Sydney House Profits At 39-Year High | Kanebridge News
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Sydney House Profits At 39-Year High

Sellers across Australia have pocketed billions.

By Terry Christodoulou
Wed, Sep 29, 2021Grey Clock < 1 min

The number of homes sold for profit has risen to a decade-high during the June quarter as more 91.5% of homes sold were profitable nationwide.

According to the latest CoreLogic Pain and Gain report, that is a 90-basis point increase from the March quarter and is attributed to soaring house prices, limited listing numbers and record low-interest rates.

In Sydney, 97.6% of houses were sold for a profit – the highest level in 39 years. Profitable unit sales rose by 50 basis points to 90.2%.

Within the NSW capital, homes in the northern beaches, Camden and Hawkesbury council were the most proportionally profitable – 97.7%  of homes in those areas selling for more than the purchase price.

Elsewhere, Burwood, Parramatta and Strathfield held the highest proportion of loss-making sales at 18.3%, 14.6% and 12.7% respectively.

Nationally, 12 of the 15 capital cities saw an increase in profitability.

Further, regional markets saw huge shifts in the proportion of profit-making sales with regional Victoria’s Ballarat region achieving 99.7% profitability.

The analysis of the proportion of housing resales that delivered nominal gains or losses to sellers pooled around 106,000 dwelling resales in the June quarter.

Of that number, 97,000 were sold for a profit – up 10% from the previous quarter.

It amounts to vendors making a total of $39.4 billion in nominal gains – a 12.6% rise from the previous gains. Simultaneously, the loss on sales increased on the previous quarter to $1.1 billion.

Nationally, the median profit on resales was $265,000 in the three months to June, while median losses were $43,000.


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By Kanebridge News
Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.