Fresh data in CoreLogic’s latestPain and Gain Report,released Wednesday,marked the second consecutive quarter where more than 90 per cent of Perth resales had made a profit.
Wanneroo was the biggest winner for profitable sales with 98.3 per cent of sales making a median profit of $183,500 in the December quarter.Ross Swanborough
CoreLogic head of research Eliza Owen said Perth was at its most profitable level since July 2015,based on the resale analysis of around 90,000 homes and units across the nation.
“Between December and the end of February,Perth dwelling values rose 3.5 per cent,including a 3.7 per cent uplift in the unit segment,” she said.
“Given the high correlation between growth in the home value index and the rate of profit-making sales,a higher rate of profit making house and unit resales is expected in the March quarter.”
In Perth,93.7 per cent (374 out of 399) of markets recorded a capital gain of 10 per cent or more over the year,with units in the coastal suburb of Waikiki recording an impressive 42 per cent annual rise.
CoreLogic economist Kaytlin Ezzy said despite three rate hikes,worsening affordability and the rising cost of living,the increasingly entrenched undersupply in housing stock and above-average demand through strong net migration had helped push values higher.
“Houses in Perth’s inner-city suburb of Daglish was the only market to record a decline in values across the city,falling 0.3 per cent over the three months to February,” she said.
“At the other end of the scale,one house market (Kwinana Town Centre) and four unit markets (Dudley Park,Waikiki,Baldivis,and Halls Head in Perth’s Mandurah and South West regions) have recorded phenomenal quarterly growth of more than 10 per cent.”
The report crowned the council area of Wanneroo as the biggest winner for profitable sales,with 98.3 per cent of sales making a median profit of $183,500 in the December quarter.
About 97 per cent of Serpentine-Jarrahdale and Murray homeowners who sold in the December quarter turned a median profit of $200,000.
It was closely followed by Mundaring sellers,who recorded a median profit of $275,500 after a 12-year return on investment.
The biggest percentage of loss-making sales were in the City of Perth (47.6 per cent),Vincent (23.1 per cent),Belmont (22.9 per cent) and Subiaco (20.3 per cent).
Limnios Property Group managing director James Limnios said the housing boom had boosted the collective wealth of Perth’s 880,000 private property owners by more than $100 billion during the past year and by $200 billion since the onset of the pandemic.
Limnios said the latest CoreLogic figures showed the median dwelling price in Perth had surged by 18.3 per cent – or $125,000 – over the past year to $687,000,and had increased by $237,678 since the onset of COVID.
He said a turning point for the Perth market was the injection of federal and state government funding in new housing in response to the pandemic,which helped kickstart the local property market after many years in the doldrums.
“This was followed by a massive influx of Western Australians returning to our state as well as major surge in interstate and international migration,” he said.
Limnios Property Group has predicted another 10 per cent growth in Perth dwelling prices over the coming year which would see the collective wealth of Perth property owners surge by a further $60 billion.
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