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Pain and Gain

A quarterly assessment of realised gross profit and loss based on dwelling


re-sales over the December quarter of 2013

December Quarter, 2013


Released March 2014

Over the final quarter of 2013 RP Data recorded 74,595 residential property re-sales nationally; of
these 9.7% recorded a gross loss from the original purchase price. The gross value of the losses
associated with these loss making re-sales totalled $457.3 million. Conversely, 90.3% of all
December 2013 quarter re-sales recorded a gross profit relative to their original purchase price.
The gross profit from these re-sales equated to $15.2 billion.
Lifestyle regions continue to show the largest proportion of loss making re-sales, particularly
within the unit markets as opposed to detached housing markets. Queenslands Far North has
recorded the largest proportion of loss making re-sales, with 28.8% of all December 2013 quarter
re-sales transacting at a price lower than what the home was purchased for. It is important to note
that in many of these regions the proportion of loss-making resales is now trending lower.
In contrast, regional areas often associated with the agricultural sector as well as most capital
cities have recorded very low rates of loss making re-sales, with Victorias Loddon region and
Sydney recording the nations lowest proportion of loss-making resales.

Headline results for December quarter


2013
9.7% of all home re-sales that transacted over the final quarter of 2013 recorded a
gross loss compared with their original purchase price. The figure fell from 11.1% at
the end of the September 2013 quarter and from 12.6% at the end of 2012. The gross
value of losses on homes re-sold over the quarter was recorded at $457.3 million and
the average gross loss per loss making transaction was $63,215.
In contrast, 90.3% of all re-sales over the December quarter of 2013 transacted at a
gross profit, with 31.8% of all re-sales at least doubling their money compared with
their original purchase price. The gross profit on these re-sales was $15.2 billion and
the average gross profit per profit making transaction was $225,088.
Pain/Gain results for house and unit re-sales over
December quarter 2013
Loss,
9.7%

>=100% profit, 31.8%

Homes purchased pre-Jan 2008

0% to 10% profit,
13.4%

5.5%

5.0%

5.5%

4.9%

17.6%

9.6% 16.2%
46.0%

18.1%
50% to 100% profit,
13.6%

28.3%

15.3%

10% to 25% profit,


16.0%

28.0%

Homes purchased post-Jan 2008


25% to 50% profit,
15.6%

The likelihood of making a gross profit or loss is quite different based on the length of
time a property has been owned. As a stark example, those homes that were previously
purchased prior to January 1st, 2008 (ie pre-GFC) and were subsequently sold during the
December quarter of 2013, only 5.5% of re-sales were made at a gross loss. For those
homes that were purchased on or after January 1st, 2008 the propensity to make a loss
on the sale climbs substantially. Of those homes that sold over the December 2013
quarter, 17.6% recorded a gross loss relative to the previous purchase price.
To further illustrate this point, for those re-sales that incurred a gross loss over the
December quarter, their average length of ownership was just 5.3 years. Properties that
recorded a gross profit were held for an average of 9.9 years, while those homes that
recorded a gross profit of more than 100% of the previous purchase price were owned for
an average of 16.2 years.

The proportion of loss making re-sales


has peaked
Nationally 9.7% of all homes which re-sold over the three months to December 2013
incurred a gross loss compared with a peak of 13.1% of re-sales over the three
months ending January 2013. The proportion has fallen from 11.1% in September
2013 and from 12.6% over the three months to December 2012.
At the capital city level, the proportion of loss making re-sales has been lower than the
national average since early 2009. Over the three months ending December 2013,
6.5% of all capital city re-sales recorded a gross loss. The proportion of loss making
re-sales across the combined capital cities was at its lowest level since mid 2011,
down from 7.7% the previous quarter and 9.8% a year ago.
Proportion of loss making re-sales, capital cities and national
14.0%
National

Capital cities

12.0%
10.0%

8.0%
6.0%
4.0%
2.0%
0.0%
Dec-03

Dec-05

Dec-07

Dec-09

Dec-11

Dec-13

Across the broad regions of Australia, the most significant proportion of loss making
re-sales are being recorded within the Regional Queensland marketplace (23.7%) and
in Regional Western Australia (19.3%). The weakness in these two regions is mostly
reflective of the conditions across the lifestyle markets where the correction in home
values has been more significant. It is important to note that across these areas the
proportion of loss making sales is reducing as we start to see some low levels of value
growth return to lifestyle housing markets.
The lowest proportion of loss making re-sales are being recorded in Sydney (3.6%),
Perth (4.3%), Melbourne (6.0%) and Canberra (7.4%).
December quarter 2013, proportion of all re-sales by pain/gain bracket
Region
Sydney, NSW
Regional NSW
Melbourne, Vic
Regional Vic
Brisbane, Qld
Regional Qld
Adelaide, SA
Regional SA
Perth, WA
Regional WA
Hobart, Tas
Regional Tas
Darwin, NT
Regional NT
Canberra, ACT
Grand Total

Loss
3.6%
10.8%
6.0%
8.1%
13.1%
23.7%
12.2%
17.0%
4.3%
19.3%
16.5%
18.0%
7.7%
17.2%
7.4%
9.7%

0% to 10% profit
7.1%
15.5%
9.5%
14.4%
20.0%
20.0%
17.9%
19.5%
12.9%
12.8%
20.0%
17.5%
12.5%
9.5%
17.6%
13.4%

10% to 25% profit


18.0%
19.3%
12.1%
17.6%
14.8%
14.3%
14.4%
16.4%
18.9%
8.5%
16.1%
12.1%
15.2%
10.7%
14.2%
16.0%

25% to 50% profit 50% to 100% profit


24.1%
18.5%
13.5%
11.0%
15.4%
17.6%
17.5%
11.3%
13.7%
11.1%
9.8%
9.3%
14.5%
12.3%
11.7%
10.5%
10.2%
9.7%
6.9%
11.2%
10.3%
9.4%
10.0%
7.0%
16.2%
14.8%
12.4%
24.3%
15.9%
10.1%
15.6%
13.6%

>=100% profit
28.7%
29.8%
39.4%
31.2%
27.4%
22.8%
28.7%
24.8%
44.0%
41.3%
27.8%
35.4%
33.6%
26.0%
34.8%
31.8%

Properties held for a short period are


much more susceptible to loss
Of those homes sold throughout the December 2013 quarter, those held for a short
period of time have been much more susceptible to loss. Despite home values having
risen over the past year, 12.8% of owners who purchased and sold in the same year,
sold at a gross loss. Keep in mind that the actual number of homes re-sold in less than
a year is very small. The greatest proportion of loss making sales has occurred across
those homes re-sold after three to five years (19.1%). If an owner wishes to double
their initial outlay upon re-sale they generally need to hold the home for at least a
decade. 55.1% of homes re-sold between 10 and 15 years after purchase sold for
double the purchase price and 95.1% of resales after 15 years were for more than
double the initial purchase price.
Proportion of resales profit by length of ownership, December quarter 2013
Length of ownership
Less than a year
1 year to 3 years
3 years to 5 years
5 years to 7 years
7 years to 10 years
10 years to 15 years
15 years or more

Loss
12.8%
15.2%
19.1%
17.3%
8.1%
2.3%
0.5%

0% to 10% profit
49.1%
34.3%
26.3%
17.7%
8.6%
1.6%
0.1%

10% to 25% profit


20.5%
30.8%
27.9%
24.0%
17.1%
4.1%
0.3%

25% to 50% profit 50% to 100% profit >=100% profit


9.7%
3.3%
4.6%
10.9%
3.8%
4.9%
17.0%
4.5%
5.2%
25.3%
10.9%
4.8%
28.8%
25.4%
12.0%
10.4%
26.5%
55.1%
0.6%
3.5%
95.1%

Across the broad regions of the country you can see that there is quite a divergence in
the proportion of loss making sales and the length of time over which they peak. What
is overwhelmingly clear is that buying and re-selling over a short period of time
significantly increases the chances of incurring a loss-making sale. In Sydney,
Melbourne and Canberra the proportion of loss making sales was highest for homes
re-sold between 1 and 3 years. In Brisbane, Adelaide, Hobart and Darwin homes
which re-sold between 3 and 5 years after purchase were most likely to sell at a loss.
In Perth, homes purchased between 5 years and 7 years ago were the most likely to
sell at a loss over the quarter.

Proportion of resales at a loss by length of ownership, December quarter 2013


Region
Less than a year 1 year to 3 years 3 years to 5 years 5 years to 7 years 7 years to 10 years 10 years to 15 years 15 yrs or more
Sydney, NSW
4.0%
6.2%
3.5%
4.3%
5.3%
3.3%
0.4%
Regional NSW
13.0%
14.0%
17.7%
17.1%
16.6%
3.7%
1.0%
Melbourne, Vic
21.2%
22.0%
17.6%
4.4%
1.7%
0.8%
0.0%
Regional Vic
14.7%
21.0%
12.7%
10.7%
8.3%
1.5%
0.0%
Brisbane, Qld
14.5%
16.7%
34.5%
25.0%
4.3%
0.9%
0.1%
Regional Qld
14.4%
22.4%
46.3%
48.1%
19.6%
4.9%
1.2%
Adelaide, SA
31.6%
25.2%
32.8%
14.0%
3.3%
1.0%
0.5%
Regional SA
16.7%
26.9%
38.0%
26.3%
10.8%
1.0%
1.0%
Perth, WA
8.1%
4.5%
6.9%
10.4%
2.9%
0.2%
0.3%
Regional WA
10.7%
15.2%
28.6%
56.3%
16.9%
0.6%
0.9%
Hobart, Tas
18.2%
36.6%
38.3%
21.4%
7.8%
2.6%
3.0%
Regional Tas
28.6%
48.1%
39.1%
33.3%
7.3%
3.2%
0.0%
Darwin, NT
20.0%
10.1%
13.8%
5.2%
3.7%
1.8%
0.0%
Regional NT
0.0%
39.4%
22.2%
9.7%
5.1%
4.8%
0.0%
Canberra, ACT
0.0%
30.6%
20.9%
3.4%
0.8%
0.0%
0.6%

Unit dwellings within lifestyle markets are


generally showing the largest proportion
of loss making re-sales
Proportion of loss making re-sales December quarter 2013
Statistical Divisions nationally, houses and units
Upper Great Southern

Units

South West

Houses

South Eastern

WA

Pilbara

From a regional perspective the largest


proportion of loss making re-sales were
located in the following regions:

Perth
Midlands
Lower Great Southern
Kimberley

Far North (Qld) (28.8%)

Central
Wimmera

Upper Great Southern (WA) (28.6%)

Western District
Ovens-Murray

Northern (Qld) (28.3%)

Melbourne

VIC

Mallee

Gold Coast (Qld) (26.9%)

Loddon
Goulburn

Sunshine Coast (Qld) (25.8%)

Gippsland
East Gippsland

Wide Bay-Burnett (Qld) (25.0%)

Central Highlands
Barwon

Yorke and Lower North (SA) (25.0%)

TAS

Southern
Northern

Murray Lands (SA) (24.5%)

Mersey-Lyell
Greater Hobart

Richmond-Tweed (NSW) (23.8%)

Yorke and Lower North


South East

Mackay (Qld) (23.6%)

SA

Outer Adelaide
Northern
Murray Lands
Eyre

The lowest proportion of loss making resales were recorded in the following
regions:

Adelaide
Wide Bay-Burnett
West Moreton
Sunshine Coast
South West

Loddon (Vic) (2.1%)

Northern

QLD

North West

Sydney (NSW) (3.6%)

Mackay
Gold Coast

Perth (WA) (4.3%)

Fitzroy
Far North

Central Highlands (Vic) (4.3%)

Darling Downs
Central West

Darling Downs (Qld) (4.8%)

NT

Brisbane
Northern Territory - Bal

Barwon (Vic) (4.9%)

Darwin
Sydney

Wimmera (Vic) (6.0%)

South Eastern
Richmond-Tweed

Melbourne (Vic) (6.0%)

Northern

NSW

North Western

Illawarra (NSW) (6.3%)

Murrumbidgee

Gippsland (Vic) (6.3%)

Murray
Mid-North Coast
Illawarra
Hunter
Far West

ACT

Central West
Canberra
0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Pain & Gain: Sydney council regions


Loss,
3.6%

0% to 10% profit,
7.1%

>=100% profit,
28.7%
10% to 25%
profit,
18.0%

50% to 100%
profit,
18.5%

25% to 50%
profit,
24.1%

Only 3.6% of homes re-sold over the December


2013 quarter in Sydney sold for less than their
previous purchase price, down from 7.5% 12
months ago and at its lowest level since April
2004. Looking at the council areas, Gosford
(11.2%) was the only region with more than 10%
of their quarterly sales at a loss. On the other
hand, there were no loss-making resales over
the quarter in Burwood and Hunters Hill.

Key statistics: Sydney council regions


Gross LOSS making sales, Dec quarter 2013
Region
Ashfield
Auburn
Bankstown
Blacktown
Blue Mountains
Botany Bay
Burwood
Camden
Campbelltown
Canada Bay
Canterbury
Fairfield
Gosford
Hawkesbury
Holroyd
Hornsby
Hunters Hill
Hurstville
Kogarah
Ku-ring-gai
Lane Cove
Leichhardt
Liverpool
Manly
Marrickville
Mosman
North Sydney
Parramatta
Penrith
Pittwater
Randwick
Rockdale
Ryde
Strathfield
Sutherland Shire
Sydney
The Hills Shire
Warringah
Waverley
Willoughby
Wollondilly
Woollahra
Wyong

% of all
Average
sales hold period Median loss
4.0%
7.1
-$79,500
7.3%
5.7
-$33,000
2.3%
5.9
-$120,000
2.3%
6.1
-$140,000
5.4%
6.3
-$32,500
3.6%
9.0
-$45,000
0.0%
1.6%
8.7
-$29,500
1.8%
5.2
-$150,750
3.8%
4.7
-$60,000
2.8%
7.4
-$82,500
4.1%
10.4
-$33,400
11.2%
7.5
-$42,000
4.8%
4.9
-$69,750
2.8%
3.8
-$164,500
2.0%
8.0
-$67,500
0.0%
3.0%
5.8
-$178,860
3.7%
6.3
-$38,000
3.3%
3.8
-$34,000
3.8%
8.6
-$96,000
1.5%
7.2
-$15,000
3.2%
6.2
-$38,500
1.5%
7.2
-$230,000
0.3%
0.5
-$83,000
1.6%
7.9
-$87,500
3.7%
5.9
-$47,000
2.5%
8.0
-$36,750
3.2%
6.2
-$84,250
6.1%
7.8
-$153,750
2.8%
7.1
-$105,000
2.5%
6.6
-$330,000
2.1%
5.6
-$97,500
3.0%
8.4
-$85,000
3.1%
6.4
-$55,000
2.6%
7.7
-$65,000
2.4%
6.0
-$161,500
3.8%
6.8
-$117,660
3.7%
5.1
-$150,000
0.9%
4.5
-$50,000
8.1%
8.3
-$19,000
3.6%
8.3
-$59,500
7.8%
7.9
-$32,000

Total value
of loss
-$319,750
-$1,133,996
-$1,939,882
-$5,246,700
-$972,000
-$185,000
-$220,000
-$1,611,500
-$1,880,500
-$1,473,833
-$3,349,063
-$5,943,395
-$1,157,000
-$2,168,900
-$821,650
-$1,376,670
-$812,700
-$2,424,000
-$1,261,920
-$1,328,000
-$1,490,485
-$538,000
-$83,000
-$175,000
-$3,252,167
-$988,500
-$2,845,012
-$3,054,000
-$3,185,667
-$4,320,000
-$1,536,500
-$745,000
-$2,759,139
-$3,433,116
-$3,294,355
-$6,039,025
-$2,293,500
-$241,000
-$1,299,500
-$2,457,125
-$4,207,375

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
sales hold period Median profit
96.0%
10.3
$260,000
92.7%
7.7
$135,000
97.7%
8.7
$180,000
97.7%
9.6
$151,000
94.6%
9.8
$117,000
96.4%
8.9
$214,500
100.0%
10.1
$283,000
98.4%
9.5
$110,000
98.2%
10.1
$110,000
96.2%
9.3
$214,750
97.2%
9.0
$210,000
95.9%
11.4
$204,250
88.8%
9.5
$100,000
95.2%
11.4
$145,000
97.2%
9.9
$167,800
98.0%
11.5
$307,250
100.0%
7.9
$271,250
97.0%
9.0
$232,000
96.3%
9.4
$251,500
96.7%
10.4
$385,000
96.2%
10.1
$344,000
98.5%
9.4
$360,500
96.8%
9.5
$135,000
98.5%
10.7
$285,000
99.7%
9.4
$275,000
98.4%
10.1
$310,000
96.3%
10.6
$285,000
97.5%
9.6
$182,000
96.8%
10.4
$118,500
93.9%
10.0
$202,500
97.2%
10.2
$273,000
97.5%
8.4
$207,250
97.9%
9.5
$285,000
97.0%
8.4
$170,500
96.9%
11.1
$230,000
97.4%
8.7
$215,000
97.6%
10.6
$308,500
96.2%
9.4
$218,250
96.3%
9.9
$291,500
99.1%
9.8
$320,000
91.9%
9.5
$117,500
96.4%
9.5
$274,000
92.2%
9.6
$86,500

Total value
of profit
$32,505,287
$57,762,676
$109,395,968
$181,795,604
$50,567,013
$22,640,141
$42,639,800
$43,250,949
$85,174,088
$141,395,442
$132,326,274
$95,824,517
$124,301,246
$54,726,650
$92,697,631
$193,154,275
$11,867,700
$83,218,569
$68,063,489
$260,669,596
$72,413,629
$120,765,215
$103,832,859
$89,671,957
$111,153,774
$63,140,001
$146,511,736
$163,950,180
$112,647,816
$103,800,601
$196,223,208
$101,315,491
$168,632,258
$58,612,325
$310,429,655
$305,643,887
$266,292,084
$210,272,631
$107,489,757
$160,210,678
$23,428,850
$121,440,127
$92,246,694

Pain & Gain: Melbourne council regions


Loss,
6.0%
0% to 10% profit
9.5%

10% to 25%
profit,
12.1%

>=100% profit,
39.4%

25% to 50%
profit,
15.4%
50% to 100%
profit, 17.6%

6.0% of Melbourne homes which resold over the


December 2013 quarter sold at a loss, down
from 8.7% at the same time a year ago and at its
lowest level since November 2011.
The
Melbourne Council Area had the highest
proportion of loss-making resales (15.5%)
followed by Whittlesea (14.2%) and Melton
(12.6%). The Knox and Banyule Council Areas
recorded the lowest proportion of loss-making
resales at just 2.1%.

Key statistics: Melbourne council regions


Gross LOSS making sales, Dec quarter 2013
Region
Banyule
Bayside
Boroondara
Brimbank
Cardinia
Casey
Darebin
Frankston
Glen Eira
Greater Dandenong
Hobsons Bay
Hume
Kingston
Knox
Manningham
Maribyrnong
Maroondah
Melbourne
Melton
Monash
Moonee Valley
Moreland
Mornington Peninsula
Nillumbik
Port Phillip
Stonnington
Whitehorse
Whittlesea
Wyndham
Yarra
Yarra Ranges

% of all
Average
sales hold period Median loss
2.1%
3.8
-$30,000
3.9%
5.3
-$115,000
2.5%
3.7
-$42,000
9.9%
3.1
-$34,900
10.0%
3.1
-$19,000
4.7%
2.4
-$14,429
6.3%
3.2
-$40,000
4.3%
3.1
-$17,250
3.6%
4.1
-$29,000
7.1%
3.5
-$10,000
5.3%
3.4
-$55,000
8.3%
3.5
-$35,000
4.8%
4.4
-$28,025
2.1%
3.1
-$10,500
3.6%
3.9
-$40,000
8.8%
3.6
-$23,250
2.6%
2.5
-$36,799
15.5%
5.3
-$33,000
12.6%
3.6
-$25,000
2.7%
3.4
-$37,550
9.1%
3.4
-$44,000
6.3%
3.7
-$35,000
6.2%
3.6
-$30,000
6.1%
4.9
-$41,525
7.3%
3.8
-$26,500
6.3%
4.0
-$38,500
2.9%
3.5
-$32,500
14.2%
3.0
-$31,000
9.0%
3.8
-$19,000
6.2%
5.0
-$71,000
4.7%
3.2
-$12,000

Total value
of loss
-$308,000
-$2,460,250
-$802,490
-$2,345,564
-$446,096
-$878,950
-$1,543,000
-$439,896
-$1,158,198
-$360,910
-$1,567,000
-$1,650,447
-$1,487,551
-$161,900
-$1,095,500
-$1,253,400
-$631,799
-$4,466,890
-$862,935
-$1,011,200
-$1,521,740
-$1,929,621
-$2,024,313
-$706,638
-$1,991,896
-$2,502,575
-$2,352,900
-$1,953,747
-$841,021
-$2,278,800
-$416,500

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
sales hold period Median profit
97.9%
12.2
$273,000
96.1%
13.2
$469,000
97.5%
13.6
$517,500
90.1%
10.4
$132,500
90.0%
8.1
$77,500
95.3%
9.9
$135,000
93.7%
11.8
$274,000
95.7%
10.3
$122,000
96.4%
11.7
$296,000
92.9%
12.4
$195,000
94.7%
10.2
$227,500
91.7%
11.0
$110,000
95.2%
11.2
$227,000
97.9%
11.8
$230,500
96.4%
12.9
$401,575
91.2%
9.3
$207,875
97.4%
11.3
$205,500
84.5%
9.8
$166,200
87.4%
7.8
$81,200
97.3%
12.9
$394,250
90.9%
12.6
$270,000
93.7%
11.7
$256,500
93.8%
10.5
$193,500
93.9%
12.5
$263,000
92.7%
10.4
$225,000
93.7%
12.0
$331,000
97.1%
13.3
$379,500
85.8%
10.9
$120,500
91.0%
9.0
$96,000
93.8%
11.0
$330,000
95.3%
11.6
$179,250

Total value
of profit
$130,424,853
$201,334,586
$324,368,795
$57,050,311
$16,143,613
$79,745,306
$126,525,077
$74,567,020
$202,179,133
$58,843,305
$67,393,091
$40,377,544
$153,412,209
$93,957,033
$142,701,345
$65,304,212
$77,582,439
$115,892,405
$18,806,393
$214,328,483
$114,194,320
$131,729,714
$146,953,966
$34,213,720
$128,924,824
$176,161,823
$258,151,492
$39,865,517
$30,966,266
$129,600,729
$65,663,241

Pain & Gain: Brisbane council regions


Loss, 13.1%
>=100% profit,
27.4%

0% to 10%
profit,
20.0%

50% to 100%
profit, 11.1%

25% to 50%
profit, 13.7%

10% to 25%
profit,
14.8%

Brisbane's ongoing weak housing market


performance has resulted in a relatively high
proportion of loss-making resales over the
December2013 quarter (13.1%). Although the
proportion of loss-making resales remains high,
it has fallen from 17.3% at the same time in
2012 and is at its lowest level since July 2011.
Looking across the handful of council regions
across the city, Brisbane stands out with a
significantly lower proportion of loss-making
resales (9.3%) than Ipswich (23.0%), Moreton
Bay (19.9%) Logan (16.4%) and Redland
(15.0%).

Key statistics: Brisbane council regions


Gross LOSS making sales, Dec quarter 2013
Region
Brisbane
Ipswich
Logan
Moreton Bay
Redland

% of all
Average
Total value
sales hold period Median loss
of loss
9.3%
4.6
-$21,750
-$18,943,339
23.0%
5.1
-$23,750
-$3,287,025
16.4%
4.8
-$23,750
-$4,636,676
19.9%
4.9
-$25,000
-$9,128,028
15.0%
5.0
-$21,000
-$2,731,608

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
sales hold period Median profit
90.7%
10.1
$150,000
77.0%
9.1
$55,955
83.6%
10.5
$95,450
80.1%
8.7
$82,000
85.0%
9.3
$103,500

Total value
of profit
$839,030,006
$33,345,230
$93,749,309
$113,537,255
$61,820,786

Pain & Gain: Adelaide council regions


Loss, 12.2%
>=100% profit,
28.7%
0% to 10%
profit,
17.9%

50% to 100%
profit, 12.3%

25% to 50%
profit, 14.5%

10% to 25%
profit,
14.4%

The lack of any significant recent capital growth


in Adelaide is resulting in a relatively high
proportion of loss making resales at 12.2% over
the December 2013 quarter. 12 months earlier,
13.3% of resales were at a loss and loss-making
sales are now at their lowest level since July
2012. Over the past three months, Playford had
the highest proportion of loss making sales
(25.2%) followed by Gawler (22.7%) and
Holdfast Bay (16.2%). Walkerville recorded no
loss-making sales over the quarter and very few
were recorded in Prospect (3.2%).

Key statistics: Adelaide council regions


Gross LOSS making sales, Dec quarter 2013
Region
Adelaide
Adelaide Hills
Burnside
Campbelltown
Charles Sturt
Gawler
Holdfast Bay
Marion
Mitcham
Norwood Payneham St Peters
Onkaparinga
Playford
Port Adelaide Enfield
Prospect
Salisbury
Tea Tree Gully
Unley
Walkerville
West Torrens

% of all
Average
sales hold period Median loss
10.4%
4.5
-$40,000
13.5%
3.5
-$60,000
8.0%
4.1
-$32,000
9.4%
5.2
-$55,000
12.4%
4.2
-$25,000
22.7%
4.4
-$15,000
16.2%
5.8
-$70,000
11.6%
3.3
-$26,125
8.5%
3.8
-$21,750
8.7%
4.5
-$27,500
12.3%
4.1
-$15,000
25.2%
4.8
-$26,000
11.5%
4.5
-$21,000
3.2%
5.8
-$12,500
15.7%
4.2
-$15,250
8.7%
3.7
-$25,500
7.9%
5.5
-$55,750
0.0%
7.6%
4.2
-$21,500

Total value
of loss
-$406,725
-$445,500
-$512,266
-$1,068,500
-$2,264,884
-$711,950
-$2,232,508
-$2,016,589
-$945,200
-$1,315,280
-$2,212,891
-$1,783,348
-$2,085,633
-$12,500
-$1,600,809
-$935,250
-$1,803,500
-$913,500

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
sales hold period Median profit
89.6%
8.2
$129,000
86.5%
8.3
$110,000
92.0%
9.9
$219,750
90.6%
9.2
$147,500
87.6%
8.5
$107,750
77.3%
9.4
$89,250
83.8%
8.9
$101,500
88.4%
8.5
$125,000
91.5%
9.7
$161,500
91.3%
9.0
$148,750
87.7%
9.2
$102,500
74.8%
8.8
$63,500
88.5%
8.8
$94,000
96.8%
8.9
$154,750
84.3%
8.8
$82,500
91.3%
9.1
$102,500
92.1%
8.4
$167,500
100.0%
6.9
$151,790
92.4%
8.6
$110,500

Total value
of profit
$10,110,098
$8,420,881
$41,973,076
$18,987,952
$40,531,107
$5,313,990
$18,536,333
$37,060,734
$29,423,176
$25,351,913
$54,548,161
$12,674,246
$35,580,077
$6,127,750
$25,054,481
$29,887,452
$28,677,489
$4,367,080
$21,020,304

Pain & Gain: Perth council regions


Loss,
4.3%

0% to 10%
profit,
12.9%

>=100% profit,
44.0%

10% to 25%
profit,
18.9%

50% to 100%
profit, 9.7%

25% to 50%
profit,
10.2%

4.3% of homes re-sold in Perth over the


December 2013 quarter sold for less than the
previous purchase price compared to 8.8% a
year earlier. The proportion of loss-making
sales across Perth is at its lowest level since
July 2008. Peppermint Grove recorded no lossmaking resales over the quarter and Gosnells
(1.2%) also recorded less than 2% of resales at
a loss. The proportion of loss-making resales
was much higher in Cottesloe (13.8%), Perth
(12.3%) and Claremont (9.7%).

Key statistics: Perth council regions


Gross LOSS making sales, Dec quarter 2013
Region
Armadale
Bassendean
Bayswater
Belmont
Cambridge
Canning
Claremont
Cockburn
Cottesloe
East Fremantle
Fremantle
Gosnells
Joondalup
Kalamunda
Kwinana
Melville
Mosman Park
Mundaring
Nedlands
Peppermint Grove
Perth
Rockingham
Serpentine-Jarrahdale
South Perth
Stirling
Subiaco
Swan
Victoria Park
Vincent
Wanneroo

% of all
Average
sales hold period Median loss
7.7%
5.4
-$18,500
3.3%
2.8
-$151,500
2.6%
5.7
-$70,000
2.5%
4.2
-$124,750
2.3%
4.0
-$50,000
2.2%
6.0
-$91,667
9.7%
4.6
-$59,000
3.0%
3.9
-$181,375
13.8%
3.4
-$127,500
5.6%
4.6
-$110,750
3.6%
4.7
-$37,500
1.2%
5.5
-$103,000
2.8%
4.5
-$82,000
3.0%
4.5
-$95,000
7.0%
5.9
-$15,000
4.0%
4.0
-$102,000
7.3%
4.5
-$147,000
2.9%
4.2
-$6,000
4.0%
5.8
-$91,000
12.3%
7.6%
4.2%
2.5%
3.9%
5.3%
4.7%
4.3%
4.8%
3.9%

5.1
6.0
4.7
5.4
5.5
3.9
5.3
3.8
6.3
5.6

-$39,000
-$33,000
-$30,000
-$144,000
-$63,000
-$25,000
-$42,500
-$30,000
-$72,500
-$32,500

Total value
of loss
-$1,514,500
-$303,000
-$1,405,000
-$602,500
-$128,000
-$788,333
-$445,000
-$2,289,550
-$635,000
-$221,500
-$195,000
-$452,000
-$2,649,718
-$1,019,500
-$459,500
-$2,441,000
-$367,000
-$55,000
-$182,000
-$2,044,603
-$2,832,250
-$155,000
-$587,000
-$5,384,028
-$133,000
-$2,098,500
-$553,000
-$295,000
-$1,603,500

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
sales hold period Median profit
92.3%
7.2
$187,000
96.7%
9.2
$260,000
97.4%
8.6
$163,400
97.5%
8.3
$198,500
97.7%
9.5
$290,000
97.8%
9.1
$281,000
90.3%
10.2
$302,000
97.0%
8.3
$260,000
86.2%
11.2
$550,000
94.4%
9.8
$353,500
96.4%
9.2
$248,000
98.8%
8.6
$185,000
97.2%
9.7
$252,000
97.0%
8.3
$200,000
93.0%
7.1
$145,000
96.0%
10.3
$324,500
92.7%
9.1
$193,750
97.1%
9.0
$261,500
96.0%
10.4
$557,500
87.7%
92.4%
95.8%
97.5%
96.1%
94.7%
95.3%
95.7%
95.2%
96.1%

6.9
7.9
6.8
8.7
9.0
9.8
7.5
8.7
9.0
7.3

$94,615
$168,000
$276,500
$215,000
$230,000
$320,000
$205,000
$244,000
$262,250
$200,000

Total value
of profit
$61,963,268
$14,717,500
$56,443,073
$37,191,574
$56,739,194
$105,207,655
$11,231,000
$101,328,930
$15,720,500
$15,671,500
$31,041,400
$79,413,825
$163,184,738
$54,514,599
$26,524,600
$119,559,824
$10,873,850
$35,786,689
$28,572,875
$29,415,862
$94,394,924
$16,823,420
$56,434,201
$259,227,366
$30,136,483
$96,007,505
$41,651,500
$28,994,417
$150,284,577

Pain & Gain: Hobart council regions


Loss, 16.5%
>=100% profit,
27.8%

0% to 10%
profit,
20.0%
50% to 100%
profit, 9.4%

25% to 50%
profit, 10.3%

10% to 25%
profit,
16.1%

Hobarts ongoing weak housing fundamentals


sees it having the highest proportion of lossmaking resales of all capital cities (16.5%) over
the December 2013 quarter. The proportion of
loss-making resales is slightly lower than in
December 2012 (17.1%) and at its lowest level
since October 2012.
The Derwent Valley
(33.3%), Brighton (23.3%) and Glenorchy
(22.1%) council areas each recorded more than
one in five resales at a loss over the quarter.
The proportion of loss-making resales was much
lower in Hobart (10.4%), Kingborough (15.6%)
and Clarence (16.8%).

Key statistics: Hobart council regions


Gross LOSS making sales, Dec quarter 2013
Region
Brighton
Clarence
Derwent Valley
Glenorchy
Hobart
Kingborough
Sorell

% of all
Average
sales hold period Median loss
23.3%
5.0
-$25,060
16.8%
6.4
-$21,250
33.3%
1.7
-$8,500
22.1%
3.9
-$15,000
10.4%
4.1
-$22,500
15.6%
5.4
-$30,000
17.2%
5.7
-$35,000

Total value
of loss
-$172,560
-$1,158,700
-$75,250
-$424,250
-$357,500
-$411,850
-$236,500

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
Total value
sales hold period Median profit of profit
76.7%
7.9
$50,000
$1,396,674
83.2%
9.4
$95,000
$10,058,517
66.7%
13.3
$78,500
$856,550
77.9%
11.6
$97,000
$5,233,950
89.6%
9.1
$97,250
$17,540,893
84.4%
10.1
$97,500
$9,008,150
82.8%
8.2
$52,500
$2,679,500

Pain & Gain: Darwin council regions


Loss, 7.7%

0% to 10%
profit,
12.5%

>=100% profit,
33.6%

10% to 25%
profit,
15.2%

50% to 100%
profit, 14.8%

Across Darwin over the three months to


December 2013, 7.7% of homes re-sold at a
loss compared to a lower 6.8% a year earlier.
The relatively less developed Litchfield region
had the lowest proportion of loss making resales
(7.3%) compared to 7.6% of resales at a loss in
both Darwin and 8.0% in Palmerston.

25% to 50%
profit, 16.2%

Key statistics: Darwin council regions


Gross LOSS making sales, Dec quarter 2013
Region
Darwin
Litchfield
Palmerston

% of all
Average
sales hold period Median loss
7.6%
4.1
-$169,000
7.3%
5.9
-$150,000
8.0%
4.3
-$160,000

Total value
of loss
-$4,366,318
-$408,334
-$2,458,033

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
sales hold period Median profit
92.4%
6.7
$187,000
92.7%
6.9
$356,500
92.0%
5.1
$147,000

Total value
of profit
$58,069,542
$14,692,140
$33,379,777

Pain & Gain: Canberra


Loss, 7.4%

0% to 10%
profit,
17.6%

>=100% profit,
34.8%

Over the three months to December 2012, 5.3%


of Canberra homes re-sold at a loss compared
to 8.3% over the September 2013 quarter and a
slightly lower 7.4% over the most recent quarter.

10% to 25%
profit,
14.2%
50% to 100%
profit, 10.1%

25% to 50%
profit, 15.9%

Key statistics: Canberra council regions


Gross LOSS making sales, Dec quarter 2013
Region
Canberra

% of all
Average
sales hold period Median loss
7.4%
3.4
-$16,000

Total value
of loss
-$4,747,750

Gross PROFIT making sales, Dec quarter 2013


% of all
Average
Total value
sales hold period Median profit of profit
92.6%
9.8
$172,200
$182,145,098

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