Fewer sales, more profits
GOLD Coast homeowners are pocketing $7500 more on the sale of their homes than they were a year ago despite fewer properties changing hands.
The latest CoreLogic Pain and Gain report, which was released today, shows the median profit jumped from $120,000 in the June quarter last year to $127,500 in the same period this year.
That was despite the total value of profit dropping from more than $518 million to almost $453 million, which CoreLogic research head Tim Lawless said was a result of fewer sales.
“The reduction in the gross value of profit-making sales is due to there simply being less turnover,” he said.
“Fewer sales has a dragdown effect on the overall gross value of sales activity.”
While the data showed a slight increase in the number of properties selling at a loss, Mr Lawless said 91 per cent of sales were still fetching a profit.
“The data will move around a little bit from quarter to quarter, however the clear trend on the Gold Coast is towards an increasing portion of profitmaking sales,” he said.
“This trend has been evident since early 2013 when the portion of profit-making sales started to consistently trend higher from a recent low point where only 62 per cent of resales were at a gross profit.”
The median hold period has also increased, which Mr Law-
“SIMPLY PUT, DUE TO INCREASING PRICES, REDUCED MARKET SENTIMENT AND TIGHTENING OF LENDING POLICIES, A REDUCTION IN THE OVERALL NUMBER OF PROPERTIES (THAT HAVE) SOLD HAS OCCURRED,” SHE SAID.
RAY WHITE MERMAID BEACH AGENT TASH SANTOS
less attributed to tighter credit conditions making it hard for homeowners to upgrade or refinance.
REIQ director John Newlands, who is also the principal of Professionals Newlands Real Estate at Surfers Paradise, backed Mr Lawless’ comments.
“There’s genuinely less listings out there as well, the stock is still very tight,” he said.
“I think some people are staying put and renovating.”
Ray White Mermaid Beach agent Tash Santos said house hunters also didn’t feel the need to buy so urgently as there was less competition.
“Simply put, due to increasing prices, reduced market sentiment and tightening of lending policies, a reduction in the overall number of properties (that have) sold has occurred,” she said.
However, she said the market was expected to remain steady, especially coming into spring, which was traditionally known as the selling season. ONE of the Gold Coast’s biggest real estate heavy hitters has listed his multimillion-dollar luxury penthouse.
Management-rights industry veteran Frank Picone’s Pa- lazzo Versace apartment has hit the market with a hefty $5.75 million price tag.
The three-bedroom residence is nothing short of opulent with handcrafted marble mosaic and polished parquet floors, ornate ceilings with gilt detailing and floor-to-ceiling windows framing the Broadwater and city skyline views.
It is one of six penthouses in the five-star building and comes fully furnished with pieces from the House of Versace in Milan.
The sale price remains unknown as the 72 Versace condominiums are all on company title and transactions do not go on the public record.
The property is being marketed by Kollosche Prestige Agents director Michael Ko-