Boroondara sellers make $232m in three months

Camberwell Town Hall - BoroondaraKey facts

  • 35.7% of sellers made a 100% or higher profit
  • Sellers in Boroondara made the highest total profit of $232m
  • 98.6% of sellers in Knox made a profit

The latest CoreLogic RP Data Pain and Gain Report  compares the sale price with purchase price for all homes sold in the most recent quarter and for which there is comprehensive data available.
Note:  The report does not cover developer sales.

The central message of the CoreLogic RP Data Pain & Gain Report is  that owners are more likely to make a profit if they hold the property for a reasonable length of time, especially when the upfront impost of stamp duty and other transaction costs are taken into account.

For example,  nationally, 3.3 per cent of sellers made a 100 per cent profit selling within one year of buying and almost passed this mark by half after 10 years of ownership.

In the September quarter last year, 6.5 per cent of sellers in Melbourne made a loss in nominal terms. This was a slight improvement on the 6.6 per cent in the June quarter and a substantial improvement on the 7.4 per cent a year ago.

On a more local basis there are two ways of looking at the data; the proportion of sellers that made a profit and the gross profit made. Obviously the total profit made was higher in the more expensive municipalities. For example the highest profit was recorded in Boroondara at $232m. By comparison the total profit in Brimbank was $66m.

The other way of assessing the data looks at the proportion of owners who made a profit. Of municipalities wholly within the metropolitan area Knox topped the list with 98.6 per cent. It was followed by Monash on 97.4 per cent, Casey with 96.6 per cent and both Glen Eira and Whitehorse with 96.4 per cent.

Interestingly this demonstrates that through medium to long-term ownership a profit can be found in more than just the most expensive parts of Melbourne.

Robert Larocca
CoreLogic 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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