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8/19/2019 2015 09 Pain and Gain Report June Qtr
1/22
Pain and GainJune Quarter, 2015
A quarterly assessment of realised gross profit and lossbased on dwelling re-sales over the June Quarter of 2015
8/19/2019 2015 09 Pain and Gain Report June Qtr
2/22
Headline results for June quarter 2015 3
National overview 4
Houses vs units 6
Investor vs owner occupier resales 7
Hold periods 8
Focus on regional markets 10
Unit dwellings within lifestyle markets 12
Pain & Gain: Sydney council regions 13
Pain & Gain: Melbourne council regions 14
Pain & Gain: South-East Queensland council regions 15
Pain & Gain: Adelaide council regions 16
Pain & Gain: Perth council regions 17
Pain & Gain: Hobart council regions 19
Pain & Gain: Darwin council regions 20
Pain & Gain: Canberra council regions 21
About CoreLogic RP Data 22
Disclaimers 23
Contents
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3/22Pain & Gain Report | June Quarter, 2015
Executive Summary
The Pain and Gain Report is a quarterly analysis of homes which were resold over the quarter. Itcompares the most recent sale price to the previous sale price in order to determine whether the propertysold at a gross profit or gross loss. It provides a proxy for the performance of each housing market andhighlights the magnitude of profit or loss the typical seller of a home makes across those regionsanalysed.
Over the June 2015 quarter, 9.1% of all homes resold recorded a gross loss when compared to theirprevious purchase price. This figure was slightly higher than over the March 2015 quarter (8.9%) and alsoslightly higher than the 8.6% recorded over the June 2014 quarter. Although the proportion of loss-making resales rose, the figure has been fairly steady over the past 12 months. Across those dwellingswhich resold at a loss over the quarter, the total value of loss was $411.3 million with an average loss of$65,585.
While 9.1% of resales were transacted at a loss, the vast majority (90.9%) of properties resold over thequarter did so at a profit. In fact, 30.8% of homes resold for more than double their previous purchase
price. Across those homes which resold at a profit, the total value of this profit was recorded at $16.1billion with the average gross profit recorded at $259,174.
The data also highlights the fact that ownership of property, whether for investment or owner occupierpurposes, should be seen as a long-term investment. Across the country, those homes that resold at aloss had an average length of ownership of 5.3 years. Across all sales recording a gross profit theaverage length of ownership was recorded at 9.9 years, while homes which sold for more than doubletheir previous purchase price were owned for an average of 16.4 years.
The capital city housing markets continue to record a lower proportion of loss-making resales thanregional areas of the country. The trends in regional areas are shifting with the proportion of loss-making
resales trending lower in areas linked to tourism and lifestyle. On the other hand, housing markets linkedto the resources sector are generally seeing an increase in loss-making resales after housing marketconditions in many of these locations have posted a sharp correction.
3
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National Overview
Across Australia, 9.1% of all home resales over the June 2015 quarter transacted at a gross loss. The9.1% figure was slightly higher than over the previous March 2015 quarter (8.9%) and also slightly higher
than the 8.6% recorded over the June 2014 quarter. Although there was a slight rise at a national level,the proportion of loss making resales has consistently been below 10% over the past 16 monthshighlighting a significant improvement in loss-making resales which were as high as 12.9% of all resalesover the September 2012 quarter.
Throughout the combined capital cities, the proportion of loss-making resales is much lower (6.1%) thanacross the combined regional areas (15.2%). Across the combined capital cities the proportion of loss-making resales has risen from 6.0% at the end of March 2015 and is slightly higher than a year ago (also6.0%). The combined regional markets have a proportion of loss-making resales which is higher than theprevious quarter (14.4%) and higher than the 14.6% recorded a year ago.
4
Focusing on the average length of ownership for homes sold over the quarter, once again there are somedifferences between capital city and regional markets. Across the combined capital cities, homes sold ata loss over the quarter had been owned for an average of 5.3 years compared to 9.9 years for homessold at a gain and 16.4 years for those homes which sold for more than double their previous purchaseprice. The combined regional markets recorded a 6.4 year average for homes resold at a loss over thequarter compared to a 10.2 year average for homes sold at a gain and 17.6 years for homes sold for
more than double their previous purchase price.
Nationally there was $411.3 million in realised losses over the quarter at an average of $65,585 and$16.1 billion in realised profit at an average of $259,174. Across the capital cities, there were $220.3million in losses with an average of $79,402 per loss-making resale compared to $13.4 billion in profit atan average of $314,086. The combined regional areas recorded $191.0 million in losses at an average of$54,619 compared to $2.7 billion in profit at an average of $138,525. The average losses were greater inthe capital cities, however they also generally experienced much greater profits, more than double thosein regional areas.
0%
5%
10%
15%
20%
25%
30%
Jun 1997 Jun 2000 Jun 2003 Jun 2006 Jun 2009 Jun 2012 Jun 2015
Combined Capitals Combined Regional
Proportion of loss making sales, combined capitals v regional markets
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National Overview
There are some interesting trends emerging throughout the individual capital city housing markets.Across each city the proportion of loss-making resales is lower than the recent post financial crisis peak.
The proportion of loss-making resales has been largely trending lower in Sydney, Melbourne, Brisbane,Hobart and Canberra while they are trending higher across the remaining capital cities. Across Perth andDarwin in particular there has been a fairly rapid lift in the proportion of loss-making resales over recentmonths. This is mirroring broader housing market conditions where value growth has stalled, listings arerising, sales are falling and rental rates are reducing.
5
Within the regional areas of the country the proportion of loss-making resales is higher than those withinthe capital cities. The proportion of loss making resales is trending lower in Regional NSW and is fairly
flat in most other areas except for Regional SA, Regional WA and Regional NT where loss-making salesare trending higher.
When looking at the capital city and regional markets, the lowest proportions of loss making resales arecurrently found in: Sydney (2.0%), Melbourne (5.7%), Perth (8.6%) and Regional Vic (8.6%). The highestproportions of loss making resales were recorded in: Regional WA (24.5%), Regional Qld (22.5%),Regional SA (20.9%) and Regional Tas (19.9%).
0%
5%
10%
15%
20%
25%
30%
Jun 2000 Jun 2003 Jun 2006 Jun 2009 Jun 2012 Jun 2015
Sydney Melbourne
Brisbane Adelaide
0%
5%
10%
15%
20%
25%
30%35%
40%
Jun 2000 Jun 2003 Jun 2006 Jun 2009 Jun 2012 Jun 2015
Perth Hobart Darwin Canberra
Proportion of total resales at a loss over time:
Sydney vs. Melbourne vs. Brisbane vs. Adelaide
Proportion of total resales at a loss over time:
Perth vs. Hobart vs. Darwin vs. Canberra
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Houses vs Units
During the second quarter of 2015, 7.7% of houses which resold transacted for less than their previouspurchase price compared to 12.6% of unit resales. Across the capital cities, 5.0% of houses resold at a
loss compared to 8.4% of units and in regional markets 12.5% of houses resold at a loss compared to23.8% of units.
Sydney remains the only capital city housing market in which units had a lower proportion of resales at aloss (1.8%) than houses (2.2%) over the quarter. The differential in loss-making resales between housesand units was quite substantial across most capital cities and reflects the fact that house values tend toincrease at a more rapid pace than units.
Throughout the regional markets the proportion of loss-making resales for houses and units was muchhigher than in the capital cities. Across each regional area, units recorded a greater proportion of loss-making resales than houses. Regional NT (20.9% vs 52.6%), Regional Tas (23.0% vs 40.4%) and
Regional SA (19.1% vs 36.1%) had the largest gaps between the proportion of loss-making house andunit sales.
6
Houses Units
Region Pain Gain Pain Gain
Sydney 2.2% 97.8% 1.8% 98.2%
Regional NSW 8.1% 91.9% 13.1% 86.9%
Melbourne 3.5% 96.5% 10.5% 89.5%
Regional VIC 8.4% 91.6% 10.3% 89.7%Brisbane 7.2% 92.8% 16.6% 83.4%
Regional Qld 17.1% 82.9% 31.3% 68.7%
Adelaide 8.9% 91.1% 11.6% 88.4%
Regional SA 19.1% 80.9% 36.1% 63.9%
Perth 11.5% 88.5% 18.7% 81.3%
Regional WA 19.6% 80.4% 22.1% 77.9%
Hobart 7.4% 92.6% 14.1% 85.9%
Regional TAS 23.0% 77.0% 40.4% 59.6%
Darwin 13.2% 86.8% 25.3% 74.7%
Regional NT 20.9% 79.1% 52.6% 47.4%
Australian Capital Territory 4.5% 95.5% 22.5% 77.5%
National 7.7% 92.3% 12.6% 87.4%
Capital City 5.0% 95.0% 8.4% 91.6%
Regional 12.5% 87.5% 23.8% 76.2%
Proportion of total resales at a loss/gain, houses vs. units, June 2015 quarter
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Investor vs Owner Occupier Resales
Throughout the second quarter of 2015, 7.7% of owner occupiers and 11.9% of investors resold theirproperties at a loss. Across each capital city and rest of state market except for Darwin, the proportion of
loss making resales was greater for investors than it was for owner occupiers.
4.9% of capital city homes which were resold by owner occupiers sold at a loss over the second quarterof the year compared to 8.3% of investor owned homes. The biggest discrepancy between sales at aloss for owner occupiers and investors was found in the ACT (7.2% vs 19.1%), Melbourne (3.2% vs9.9%) and Brisbane (7.6% vs 12.3%). The difference between the level of loss between owner occupierand investor resales was much lower elsewhere while a lower proportion of investors resold at a lossrelative to owner occupiers in Darwin.
In regional areas of the country the proportion of loss-making sales was higher than across the capitalcities and the gap between loss-making owner occupier resales (12.9%) and investor resales (19.6%)
was much greater.
With housing finance data having showed a surge in housing investment over recent years, investorsshould pay attention to these figures. When it comes time to re-sell a property owner occupier stock ismuch more likely to turn a gross profit than investment stock. This is most likely due to the fact thatinvestment is more prevalent in the unit market than detached houses. As we’ve already shown, unitsare more susceptible to being resold at a loss than houses are. Furthermore, investor housing stockgenerally has much more narrow overall appeal than owner occupier housing stock. Arguably, transactingat a gross loss is easier for an investor to accept, as the loss can be offset against future capital gains.
7
Owner Occupied Investor
Region Pain Gain Pain Gain
Sydney 1.9% 98.1% 2.5% 97.5%
Regional NSW 8.1% 91.9% 10.0% 90.0%
Melbourne 3.2% 96.8% 9.9% 90.1%
Regional VIC 7.8% 92.2% 11.4% 88.6%
Brisbane 7.6% 92.4% 12.3% 87.7%
Regional Qld 18.5% 81.5% 28.0% 72.0%
Adelaide 8.9% 91.1% 13.6% 86.4%
Regional SA 18.2% 81.8% 20.3% 79.7%
Perth 7.9% 92.1% 8.4% 91.6%
Regional WA 22.4% 77.6% 25.9% 74.1%
Hobart 12.4% 87.6% 18.9% 81.1%
Regional TAS 17.4% 82.6% 21.4% 78.6%
Darwin 17.9% 82.1% 12.7% 87.3%
Regional NT 25.0% 75.0% 28.6% 71.4%
Australian Capital Territory 7.2% 92.8% 19.1% 80.9%
National 7.7% 92.3% 11.9% 88.1%
Capital City 4.9% 95.1% 8.3% 91.7%
Regional 12.9% 87.1% 19.6% 80.4%
Proportion of to tal resales at a loss/gain, owner occupied vs. investors,
June 2015 quarter
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Hold Periods
The second quarter of 2015 saw that the typical house which resold at a loss across the country hadbeen owned for 5.7 years compared to 6.3 years across unit resales. Of those homes resold at a profit,
houses had typically been owned for an average of 10.3 years compared to 9.0 years for units.
In most capital cities the average length of ownership for loss-making resales of houses was shorter thanfor units. The exceptions were Perth and Canberra where hold periods for houses were longer andAdelaide where it was the same for both houses and units. Capital city houses which resold at a loss hadan average hold period of 5.2 years compared to 5.4 years for units. Of those capital city homes whichsold at a profit, the average hold periods were 10.3 years for a house and 8.9 years for a unit. Theaverage hold periods for homes selling at a profit tended to be longer in Melbourne and shorter in Darwin.
Looking at regional areas, the typical hold period for loss-making resales was 6.0 years for houses and7.2 years for units and for profit-making resales it was 9.6 years for houses and 10.4 years for units. It is a
little surprising to note that profit-making resale houses in regional areas of the country actually had ashorter average hold period (9.6 years) than those within the capital cities (10.3 years).
8
Houses Units
Region Pain Gain Pain Gain
Sydney 6.4 10.6 7.2 8.2Regional NSW 6.4 10.2 7.6 9.1
Melbourne 4.0 11.2 5.0 9.7
Regional VIC 5.3 10.9 6.2 9.8
Brisbane 5.7 10.2 5.9 9.0
Regional Qld 6.0 10.4 7.3 9.7
Adelaide 5.0 9.3 5.0 9.0
Regional SA 6.1 10.0 5.5 10.7
Perth 5.2 8.9 4.8 9.3
Regional WA 5.9 10.3 6.4 11.9
Hobart 5.1 10.6 5.2 9.9
Regional TAS 5.6 10.7 5.3 10.9
Darwin 4.2 8.0 4.9 7.1
Regional NT 5.3 6.7 6.9 6.5
Australian Capital Territory 5.1 10.6 4.3 9.3
National 5.7 10.3 6.3 9.0
Capital City 5.2 10.3 5.4 8.9
Regional 6.0 9.6 7.2 10.4
Average ho ld period of resales at a loss/gain, houses vs. units,
June 2015 quarter
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Hold Periods
Properties held for a short period are much more susceptible to loss
Across resales of homes throughout the June 2015 quarter, those homes that were held for only a shortperiod of time proved to be much more susceptible to loss. Although home values increased over thepast 12 months, 12.8% of owners who purchased and resold in the same year recorded a gross loss(keep in mind these sales are only a fraction of all resales). Homes resold after being held for between 5and 7 years were the most likely to record a gross loss followed by those held for between 3 and 5 years.The data also reiterates the long-term nature of housing investment as well as relatively weaker growth invalues over the past decade. Far fewer homes are transacted at a loss when they are held for a decadeor more.
Looking across the regions of the country there is a divergence in the proportion of total resales that wereat a loss and how long these homes have been owned for. In Sydney, Melbourne, Perth and Canberra,
homes previously purchased and sold over the past year were most likely to record a gross loss. InDarwin homes previously purchased over a year ago but less than three years ago were the most likely torecord a gross loss. In Adelaide and Hobart, homes purchased between three and five years ago weremore regularly sold at a loss over the past quarter and in Brisbane homes purchase between five andseven years ago were the most likely to sell at a loss. The data highlights the divergent trends acrosshousing markets over time. It also highlights the long-term nature of housing investment is evident withvery few homes recording a gross loss on sale once they have been owned for more than 10 years.
9
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Focus on Regional Markets
Major mining regions
Trends across some of the major regions of the country which are intrinsically linked with the resourcessector have been analysed and in most instances a heightened level of loss-making sales is evident asthe mining investment boom slows. Over the June 2015 quarter, 47.6% of resold properties in Mackaysold at a loss. Across the other regions analysed the figures were recorded at: 35.6% in Fitzroy, 10.9% inthe Hunter Valley (excluding Newcastle), 19.3% in Outback SA and 32.6% in Outback WA. The HunterValley is the one outlier here however, its economy is a somewhat more diversified than the other miningregions we have analysed.
To put the rapid change in conditions in certain regions into perspective, a year ago the proportion ofloss-making resales were recorded at: 24.4% in Fitzroy, 11.4% in Hunter Valley (excluding Newcastle),34.6% in Mackay, 20.0% in Outback SA and 18.8% in Outback WA. The slowdown in resource related
investment and falling commodity prices is having a big impact on housing markets across these regions.This is despite the fact that many of these regions experienced a significant boom in home values ascommodity prices and investment in the mining sector surged in the years leading up to 2012. Manyhome owners wish to sell their homes in these regions, unfortunately buyer demand remains relativelylow in these markets.
10
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Jun 1995 Jun 1999 Jun 2003 Jun 2007 Jun 2011 Jun 2015
Fitzroy
Hunter Valley (ex Newcastle)
MackayOutback SA
Outback WA
Proportion of total resales at a loss over time:
major resource regions
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Focus on Regional Markets
Major coastal regions
While the markets linked to the resources sector have seen their proportion of loss-making sales rise overrecent years the coastal markets have seen conditions improve. Across the regions we analysed, theproportion of loss-making resales has been recorded at: 2.7% in Illawarra, 2.8% in Newcastle-LakeMacquarie, 14.9% in Richmond-Tweed, 11.4% in Mid-North Coast, 5.6% in Geelong, 19.9% in Bunbury,25.3% in Cairns, 19.8% on the Gold Coast and 17.9% on the Sunshine Coast.
11
All of these regions are nowshowing a proportion of loss-making resales which is lowerthan the recent peak. To put thecurrent figures into perspective, a
year ago the proportion of loss-making resales across theseregions was recorded at: 3.3% inIllawarra, 2.8% in Newcastle-Lake Macquarie, 17.2% inRichmond-Tweed, 14.5% in Mid-North Coast, 3.1% in Geelong,13.3% in Bunbury, 26.3% inCairns, 22.6% on the Gold Coastand 20.3% on the SunshineCoast. Geelong and Bunbury are
the only coastal / lifestyle regionanalysed in which loss-makingresales are now higher than theywere a year ago. The chartsshow that there has been a fairlysharp decline in loss makingresales over recent times inRichmond-Tweed, Mid-NorthCoast, Cairns, Gold Coast andSunshine Coast. This isreflective of the returning value
growth and overall improvinghousing market conditions inthese areas.
0%
5%
10%
15%
20%
25%
30%
35%
Jun 1995 Jun 1999 Jun 2003 Jun 2007 Jun 2011 Jun 2015
IllawarraNewcastle Lake Macquarie
Richmond-TweedMid North Coast
0%
10%
20%
30%
40%
50%
60%
Jun 1995 Jun 1999 Jun 2003 Jun 2007 Jun 2011 Jun 2015
GeelongBunburyCairnsGold CoastSunshine Coast
Proportion of total resales at a loss over time:
major coastal markets
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Unit dwellings within lifestyle markets are generallyshowing the largest proportion of loss-making re-sales
Proportion of loss-making re-sales, June Quarter
2015 non-capital ci ty SA4 regions and GCCSA
regions, houses and units
12
From a regional perspective thelargest proportion of loss-makingresales were located in the followingregions:
Mackay (Qld) (47.6%)
Fitzroy (Qld) (35.6%)
Townsville (Qld) (34.0%)
Outback (WA) (32.6%)
Wide Bay (Qld) (31.9%)
Outback (NT) (30.6%)
Cairns (Qld) (25.3%)
Wheat Belt (WA) (24.4%)
South East (WA) (23.2%)
Warrnambool & South West (Vic)(21.0%)
The lowest proportion of loss-making resales were recorded in thefollowing regions:
Sydney (NSW) (2.0%)
Illawarra (NSW) (2.7%)
Newcastle and Lake Macquarie(NSW) (2.8%)
Toowoomba (Qld) (3.4%)
Southern Highlands andShoalhaven (NSW) (4.5%)
Bendigo (Vic) (4.6%)
Geelong (Vic) (5.6%)
Melbourne (Vic) (5.7%)
Ballarat (Vic) (6.8%)
North West (Vic) (8.3%).
0% 10% 20% 30% 40% 50% 60% 70% 80%
Australian Capital Territory
Capital Region
Central West
Coffs Harbour - Grafton
Far West and Orana
Hunter Valley exc Newcastle
Illawarra
Mid North Coast
Murray
New England and North West
Newcastle and Lake Macquarie
Richmond - Tweed
Riverina
Southern Highlands and Shoalhaven
Sydney
Darwin
Northern Territory - Outback
Brisbane
Cairns
Darling Downs - Maranoa
Fitzroy
Gold Coast
Mackay
Queensland - OutbackSunshine Coast
Toowoomba
Townsville
Wide Bay
Adelaide
Barossa - Yorke - Mid North
South Australia - Outback
South Australia - South East
Hobart
Launceston and North East
South East
West and North West
Ballarat
Bendigo
Geelong
Hume
Latrobe - Gippsland
Melbourne
North West
Shepparton
Warrnambool and South West
Bunbury
Perth
Western Australia - Outback
Western Australia - Wheat Belt
A C T
N S W
N T
Q L D
S A
T A S
V I C
W A
Units
Houses
ACT
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Pain & GainSydney council regions
Only 2.0% of homes resold in Sydney over the second quarter of 2015 sold at a loss, down from 2.4%over the first quarter and also lower than a year earlier (2.7%). The Burwood, Hunters Hill, Willoughby
and Wollondilly council areas each recorded no resales at a loss over the quarter. The Mosman (7.5%),Gosford (4.1%) and Pittwater (4.0%) council areas each recorded the highest proportions of loss-makingresales throughout Sydney over the quarter.
13
Loss2.0%
0-25%8.6%
25-50%21.5%
50-75%19.4%
75-100%11.8%
>100%36.7%
Gross loss-making sales, Jun-15 qtr Gross profit-making sales, Jun-15 qtr
Region% of all
sales
Avg hold
period
Median
loss
Total value of
loss
% of all
sales
Avg hold
period
Median
profit
Total value of
profit
Ashfield 2.0% 7.3 -$172,500 -$345,000 98.0% 10.3 $433,000 $53,747,100
Auburn 1.7% 6.0 -$173,500 -$679,150 98.3% 7.9 $235,000 $79,343,627Bankstown 3.1% 6.2 -$82,500 -$1,920,099 96.9% 8.3 $332,500 $164,612,309
Blacktown 1.6% 5.0 -$140,000 -$3,264,780 98.4% 9.4 $300,000 $318,428,975
Blue Mountains 1.8% 5.7 -$210,000 -$1,129,000 98.2% 9.5 $185,000 $71,691,047Botany Bay 1.3% 2.2 -$400,000 -$400,000 98.7% 11.6 $348,000 $36,587,619
Burwood 100.0% 9.6 $408,750 $52,150,825Camden 0.8% 4.2 -$110,500 -$221,000 99.2% 9.3 $239,000 $74,270,003
Campbelltown 0.9% 5.6 -$81,750 -$684,500 99.1% 9.6 $240,000 $172,405,178Canada Bay 1.5% 7.1 -$175,000 -$844,500 98.5% 8.8 $345,500 $178,667,241
Canterbury 2.4% 6.4 -$135,000 -$2,296,550 97.6% 8.8 $300,000 $178,695,010
Fairfield 2.0% 9.1 -$82,500 -$817,999 98.0% 11.4 $328,000 $158,811,177Gosford 4.1% 8.5 -$85,000 -$6,025,982 95.9% 9.6 $191,750 $199,609,272
Hawkesbury 2.8% 7.2 -$149,000 -$1,746,300 97.2% 10.8 $240,000 $78,378,102Holroyd 2.0% 8.4 -$350,000 -$3,370,499 98.0% 9.8 $268,000 $125,473,210
Hornsby 2.8% 6.4 -$163,000 -$2,482,368 97.2% 11.8 $522,500 $229,730,529Hunters Hill 100.0% 10.4 $590,000 $28,871,500
Hurstville 2.0% 5.3 -$487,000 -$1,828,667 98.0% 9.3 $386,500 $119,427,251
Kogarah 3.4% 4.3 -$298,000 -$1,779,000 96.6% 8.7 $355,000 $72,753,780Ku-ring-gai 1.1% 5.6 -$70,000 -$1,348,000 98.9% 9.5 $650,000 $363,556,155
Lane Cove 1.7% 1.4 -$1,589,000 -$3,178,000 98.3% 8.8 $351,000 $64,641,700Leichhardt 0.9% 12.1 -$67,500 -$135,000 99.1% 8.7 $550,000 $141,289,880
Liverpool 0.8% 9.4 -$54,000 -$443,000 99.2% 9.4 $257,000 $165,912,693Manly 2.4% 5.1 -$617,500 -$2,641,020 97.6% 9.7 $480,000 $104,348,204
Marrickville 1.1% 4.5 -$121,250 -$242,500 98.9% 9.6 $413,000 $88,366,280Mosman 7.5% 5.0 -$67,000 -$719,000 92.5% 9.8 $540,000 $69,928,292
North Sydney 0.9% 7.9 -$60,000 -$235,000 99.1% 9.6 $385,000 $178,835,742
Parramatta 2.6% 5.5 -$202,000 -$4,072,389 97.4% 9.8 $305,000 $211,983,770
Penrith 2.1% 5.2 -$217,000 -$3,053,850 97.9% 10.3 $245,000 $210,107,923Pittwater 4.0% 6.5 -$125,000 -$1,450,000 96.0% 9.8 $412,000 $117,644,137
Randwick 1.8% 7.8 -$364,834 -$1,835,667 98.2% 10.8 $475,000 $209,060,406
Rockdale 1.4% 7.8 -$141,500 -$1,034,000 98.6% 8.4 $312,500 $114,006,332
Ryde 1.3% 2.7 -$225,000 -$1,447,000 98.7% 9.9 $480,500 $236,212,850
Strathfield 2.4% 8.1 -$165,000 -$1,157,000 97.6% 7.7 $285,000 $68,386,001
Sutherland Shire 2.8% 7.7 -$202,500 -$4,052,860 97.2% 10.8 $356,000 $313,115,598
Sydney 1.7% 5.6 -$200,000 -$3,977,532 98.3% 8.6 $320,000 $354,791,754
The Hills Shire 1.8% 5.7 -$316,000 -$3,288,050 98.2% 11.1 $646,000 $346,321,256
Warringah 3.5% 5.1 -$301,000 -$4,957,000 96.5% 9.5 $405,000 $226,781,665
Waverley 0.6% 6.7 -$145,000 -$145,000 99.4% 9.5 $493,000 $115,063,094
Willoughby 100.0% 9.9 $508,750 $185,119,757
Wollondilly 100.0% 9.8 $197,500 $42,234,937
Woollahra 1.8% 7.7 -$147,500 -$580,000 98.2% 9.0 $430,000 $133,918,403
Wyong 2.8% 9.0 -$74,900 -$3,715,400 97.2% 9.2 $142,000 $149,843,470
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15/22Pain & Gain Report | June Quarter, 2015
Loss9.8%
0-25%39.6%
25-50%14.2%
50-75%7.0%
75-100%3.4%
>100%26.1%
Pain & GainSouth-East Queensland council regions
Across Brisbane, the proportion of loss-making resales has trended lower over the past few years andwas recorded at 9.8% over the June 2015 quarter, up from 9.3% the previous quarter but lower than the
10.9% a year earlier. Across South-East Queensland, the Toowoomba (3.0%), Brisbane (6.3%) andRedland (6.8%) council area have significantly lower proportions of loss-making sales compared to allother regions where the proportion of loss-making resales was in double digits. The council areas withthe highest proportion of loss-making resales were Somerset (26.1%), Gold Coast (19.9%) Scenic Rimand Lockyer Valley (both 19.4%).
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Gross loss-making sales, Jun-15 qtr Gross profit-making sales, Jun-15 qtr
Region% of all
sales
Avg hold
period
Median
loss
Total value of
loss
% of all
sales
Avg hold
period
Median
profit
Total value of
profit
Brisbane 6.3% 5.4 -$20,000 -$11,054,181 93.7% 10.1 $150,000 $810,220,477
Ipswich 19.0% 6.3 -$15,000 -$2,319,298 81.0% 9.5 $62,850 $40,013,169
Gold Coast 19.9% 7.1 -$30,700 -$35,022,975 80.1% 10.1 $90,000 $369,583,351
Lockyer Valley 19.4% 3.9 -$49,000 -$391,000 80.6% 9.7 $44,000 $2,358,200
Logan 13.6% 6.0 -$19,000 -$3,694,891 86.4% 10.6 $92,750 $109,064,044
Moreton Bay 14.4% 6.1 -$23,000 -$6,456,518 85.6% 8.6 $71,000 $120,930,826
Redland 6.8% 5.4 -$15,000 -$2,300,000 93.2% 10.2 $100,000 $76,372,359
Scenic Rim 19.4% 4.7 -$33,500 -$353,500 80.6% 11.1 $128,000 $4,143,940
Somerset 26.1% 6.2 -$18,000 -$665,500 73.9% 12.0 $101,500 $3,974,000
Sunshine Coast 17.9% 7.2 -$35,000 -$18,555,093 82.1% 10.1 $94,000 $193,308,321Toowoomba 3.0% 5.1 -$36,000 -$1,264,450 97.0% 8.3 $85,000 $52,919,438
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Pain, 9.6%0-25%37.4%
25-50%15.1%
50-75%8.2%
75-100%3.8%
>100%25.9%
Pain & Gain Adelaide council regions
Over the June 2015 quarter, 9.6% of Adelaide resales were at a gross loss, which was up from 9.3% atthe end of the first quarter of 2015 but lower than the 10.9% over the same quarter last year. The
proportion of loss-making resales was relatively lower in the Prospect (2.0%), Holdfast Bay (2.7%) andNorwood Payneham and St Peters (2.7%) council areas. The highest proportions of loss-making resalesover the quarter were recorded in Playford (28.3%), Mallala (20.0%) and Gawler (19.8%).
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Gross loss-making sales, Jun-15 qtr Gross profit-making sales, Jun-15 qtr
Region% of all
sales
Avg hold
period
Median
loss
Total value of
loss
% of all
sales
Avg hold
period
Median
profit
Total value of
profit
Adelaide 9.1% 4.8 -$19,900 -$329,650 90.9% 8.8 $137,500 $13,348,265
Adelaide Hills 8.3% 4.6 -$9,000 -$107,000 91.7% 9.9 $105,000 $12,609,898
Burnside 5.6% 5.0 -$42,500 -$412,333 94.4% 9.8 $176,750 $36,222,892
Campbelltown 8.2% 4.8 -$32,000 -$1,283,000 91.8% 8.5 $129,900 $23,010,430
Charles Sturt 12.4% 4.5 -$20,000 -$1,754,861 87.6% 8.6 $94,000 $37,110,568
Gawler 19.8% 4.7 -$16,500 -$601,950 80.2% 8.8 $58,000 $6,408,101
Holdfast Bay 2.7% 8.3 -$25,000 -$131,500 97.3% 9.1 $120,000 $23,523,282
Light 12.5% 5.8 -$9,000 -$9,000 87.5% 7.1 $35,500 $547,050
Mallala 20.0% 3.3 -$79,500 -$79,500 80.0% 9.3 $85,750 $418,500
Marion 10.1% 5.6 -$21,000 -$1,343,656 89.9% 9.3 $118,000 $34,727,362
Mitcham 5.0% 4.3 -$46,500 -$1,281,000 95.0% 9.8 $156,500 $35,323,027
Mount Barker 15.5% 4.8 -$15,000 -$465,100 84.5% 7.8 $62,525 $7,368,728
Norwood Payneham StPeters 2.7% 3.8 -$115,000 -$459,000 97.3% 9.6 $176,500 $25,357,201
Onkaparinga 7.2% 4.9 -$18,000 -$1,519,167 92.8% 9.4 $93,313 $46,778,848
Playford 28.3% 5.6 -$17,000 -$1,321,400 71.7% 9.2 $46,750 $9,539,676
Port Adelaide Enfield 9.5% 4.9 -$17,250 -$1,492,660 90.5% 8.6 $90,000 $38,340,324
Prospect 2.0% 4.5 -$43,000 -$43,000 98.0% 10.3 $158,250 $12,444,877
Salisbury 10.6% 5.1 -$10,500 -$791,360 89.4% 8.9 $70,000 $30,081,829
Tea Tree Gully 5.0% 4.9 -$19,000 -$445,500 95.0% 10.0 $115,000 $30,892,718
Unley 6.5% 4.0 -$9,000 -$633,000 93.5% 9.7 $210,000 $29,712,780
Walkerville 9.5% 2.1 -$175,000 -$350,000 90.5% 11.0 $165,000 $4,559,141West Torrens 9.5% 4.6 -$21,000 -$1,387,240 90.5% 9.6 $120,625 $24,076,301
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Loss17.1%
0-25%29.8%
25-50%12.0%
50-75%7.9%
75-100%5.8%
>100%27.4%
Loss13.5%
0-25%37.2%
25-50%11.9%
50-75%4.5%
75-100%2.4%
>100%30.5%
Pain & GainHobart counci l regions
13.5% of Hobart homes resold over the June 2015 quarter were at a loss compared to 13.1% at the endof the previous quarter and 14.4% a year ago. Despite a rise over the quarter, the proportion of loss-
making resales is trending lower. Brighton (27.5%), Clarence (18.4%) and Derwent Valley (16.7%)council areas had the highest proportion of loss-making resales over the quarter. The proportion of loss-making resales was lowest in Kingborough (6.0%), Hobart (7.8%) and Glenorchy (15.0%) council areas.
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Darwin council regions
Across Darwin over the three months to June 2015, 17.1% of homes resold at a loss compared to 8.7%at the end of the previous quarter and 5.9% a year ago. The proportion of loss-making resales iscurrently at its highest level since the three months to August 2003. The relatively less developedLitchfield region has recorded the highest proportion of loss-making resales over the quarter (21.4%)compared to 17.0% in Palmerston and 16.5% in Darwin.
Gross loss-making sales, Jun-15 qtr Gross profit -making sales, Jun-15 qtr
Region % of all sales Avg hold
period
Median
loss
Total value
of loss% of all sales
Avg hold
period
Median
profit
Total value
of profit
Brighton 27.5% 5.4 -$10,000 -$126,900 72.5% 7.8 $31,000 $1,561,000
Clarence 18.4% 4.8 -$15,500 -$1,198,500 81.6% 10.1 $72,000 $15,858,164
Derwent Valley 16.7% 4.2 -$10,000 -$44,000 83.3% 11.6 $113,000 $1,841,500
Glenorchy 15.0% 5.7 -$17,750 -$805,122 85.0% 11.0 $65,000 $10,989,777
Hobart 7.8% 4.7 -$35,000 -$1,032,334 92.2% 10.1 $100,000 $23,917,739
Kingborough 6.0% 4.1 -$22,500 -$285,000 94.0% 10.3 $85,000 $12,987,745
Sorell 15.6% 7.8 -$30,000 -$195,000 84.4% 13.6 $119,000 $3,004,466
Gross loss-making sales, Jun-15 qtr Gross profit-making sales, Jun-15 qtr
Region% of all
sales
Avg hold
period
Median
loss
Total value of
loss
% of all
sales
Avg hold
period
Median
profit
Total value of
profit
Darwin 16.5% 4.1 -$50,000 -$2,947,756 83.5% 8.2 $185,000 $29,666,995
Litchfield 21.4% 3.2 -$217,500 -$1,199,000 78.6% 8.4 $317,500 $6,376,300
Palmerston 17.0% 5.9 -$49,125 -$1,185,591 83.0% 6.6 $135,000 $14,583,070
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Loss10.6%
0-25%32.8%
25-50%16.6%
50-75%6.3%
75-100%4.6%
>100%29.0%
Pain & GainCanberra council regions
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Over the three months to June 2015, 10.6% of Canberra homes re-sold at a loss compared to 9.8% overthe previous quarter and 11.3% a year earlier.
Gross loss-making sales, Jun-15 qtr Gross profit-making sales, Jun-15 qtr
Region% of all
sales
Avg hold
period
Median
loss
Total value of
loss
% of all
sales
Avg hold
period
Median
profit
Total value of
profit
Unincorporated ACT 10.6% 4.5 -$30,000 -$3,937,923 89.4% 10.2 $163,250 $176,845,311
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About CoreLogic RP Data
CoreLogic RP Data is a wholly owned subsidiary of CoreLogic (NYSE: CLGX),which is the largest data and analyticscompany in the world with revenues of $1.3Bn USD from 50,000 business and government customers and over 1million end users. CoreLogic RP Data provides property information, analytics and services across Australia andNew Zealand and is currently developing and growing partnerships throughout Asia.
With Australia’s most comprehensive property databases, the company’s combined data offering is derived frompublic, contributory and proprietary sources and includes over 500 million decision points spanning over threedecades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location,hazard risk and related performance information. With over 11,000 customers and 120,000 end users, CoreLogic RPData is the leading provider of property data, analytics and related services to consumers, investors, real estate,mortgage, finance, banking, insurance, developers, wealth management and government.
CoreLogic RP Data delivers value to clients through unique data, analytics, workflow technology, advisory and geospatial services. Clients rely on CoreLogic RP Data to help identify and manage growth opportunities, improveperformance and mitigate risk. CoreLogic RP Data employs over 480 people at nine locations across Australia andin New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au
Granular Data and Analytics Driving Growth in your Business CoreLogic RP Data produces an advanced suite of housing market analytics that provides key insights forunderstanding housing market conditions at a granular geographic level. Granular data is often used for portfolioanalysis and benchmarking, risk assessments and understanding development feasibility and market sizing. It givesindustry professionals valuable modules which provide essential analytics and insights for decision making andstrategy formation within the residential property asset class. We can tailor reports to suit your businessrequirements. Call us on 1300 734 318 or email us at [email protected] or visit us atwww.corelogic.com.au
Market Scorecard: Monitor and measure performance of an individual office or a Franchise brand month on monththrough a detailed view of the Real Estate Listing and Sales market share across Australia. With the ability to gathermarket share statistics within your active market this product is designed to identify the competing brands andindependents at a suburb, postcode, user defined territory and State level. Easily locate growth opportunities and
market hotspots allowing you to view the performance of the established offices in these new areas of interest.Market Trends: Detailed housing market indicators down to the suburb level, with data in time series or snapshotdelivered monthly. CoreLogic RP Data’s Market Trends data is segmented across houses and units. The MarketTrends data includes key housing market metrics such as median prices, median values, transaction volumes, rentalstatistics, vendor metrics such as average selling time and vendor discounting rates.
CoreLogic RP Data Indices: The suite of CoreLogic RP Data Indices range from simple market measurementssuch as median prices through to repeat sales indices and our flagship hedonic home value indices. The CoreLogicRP Data Hedonic index has been specifically designed to track the value of a portfolio of properties over time and isrelied upon by Australian regulators and industry as the most up to date and accurate measurement of housingmarket performance.
Economist Pack: A suite of indices and indicators designed specifically for Australian economic commentators who
require the most up to date and detailed view of housing market conditions. The economist pack includes theCoreLogic RP Data Hedonic indices for capital cities and ‘rest of state’ indices, the stratified hedonic index, hedonictotal return index, auction clearance rates and median prices.
Investor Concentration Report: Understanding ownership concentrations is an important part of assessing risk.Areas with high investor concentrations are typically allocated higher risk ratings due to the over-representation of aparticular segment of the market. Through a series of rules and logic, CoreLogic RP Data has flagged the likelyownership type of every residential property nationally as either owner occupied, investor owned or governmentowned.
Mortgage Market Trend Report: CoreLogic RP Data is in a unique position to monitor mortgage related housingmarket activity. Transaction volumes, dwelling values and mortgage related valuation events all comprise ourMortgage market trend report which provides an invaluable tool for mortgage industry benchmarking and strategy.
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8/19/2019 2015 09 Pain and Gain Report June Qtr
21/22Pain & Gain Report | June Quarter, 2015
Disclaimers
In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a numberof external sources. CoreLogic does not warrant its accuracy or completeness and to the full extent allowed by lawexcludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any otherperson or body corporate arising from or in connection with the supply or use of the whole or any part of theinformation in this publication through any cause whatsoever and limits any liability it may have to the amount paid to
CoreLogic for the supply of such information.
Queensland Data
Based on or contains data provided by the State of Queensland (Department of Natural Resources and Mines) 2015.In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warrantyin relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability(including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage)relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws.
South Australian Data
This information is based on data supplied by the South Australian Government and is published by permission. The SouthAustralian Government does not accept any responsibility for the accuracy or completeness of the published information orsuitability for any purpose of the published information or the underlying data.
New South Wales Data
Contains property sales information provided under licence from the Land and Property Information (“LPI”). RP Data isauthorised as a Property Sales Information provider by the LPI.
Victor ian Data
The State of Victoria owns the copyright in the Property Sales Data which constitutes the basis of this report andreproduction of that data in any way without the consent of the State of Victoria will constitute a breach of theCopyright Act 1968 (Cth). The State of Victoria does not warrant the accuracy or completeness of the informationcontained in this report and any person using or relying upon such information does so on the basis that the State ofVictoria accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the informationsupplied.
Western Australian DataBased on information provided by and with the permission of the Western Australian Land Information Authority (2014)trading as Landgate.
Australian Capital Terr itory Data
The Territory Data is the property of the Australian Capital Territory. No part of it may in any form or by any means(electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system ortransmitted without prior written permission. Enquiries should be directed to: Director, Customer Services ACT Planningand Land Authority GPO Box 1908 Canberra ACT 2601.
Tasmanian Data
This product incorporates data that is copyright owned by the Crown in Right of Tasmania. The data has been used in theproduct with the permission of the Crown in Right of Tasmania. The Crown in Right of Tasmania and its employees and
agents:a) give no warranty regarding the data’s accuracy, completeness, currency or suitability for any particular purpose; andb) do not accept liability howsoever arising, including but not limited to negligence for any loss resulting from the use of orreliance upon the data.
Base data from the LIST © State of Tasmania http://www.thelist.tas.gov.au
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Email us at [email protected]
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