: CoreLogic Pain & Gain report

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<p><span>Hobart has had the lowest rate of loss making sales among the capital city markets since March 2018, according to the recent CoreLogic Pain and Gain report. </span></p>
<p><span>The report notes this trend c</span><span style="font-size: 12.16px;">ontinued in the June quarter, as loss making sales </span><span style="font-size: 12.16px;">comprised 3.2% of resales, compared with an average of </span><span style="font-size: 12.16px;">20.0% across the other capital cities.</span></p>
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<p><span>Despite having the lowest portion of loss making sales of the </span><span style="font-size: 12.16px;">capital cities, the incidence of loss making sales did rise from 2.5% in the three months to March.</span></p>
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<p><span>The portion of profit making sales was 96.7% across houses, and 96.9% across units. </span></p>
<p><span>While units had a higher </span><span style="font-size: 12.16px;">incidence of profit making sales, the rate declined by a steeper 1.1 percentage points from the March quarter, the report noted. </span></p>
<p><span style="font-size: 12.16px;"><a href="https://www.propertyobserver.com.au/images/2020/10/7/hobart%201.jpg" target="_blank">Click here</a> to enlarge: </span></p>
<p><span style="font-size: 12.16px;"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/hobart%201.jpg" alt=""></span></p>
<p>Source: CoreLogic Pain and Gain report</p>
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<p><span>Hobart was also one of few areas in Australia that saw an increase in the </span><span>number </span><span>of loss making sales, from 16 in the March quarter, to 19 observed in the three months to June. </span></p>
<p><span>The unit segment across Hobart has been one of the worst affected rental markets since the onset of the pandemic.</span></p>
<p><span> Hobart unit rents fell 5.1% between March and August, driven by a fall in tourism which reportedly prompted an influx of short term accommodation supply into the long term rental market, and a fall in demand from locals working in the tourism industries. </span></p>
<p><span>The significant decline in rental incomes may prompt more investor sales until interstate borders are reopened, the report noted. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/adelaide%202.jpg" target="_blank">Click here </a>to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/adelaide%202.jpg" alt=""></span></p>
<p>Source: CoreLogic Pain and Gain report</p>
<p><span>However, the chance of this leading to an increase in loss making sales may be offset by the increase in dwelling values.</span></p>
<p><span> As with smaller markets such as Adelaide and the ACT, the Hobart dwelling market continued to increase in value from the onset of the pandemic. At August, dwelling values had risen 0.9% since the end of March.</span></p>
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Hobart dwelling market continued growing from the pandemic's onset: CoreLogic Pain & Gain report

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<p><span>Adelaide has seen an increase in the portion of profit making resales, with 9.2% of properties </span><span style="font-size: 12.16px;">seeing a nominal decline in the sale price, according to the recent CoreLogic Pain and Gain report. </span></p>
<p><span style="font-size: 12.16px;">The report notes the June quarter was a reversal of the trend seen in the March quarter, where loss making sales had trended up to 9.9% of resales.</span></p>
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<p><span>The increase in profitability was faster across houses, which saw a 70 basis point increase in the rate of profit making sales from the March to June quarter, as </span><span style="font-size: 12.16px;">opposed to a 20 basis point increase across units.</span></p>
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<p><span>93.2% of houses saw a nominal increase in price in the June quarter, compared with 79.9% of units. </span></p>
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<p><span>The portion of loss making sales was highest across the Adelaide (21.6%), Playford (21.6%) and Mallala (21.4%) LGA regions, the report notes. </span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/adelaide%201.jpg" target="_blank">Click here</a> to enlarge: </p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/adelaide%201.jpg" alt=""></span></p>
<p>Source: CoreLogic Pain and Gain report</p>
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<p><span>The vast majority of loss making sales across the Adelaide LGA were investor-owned units, which may have been prompted by a decline in unit rent values since the onset of the pandemic. </span></p>
<p><span>However, loss making sales were more varied in characteristics across Playford, and loss making sales across Mallala were off a very low base (13 sales).</span></p>
<p><span> Mount Barker saw the highest level of profitability, with just 2.9% of properties selling for less than the previous sale price in the June quarter.</span></p>
<p><a href="https://www.propertyobserver.com.au/images/2020/10/7/adelaide%202.jpg" target="_blank">Click here</a> to enlarge:</p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/10/7/adelaide%202.jpg" alt=""></span></p>
<p><span>Source: CoreLogic Pain and Gain report </span></p>
<p><span>Greater Adelaide has seen an increase in dwelling values since the onset of the pandemic. </span></p>
<p><span>This historically steady market will likely only see further rates of profitable sales in the second half of 2020, aided by low mortgage rates and greater consumer confidence amid low COVID case numbers, the report noted. </span></p>
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Greater Adelaide sees an increase in dwelling values: CoreLogic Pain & Gain report 

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<p><span>Over the March quarter, Adelaide saw an increase in the portion of loss-making resales, with 10 per cent of properties seeing a nominal decline in the sale price, according to CoreLogic's Pain and Gain March Quarter 2020 report. </span></p>
<p><span>This is a reversal of the trend seen in the December quarter, where loss- making sales had seen a consistent decline since September 2019.</span></p>
<p><span>Despite the increase in loss making sales, there were still pockets of the Greater Adelaide region where over 90.0 per cent of properties yielded a nominal gain. These include Tea Tree Gully, where 95.1 per cent of properties saw a profit, based on a typical hold period of 11.2 years. The median gain in the area was about $116,000.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/19_Adelaide%201.jpg" alt="" width="550" height="362"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The lowest portion of profit making sales across Adelaide was in the City of Adelaide. 22.8 per cent of sales in the quarter saw a decline in the resale price, based on a median hold period of 9.0 years, and typical losses were $30,000.</span></p>
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<p><span>The Adelaide dwelling market faces some headwinds in terms of persistently high levels of unemployment, which has only been worsened by the onset of social distancing measures in response to COVID-19. As of May 2020, South Australia continued to see the highest rate of unemployment of the states and territories, at 7.2 per cent.</span></p>
<p><span>Low interest rates and strong rental yields across the Adelaide dwelling market have continued to support growth in the Adelaide property market, which was up 0.7 per cent in the June quarter, but momentum in the growth rate has been slowing over time. The incidence of profitability in resales is likely to slip further over the coming months, until the lifting of social distancing measures sees a material improvement in the labour market.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/19_Adelaide%202.jpg" alt="" width="826" height="398"></span></p>
<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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Adelaide saw an increase in loss-making resales: CoreLogic Pain & Gain

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<p><span>Over the March quarter, the portion of loss making resales across Melbourne was 6.8 per cent, according to CoreLogic's Pain and Gain March Quarter 2020 report. </span></p>
<p><span>This is up from 6.3 per cent in the December quarter, and down 20 basis points from 7.0 per cent in the March 2019 quarter. The portion of loss making sales among units was higher than houses, at 15.5 per cent. The portion of loss making sales in the house segment was just 2.7 per cent.</span></p>
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<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/17_Melbourne%201.jpg" alt="" width="594" height="394"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The highest incidence of loss making sales, as has been a </span>trend for the past few quarters, were concentrated across the Melbourne LGA region. 33.6 per cent of resales saw a loss, and the median value of losses in the region was approximately $44,500. There were approximately 120 loss making sales observed across the Melbourne council region. All of these were units, and 68.6 per cent of these were owned by investors.</p>
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<p><span>For Melbourne and parts of Victoria, the recent rise in coronavirus cases presents ongoing risk to housing market demand. Government lockdowns have been a key determinant of economic performance since the onset of the pandemic. With dwelling value declines already being led by the Melbourne market, which saw dwelling value declines of 2.3 per cent in the June quarter, it is highly likely that there will be an increase in the portion of loss making sales in the metropolitan area over the coming months.</span></p>
<p><span>But despite the increase in the </span><span>rate </span><span>of loss making resales in Melbourne, 716 loss making sales were observed over the March quarter, compared with 904 observations over the December quarter. This reinforces a sense of stability that has been maintained in the housing market at a high level, as a result of lower transaction activity. Maintaining this stability will be dependent on the banking sector and government to extend relief of mortgage repayments, and income support, until the virus curve is once again flattened across the state.</span></p>
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<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/17_Melbourne%202.jpg" alt=""></p>
<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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6.8% of Melbourne resales made a loss: CoreLogic Pain & Gain

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<p>Some 7.6 per cent of resales saw a nominal loss across Sydney, according to CoreLogic's Pain and Gain Report March Quarter 2020. </p>
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<p><span>Alongside Hobart, Sydney was the only capital city to see a decline in </span><span>95 per cent </span><span>the portion of loss making sales, down from 7.9 per cent in the previous quarter. </span><span><br></span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/16_Sydney%201.jpg" alt="" width="414" height="250"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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<p><span>Across the council regions of Sydney, the highest portion of loss making sales were across Burwood (22.4 per cent), Parramatta (15.9 per cent), and Ryde and Strathfield (13.5 per cent). The Burwood council region had a high portion of loss marking sales off a </span><span>75 per cent </span><span>relatively low base. There were about 18 loss </span>making sales observed across the region, most of them units with a relatively low hold period.</p>
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<p><span>Higher levels of profitability tended to concentrate in higher socio-economic areas of Sydney, such as North Sydney, where profit making transactions made up 98.0 per cent of resales in the quarter.</span></p>
<p><span>The Blue Mountains also proved to be the second most profitable region for property sales in the March quarter, with 96.9 per cent of sales seeing an increase in the nominal sale price. However, the gain in the region was relatively low, at $287,250.</span></p>
<p><span>Increased profitability in resales was aided by a strong uplift in dwelling values over the quarter. March saw Sydney dwelling values increase 3.9 per cent. Importantly, the decline in demand resulting from responses to the pandemic has since seen values fall - 0.8 per cent over June, which will likely manifest in more loss making sales in the coming months.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/16_Sydney%202.jpg" alt="" width="710" height="504"></span></p>
<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
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7.6% of Sydney resales saw a loss: CoreLogic Pain & Gain

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<p><span>Brisbane saw a fall in the incidence of profit-making resales in the March quarter, comprising 87 per cent of these transactions. This is down from 88 per cent in the December quarter, and 88.4 per cent in the March 2019 quarter.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/18_Brisbane%201.jpg" alt="" width="491" height="323"></span></p>
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<p>Source: CoreLogic Pain and Gain March Quarter 2020 report.</p>
<p><span>The house market continued to show strong returns relative to the unit market. Over the quarter, 94.6 per cent of houses saw a nominal gain compared with 63.8 per cent of units. This is due to the ongoing, divergent capital growth performance between houses and units. In the 5 years to March 2020 annualised growth across Brisbane houses was 2.7 per cent, compared to</span><span> </span><span>-0.8 per cent in units.</span></p>
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<p><span>These conditions also inform the loss making sales seen across the Brisbane Council Region. In the March quarter, 15.1 per cent of resales saw a loss. Of these loss-making sales, 88.3 per cent were units. It is also noteworthy that across the Brisbane council region, 66.0 per cent of loss making sales had been held by investors.</span></p>
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<p><span>Interestingly, the area with the highest portion of loss making sales was the Lockyer Valley Council region. This portion is off a small base, with only 21 sales in the quarter seeing a nominal decline at resale. Most of these were houses, and had a relatively lengthy median hold period of 9.7 years. However, the median loss on these properties was also relatively small, at $20,000.</span></p>
<p><span>While dwelling market demand may continue to be impacted by COVID-19, a bright spot for ongoing demand in the Queensland market is interstate migration. Over the past few years, Queensland has been the largest recipient of interstate migrants, who typically come from New South Wales or Victoria. The imposed lock down which has seen many adapt to working from home could create added demand for South East Queensland property from owner occupiers as demand returns to the economy. This is because SEQ offers a far more affordable housing price point compared with those in Sydney and Melbourne, and may have greater lifestyle appeal for some.</span></p>
<p><span><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/7/10/18_Brisbane%202.jpg" alt="" width="926" height="257"></span></p>
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<p><span>Source: CoreLogic Pain and Gain March Quarter 2020 report.</span></p>
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