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Powell said people were choosing to stay in their homes longer, which was leading to a decline in short-term sales (where owners resell within two years).
She added that some recent buyers are no longer listing their homes because of the costs of selling a property.
In some suburbs, home sellers are making millions of dollars in profits.Credit: Steven Siewert
“When you factor in things like stamp duty, legal fees, moving costs, particularly in an extremely expensive market like Sydney, it helps explain the short-term decline in resale volumes,” Mr Powell said.
Home sellers in Davidson on Sydney’s northern beaches made the most money in the 12 months to June, with a median of $1.3 million. This was followed by Mona Vale, with a median of $1,264,850.
Melbourne’s most profitable sellers were in Middle Park, with a median profit of $1.24 million.
Brisbane’s Pullenvale was close behind, with home sellers making a median profit of $1,237,500.
While no WA suburbs made the top 20, Perth’s Rossmoyne entered the million-dollar profit club, with home sellers making an average gain of $1.01 million.
Ray White head of research Vanessa Rader said a lower supply of homes for sale, combined with demand from Australia’s growing population, had pushed up prices, resulting in bigger profits for fewer sellers.
“We’ve had a huge population growth in terms of the number of people coming here, but we haven’t seen a lot of new housing supply,” Reid said.
“When the market is very tight, we see people sitting on the sidelines and just waiting. In the rental market, we’re seeing record low vacancy rates and rent growth. So, we’re also seeing lower listings than we’ve seen in quite some time because of the scarcity of inventory.”
The long-term and substantial rise in housing prices has driven up real estate profits.Credit: Penny Stephens
Mr Read said resale profits were always high in wealthy suburbs such as Neutral Bay on Sydney’s north shore, where the average profit on a house sale was $1,095,000 in the 12 months to June.
“There’s always a shortage of supply in areas like this … if you want to buy a property in that area, there are a lot of restrictions, so that’s probably why the prices are going up,” she said.
Angie Zigomanis, head of data and insights at Quantify Strategic Insights, said the high-end property market always delivered strong returns for sellers, while the apartment market was likely to see losses.
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“The (properties) that are likely to be at a loss are either properties that have been held for a short period of time or where someone needs to sell quickly due to personal circumstances … properties at a loss are usually in certain areas where there is a high density of apartments,” he said.
Apartments in the Melbourne suburbs of Armadale and Docklands posted losses, with median losses of $96,500 and $71,500 respectively. Losses in Melbourne’s CBD were a median of $57,000, accounting for 35.6 per cent of sales.
Apartments sold in Sydney’s suburbs of Glebe, Manly and Mosman all made losses, with median losses of $93,500, $87,500 and $76,000 respectively.
Zigomanis added that long-term holdings are likely to deliver bigger gains, while downsizers and those who bought more than 30 years ago are likely to see the biggest returns.
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