Sale satisfaction very high of late
THERE have been a lot of happy home sellers in the western suburbs lately.
Nearly every home that changed hands in the September quarter sold for more than what the owners bought it for, according to the latest Core Logic RP Data Pains and Gains Report.
The report, released January, indicated a strong correlation between profitability and time held. Western suburbs homes that did not sell for more than the previous rate were held for an average of five years, while the profit-making property was held for an average of 9.7 years.
The strongest performer was Peppermint Grove, where all homes sold for more than the previous purchase price. The median profit was $472,500 and the average hold was 10.5 years.
City of Cambridge also fared well – 97.6 per cent of homes sold for more than what the sellers paid, generating a median profit of $175,000, after an average of 8.9 years. This was well above the median across Perth, where 94 per cent of homes sold generated a profit.
Similarly, 94.7 per cent of sales in Mosman Park achieved a profit – a median of $152,500 after an average of 8.6 years.
Just one home in Cottesloe sold at a loss. It had been held for seven years and dropped in price by $310,000. The remaining 90 per cent sold at a median profit of $186,250 and were held an average of 10.2 years.
Subiaco was the biggest anomaly, as an average of 14 months was all that separated profitable and loss-making sales. In Subiaco, profitable sales (92.6 per cent) were held an average of 10.4 years and increased in value by nearly $300,000.
The remainder sold with a median loss of $60,000 and were held for an average of 9.2 years.
It was also a mixed bag for Claremont, where 11.8 per cent of homes sold at a loss – the median loss being $315,000. The average hold period for loss-making sales was 6.5 years. Profitable homes (88.2 per cent of those sold) had been held an average of 8.8 years and generated $318,000 profit.
Six per cent of Nedlands’ sales were also at a loss, the median being a relatively low $40,000 and the hold period 3.1 years. The remaining homes netted a median profit of $540,000 – the largest out of the western suburbs – after being held an average 10.7 years.
Acton Cottesloe director Bev Heymans said the report reflected what she had seen throughout the western suburbs market.