In June quarter Boorandara sellers made $331m in profit

Building heights Boroondara VICOver the second quarter of 2014 RP Data recorded 70,357 residential property re-sales nationally; of these, 9.0 per cent recorded a gross loss from the original purchase price.

In Melbourne sellers recorded better results than those nationally. The report shows that 6.6 per cent of Melbourne homes re-sold over the June 2014 quarter sold at a loss, down from 8.4 per cent at the same time a year ago and lower than the 7.5 per cent recorded a quarter ago.

This is due to two reasons, the impact of the Global Financial Crisis is reducing as it becomes more distant and secondly, the market is in a rising part of the cycle.

For sellers the best news is that more than a third, 36.8 per cent, sold their home for at least double what they paid. In regional Victoria this was lower, at 28.4 per cent.

The best outcomes for sellers were found in different parts of Melbourne. A stunning 97.9 per cent of sellers in the City of Whitehorse sold at a profit. On the other side of the city, in Hobsons Bay 97.4 per cent sold at a profit, followed by 97.1 per cent in the City of Monash, 97 per cent in the City of Knox and 96.8 per cent in Bayside.

On the city’s fringe a remarkable statistic was uncovered, in Murrindindi every single seller made money in nominal terms.

Of course the largest aggregate profit on the sales was made in the inner east due to the highest underlying land values. In the City of Boroondara owners made a total of $331m in profit over the June quarter.

Robert Larocca
RP Data Victoria Housing Market Specialist

 

 

 

 

 

About Robert Larocca

Robert Larocca has built a profile over the past eight years as an expert on the Victorian residential property market. He worked for the REIV both directly and as a consultant over 8 years acting as a spokesperson, managing its research department and public policy. He has been a media and government relations consultant and spent a decade working across the three levels of government including as a Councillor and Mayor in the City of Moreland. He has well developed leadership skills in the not for profit sector and has been the Chairperson of CERES Community Environment Park for 9 years.

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