The latest CoreLogic Pain and Gain Report shows that the vast majority of Brisbane sellers – a whopping 95.7% – pocketed a profit in the March quarter. This compared favourably to Sydney and Melbourne where loss-making sales where more than double that of Brisbane.
Interestingly units drove the increase in Brisbane’s profit-making sales, while profit-making house sales fell slightly over the same period.
“Due to coming off a relatively low base, Brisbane unit values have not seen much of a decline this cycle as rates have increased,” the report says.
“Between July 2022, and January this year, Brisbane unit values saw a peak-to-trough fall of – 2.3%, while houses saw a much sharper decline.
Brisbane unit values have climbed 21.1% in the past five years, adding to the improved chance of a profit-making sale.”
Taking a deeper dive into the data, 5.8% of Brisbane investors sold for a loss, compared to just 2.5% of owner occupiers.
While Brissie unit profit-making sales increased, the overall level of units selling at a profit is below houses. Just 1.3% of Brisbane houses sold for a loss compared to 9.2% of Brisbane units.
The key to making a profit for house resales was simply time in market. The median hold period for houses that sold at a loss was 1.1 years.
As pockets of oversupply have historically plagued Brisbane’s inner city unit markets, the data for unit holding times is not as clear cut. The median hold times for units sold at a loss was 8.8 years, whereas the hold times for units sold for a profit was 8.0 years. Broad brush averages can be very unhelpful sometimes!
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