2021 Australian Property Resales, Bank Substantial Profits

The first half of 2021 have seen considerable profits taken in the property market. Those who have sold their homes in the first part of the year have pocketed $30.6 Million in additional earnings as revealed in a CoreLogic report.

Some of the notable takeaways in the report include:

1.     Apartments are still underperforming

Almost 17% of apartments exchanged, were done so at a loss to seller. This figure represents just under two and a half times the amount of houses that were did not sell for a profit. The desire to own a freestanding dwelling remains a theme that has carried on from 2020.

2.     Regional sales continue to lead

For the fourth quarter running, regional resales have continued to yield a higher rate of profitability when compared to its capital-city counterparts. The gap between the differentials have narrowed with growth in capital city dwelling’s almost comparable to regionals throughout April-May.

3.     Stock remains low

Demand continues to outstrip supply, especially in the regional market. Limited stock in regionals have accounted for the outpaced performance in the area. Average time spent on the market has shrivelled to less than a third, going from 25-35 days to a snappy 10 days. Cheap funding, increased national savings, desirability and limited stock are all fuelling price growth.

The question remains as to whether the growth in dwelling values is sustainable. There are signs of buyer’s fatigue, especially amongst the first home buyer community, who are currently seen to be pushed either in affordability or pushed towards less sough-after regions

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