Sale sat­is­fac­tion very high of late

Western Suburbs Weekly - - Business - By CE­LESTE GORRELL ANSTISS

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.

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