Almost one third of homes sold in the March Quarter achieved a price double that of the purchase cost, a new report reveals.
CoreLogic’s Pain and Gain Property Report found that 32% of properties resold in the March Quarter had doubled their earlier purchase price, though these sales did occur an average of 17.2 years after the initial purchase.
The report also found that 9.2% of properties in the period recorded a gross loss – although these homes had been held by the owner for only 5.4 years on average. This compared to the 10.1-year average for the 91% of properties sold at a profit.
“Property ownership, whether for investment or owner-occupier purposes, should be seen as a long-term investment,” CoreLogic research analyst Cameron Kusher says.
The average loss came in at $66,073, while the average profit was $239,855. In total, there was $361 million in realised losses over the quarter against $12.9 billion in profit.
Capital cities showed the most stability, with just 7% of properties offloaded at a loss, as against 13% for regional homes.