Melbourne houses raked in the highest profitmaking sales of any capital city in the June quarter, with 98.9 per cent of properties selling for more than what they were purchased for.
And the property market in Ballarat’s SA4 regionskyrocketed to become one of the best performing in the state, with 99.7 per cent of sales in that same period selling for a profit, according to CoreLogic’s latest Pain and Gain report.
Regional Victoria as a whole experienced a record high rate of profitablity with 98.7 per cent of properties selling above their previous purchase price.
CoreLogic’s head of research Eliza Owen said she expected such positive gains may start to “encourage vendor participation and bring down typical hold periods, especially as major cities navigate a path out of 2021 lockdowns”.
PRD Ballarat agent Jason Birch said he had “no doubt” the region had experienced a significant property boom, which was further exacerbated by the Covid-19 pandemic.
“Ballarat has seen unprecedented growth not only over the last quarter, but the last two years,” Mr Birch said.
“It’s been phenomenal; it’s exceeded our expectations.”
Mr Birch cited one property he sold for $550,000 just four months ago, which is about to be listed again for $620,000.
He said the region hadn’t experienced a “tsunami” of Melburnians purchasing property, which had originally been expected with the pandemic.
But a combination of local buyers, investors cashing out and reduced stock had driven it to new heights.
“On the whole, real estate has done fantastically well in Ballarat,” Mr Birch said.
“It was undervalued for a while and now it’s reaching prices that we thought were unachievable.”
Sellers in Moorabool also couldn’t go wrong, with 100 per cent of properties selling above their previous sale price and turning a median profit of $260,000 in that period.
Properties in the city’s Bayside suburbs amassed the biggest bonus, after being held for an average of 10 years, to gain a whopping median profit of $760,000.
But it wasn’t all hunky dory for the Melbourne market.
The city was one of only two markets that had a rise in the rate of loss making sales during the June quarter, alongside Hobart.
This was driven by the unit and apartment sector, the report states.
Of those properties, units in the Melbourne City Council region recorded the biggest downfall with 34.8 per cent of resales selling at a loss.
About 87 per cent of these dwellings were investor-owned units, with the median loss recorded about $50,000.
The Mornington Peninsula recorded the largest loss-making sales of any Melbourne council region in the three months to June, at $228,500.
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