Melbourne property market all gain, no pain
Melbourne has the highest proportion of profitmaking houses in the nation, new data shows.
CoreLogic’s latest Pain & Gain report, which analyses the percentage of sellers who made a profit compared to a loss across metro and regional markets, found just one in 100 houses in Melbourne is selling at a loss, and the proportion of profitmaking units is rising.
It’s clearly a sellers’ market – 98.9% of houses and 90.4% of units sold in the June quarter went for more than their owners originally paid.
The report also indicated the length of time home-owners are holding onto their dwellings to sell for a profit.
Houses typically enjoyed price gains when held for 8.9 years, and units for 7.9 years. In comparison, homeowners were more likely to face a loss come sale time if they sold after 3.4 years and after 6 years for units, supporting the view that property should be a long-term investment.
Remember the flip-side of a seller’s market is that prices will continue to rise and while you can likely sell for a profit, keep in mind you’ll have to use this capital to buy your next home.
In this case, look to Melbourne’s growth suburbs which offer great value for money. The Maroondah, Casey, Frankston and Wyndham regions scored near perfect success rates in CoreLogic’s report – the result of a combination of affordability, and access to key lifestyle amenities.