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Australia’s most profitable regions revealed

By Bianca Dabu 25 March 2021 | 1 minute read

Profit-making dwelling sales have surged across the country, but the sellers in Hobart are among those that profited most from the sale of their homes over the last quarter of 2020.

Australia’s most profitable regions revealed

According to CoreLogic’s latest Pain and Gain report, the rate of profit-making sales in Australia rose to 89.9 per cent, above the 87.9 per cent recorded pre-COVID-19.

In contrast, only 10.1 per cent of properties were sold at a nominal loss – the lowest level since the July 2018 quarter.

And while profit-making dwelling sales were high across the country, Hobart emerged as the clear winner with the highest incidence of profit-making sales, 97.2 per cent, up from a strong 96.7 per cent in the September quarter.

According to CoreLogic’s head of research, Eliza Owen, profit-making sales are rising as a result of the strong growth in property values across the states and territories.

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Find out where sellers are making the most money:

Hobart

Hobart had the highest incidence of profit-making sales, at 97.2 per cent, on the back of a renewed rise in values driven by the cash rate reduction in November.

All LGAs in Hobart saw levels of profitability over 90 per cent, with the top three including:

Council region (% of all sales) – Median profit

BrightonBrighton, SA Brighton, VIC Brighton, TAS Brighton, QLD (98.3 per cent) – $168,500
Glenorchy (97.9 per cent) – $198,300
Hobart (96.7 per cent) – $300,000

The highest median profit was observed in Hobart, followed by Kingborough and Clarence ($245,000), Sorrell ($243,500) and Glenorchy. Sorrel held the record for shortest median hold period at 5.9 years, the shortest recorded across all capital city council regions. On the other hand, Derwent Valley saw the longest at 11.1 years.

Canberra

The ACT saw 92.9 per cent of observed sales making a nominal gain in the December quarter, up from the previous quarter’s 90.7 per cent.

Both the house and unit segment had seen an increase in profit-making sales over the quarter, and house sales had the highest incidence of nominal gain of any capital city house market.

Loss-making unit sales totalled over 132 in the December quarter, and were most common across the suburb of Belconnen, which saw 19 loss-making unit sales.

Council region (% of all sales) – Median profit

Unincorporated ACT (92.9 per cent) – $215,000

The median hold period across the ACT was recorded at 9.1 years, while the total value of profit over the December quarter sits at $573,377,856.

Sydney

Greater Sydney saw profitability increase 30 basis points in the December 2020 quarter, up from September quarter’s 92.1 per cent. This was largely driven by the house market, where profitability increased to 95.6 per cent.

Across the council regions of Sydney, the highest incidence of profitability were recorded in:

Council region (% of all sales) – Median profit

Hunters Hill (98.1 per cent) – $1,025,000
Northern Beaches (97.5 per cent) – $655,000
Willoughby (97.4 per cent) – $664,000

Hunters Hill also holds the title for highest median profit, followers by Mosman ($912,500), Ku-Ring-Gai ($902,014), Woollahra ($824,250), WaverleyWaverley, NSW Waverley, TAS ($756,500), The Hills Shire ($664,900) and Willoughby.

Meanwhile, the shortest hold period in Greater Sydney was observed in Wollondilly at 7.1 years, followed by CampbelltownCampbelltown, NSW Campbelltown, SA with 7.8 years, and Lane Cove and Liverpool with eight years each. The longest median hold period was 12.8 years, which was seen in Hornsby.

Melbourne

Like Sydney, Greater Melbourne also saw the rate of profit-making sales rise, from 93 per cent in the September quarter to 94.3 per cent in the December quarter. This is higher than the pre-COVID levels of 93.2 per cent recorded in the February quarter and reflects a 1.5 per cent increase in dwelling values.

The highest rates of profitability were mostly seen across the outer LGA regions, including:

Council region (% of all sales) – Median profit

Nillumbik (99.1 per cent) – $521,800
Melton (99.1 per cent) – $286,950
Casey (98.7 per cent) – $338,000
Macedon Ranges (98.7 per cent) – $437,500

The highest median profits were recorded in Boroondara ($709,750), Bayside ($705,000), White Horse ($548,300), Manningham ($542,500) and Monash ($498,400).

WyndhamWyndham, WA Wyndham, NSW and Melton hold the record for the shortest median hold period at seven years each, followed by Moreland and Cardinia with 7.4 years. On the other hand, Boroondara saw the longest median hold period at 11.4 years.

Brisbane

Greater Brisbane recorded 89.4 per cent of resales seeing nominal gain in the December quarter, up from the previous quarter’s 88.9 per cent. This reflects a 1.4 per cent rise in values across the area.

Among the regions that recorded the highest rate of profitability in Greater Brisbane were:

Council region (% of all sales) – Median profit

Somerset (96.7 per cent) – $90,850
Redland (94.1 per cent) – $160,000
Scenic Rim (93 per cent) – $167,000

Despite having the lowest incidence of profitability of all Brisbane council regions at 87.2 per cent, Brisbane had the highest median profit at $201,000, followed by Scenic Rim, Redland, Moreton Bay ($152,000) and Logan ($134,500).

Greater Brisbane’s shortest median hold period was 7.4 years recorded in Scenic Rim, followed by Somerset with 7.8 years, Moreton Bay with 8.1 years and Ipswich with 8.2 years. The longest median period was recorded in Brisbane at 10.1 years.

Adelaide

Adelaide’s portion of profit-making resales saw a 170 basis point increase to 93.2 per cent, reflecting the areas 1.2 per cent rise in dwelling values over the December quarter. Currently, Adelaide’s dwelling values are at a record high, the report noted.

Across the council regions of Adelaide, the highest incidence of profitability were recorded in:

Council region (% of all sales) – Median profit

Tea Tree Gully (98 per cent) – $115,000
Mount BarkerMount Barker, SA Mount Barker, WA (96.7 per cent) – $234,500
Marion (96.3 per cent) – $123,000

The highest median profits were recorded in Walkerville ($324,750), ProspectProspect, NSW Prospect, TAS Prospect, SA ($291,500), BurnsideBurnside, SA Burnside, VIC Burnside, QLD ($282,500), Mount Barker ($234,500) and MitchamMitcham, VIC Mitcham, SA ($229,750).

Mount Barker saw the shortest median hold period at 7.6 years, followed by Charles Sturt and Holdfast Bay with 8.7 years each. The longest holding period across the regions was 12.6 years and observed in Mallala.

PerthPerth, TAS Perth, WA

The rate of profit making sales across Perth rose to 72.2 per cent in the December quarter from September quarter’s 68.2 per cent, with both houses and units seeing a strong lift in profitability at 76.8 per cent and 49.1 per cent, respectively.

The highest rates of profitability were recorded in the following LGAs:

Council region (% of all sales) – Median profit

Cottesloe (86.5 per cent) – $912,500
Bassendean (84.1 per cent) – $227,250
Mundaring (84.1 per cent) – $280,000

Cottesloe saw the second highest median profit in Greater Perth, following Peppermint Grove with $1,997,500. Other LGAs that saw the high median profits were Cambridge ($480,000), East Fremantle ($469,500), Nedlands ($400,000) and ClaremontClaremont, TAS Claremont, WA ($325,500).

Cottlesloe also saw the shortest median hold period at 7.1 years, followed by Fremantle with 8.3 years and Claremont with 8.4 years. The longest median hold period was observed in Peppermint Grove at 22.4 years, the longest recorded across all capital city council regions.

Darwin

In the December 2020 quarter, Darwin saw its weakest rate of profit making sales since April 2015 at 51.4 per cent. However, CoreLogic noted that more recent buyers will benefit from the recovery of dwelling values in Darwin, which has increased13.8 per cent since bottoming out in February 2020.

Across the council regions of Darwin, the highest incidence of profitability were recorded in:

Council region (% of all sales) – Median profit

Litchfield (60 per cent) – $200,000
Palmerston (58.8 per cent) – $209,500
Darwin (46.6 per cent) – $100,000

The highest median profit was recorded in Palmerson, followed by Litchfield and Darwin. Palmerston also holds the record for shortest median hold period at 8.7 years, followed by Darwin with 13 years and Litchfield with 13.8 years.

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Australia’s most profitable regions revealed
Australia’s most profitable regions revealed
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