Property profit nearly doubled in two years
Selling your house has never been more profitable with most owners collecting a windfall of more than $400,000, according to the latest data from CoreLogic.
Owners achieved a median average resale profit of $420,000 in the December quarter, according to the data provider in its latest Pain & Gain report. It is almost twice the $223,000 upside that owners enjoyed back in the March 2020 quarter.
A total 99.3% of all the Kiwi properties sold in the three months to December 31 gave their owners a tidy profit – another record high. The best-performing centres were:
- Tauranga: 99.8%
- Dunedin: 99.6%
- Hamilton: 99.5%
Sellers who made the most profit had owned their homes for a median average of 7.1 years. Those who lost money had their properties for only 2.5 years.
The most reluctant sellers were in Christchurch, where the average length of ownership before a sale was 9.5 years.
Owners of apartments are also in the money, making a median average of $195,435 on their sales.
A decade ago, profitable sales for houses hovered in the 80-85% range while only 50% of apartments gave their sellers an upside.
The biggest profits were generated by homes in Wellington ($593,000) and Auckland ($585,000).
Chief property economist at CoreLogic NZ, Kelvin Davidson, said even though the market had moved past its peak, resale gains “will likely remain elevated”.
“Never before have we seen such a high and sustained peak for profit-making resales,” he said. “It doesn’t matter if you’re in a main centre or a small provincial district, an owner-occupier or an investor, or selling a house or apartment, resale gains are high across the board.”
If you’re considering selling and upgrading to a bigger - or smaller - home, it helps to have your finances in order. Don’t hesitate to reach out if I can help you understand your options.
Published Wednesday 20 April, 2022.
