The latest Domain Profit and Loss Report provides a comprehensive overview of Australia’s property market, showcasing key trends in residential resales. The report provided by Domain offers valuable insights for buyers, sellers, and investors alike.
This report dives into questions such as: How many property owners are making profits versus losses? Which areas are leading the market? How are different property types performing in various locations? Most importantly, how are homeowners navigating the current economic climate with rising interest rates?
Record Levels of Profit-Making Sales
One of the most notable takeaways from the report is the record-breaking levels of profit-making sales across the country. Nationally, 96% of houses and 90.7% of units were resold for a profit. These are the highest percentages of profit-making sales since 2008 for houses and 2011 for units, underscoring the ongoing strength of Australia’s property market.
The performance of regional properties has been particularly impressive. For the first time since 2009, 96.1% of regional houses sold at a profit, surpassing the 96% of city houses that were resold for a profit. This shift signals a growing trend of Australians moving to regional areas, seeking more space and affordability while still capitalizing on property appreciation.
For unit sales, the gap between city and regional properties has also narrowed, with 94.6% of regional units and 89.4% of city units sold at a profit. This reversal in the typical trend of city units leading the way is a key highlight of the report, marking a shift in buyer preferences towards regional living.
Sydney's Leading Dollar Gains
While Brisbane topped the list in terms of the proportion of profit-making sales, Sydney took the lead in terms of dollar gains. On average, Sydney house owners made an impressive $655,000 in profit, the highest in the country. Sydney units also performed well, delivering average profits of $202,000 per sale.
These figures reflect the long-term stability and growth of Sydney’s property market, particularly in well-established, high-demand suburbs. As a Kensington-based real estate agency, we have seen firsthand how properties in this area can deliver strong returns, especially as the suburb remains a desirable location due to its proximity to Sydney's CBD, transport links, and lifestyle amenities.
Regional Areas Continue to Grow
A striking trend in the Domain Profit and Loss Report is the continued strength of regional property markets, particularly units. Over the past few years, regional areas have become increasingly popular, offering an affordable alternative to city living without compromising on lifestyle.
This growing demand has resulted in regional units outperforming city units in terms of profit-making sales. 94.6% of regional units sold at a profit, compared to 89.4% of city units. This trend, which began in 2021, reverses a 12-year streak where city units consistently delivered higher profits than their regional counterparts.
For investors looking to diversify, regional areas may offer opportunities for substantial growth. While Kensington remains an attractive location for investment, the report’s findings suggest that buyers should also consider the potential of expanding their portfolios into regional markets.
Generational Shifts in Wealth Growth
The Domain Profit and Loss Report also sheds light on the generational dynamics of the property market. Generation X and older Millennials, typically aged in their late 30s to late 40s, are leading the way in profit-making sales. Many from these age groups have benefited from owning property during a period of rising values, and they are now reaping the rewards as they move up the property ladder.
This generational trend is especially relevant in affluent suburbs, where house profits tend to be higher. However, the report also shows that units are providing solid returns across a broader range of income levels, allowing more Australians to build wealth through property ownership. This is important for Kensington, where both high-end homes and more affordable units are available, offering opportunities for a range of buyers.
Units Outperforming Houses in Key Suburbs
While houses have traditionally delivered higher and more stable profit margins than units, the report reveals that in some suburbs, units are now outperforming houses. In certain mid-to-outer ring suburbs, unit owners are seeing almost three times the profit compared to house owners.
For example, in Evanston, Adelaide, unit owners earned 3.1 times the percentage profit of house owners. Similar trends were noted in suburbs across Melbourne, Adelaide, Sydney, and Perth. This highlights the growing opportunity for unit investors in growth regions.
While Kensington’s housing market remains robust, these trends suggest that buyers considering unit purchases could see strong returns, especially in emerging areas around Sydney.
Long-Term Holdings and Declining Short-Term Resales
A key takeaway from the report is the decline in short-term resales, or properties sold within two years of purchase. This suggests that more homeowners are holding onto their properties for longer periods, likely due to the current economic environment of higher interest rates. With fewer distressed listings on the market, this trend indicates that homeowners are weathering the challenges of rising rates better than expected.
For Kensington, where properties are typically held for longer periods due to high demand and capital growth potential, this trend supports the idea of property as a long-term investment. Buyers and sellers in the area can take comfort in knowing that holding property in desirable locations like Kensington often leads to stable, long-term returns.
Conclusion: Key Takeaways for Kensington Investors
The Domain Profit and Loss Report provides an in-depth look at the health of Australia’s property market, offering key insights that are highly relevant to buyers, sellers, and investors in Kensington. With record-breaking levels of profit-making sales, Sydney leading the way in dollar gains, and a clear shift towards regional and unit investment, the current market presents many opportunities for those looking to invest in property.
For those in Kensington, the report reinforces what we’ve known for years: the suburb’s desirable location, coupled with Sydney’s strong property market, makes it an excellent place to buy, sell, or invest. Whether you’re looking to capitalize on high resale profits or explore new investment avenues, our team at Kensington Real Estate is here to help you navigate the market and achieve your property goals.
Source: Domain Profit and Loss Report
The latest Domain Profit and Loss Report provides a comprehensive overview of Australia’s property market, showcasing key trends in residential resales. The report provided by Domain offers valuable insights for buyers, sellers, and investors alike.
This report dives into questions such as: How many property owners are making profits versus losses? Which areas are leading the market? How are different property types performing in various locations? Most importantly, how are homeowners navigating the current economic climate with rising interest rates?
Record Levels of Profit-Making Sales
One of the most notable takeaways from the report is the record-breaking levels of profit-making sales across the country. Nationally, 96% of houses and 90.7% of units were resold for a profit. These are the highest percentages of profit-making sales since 2008 for houses and 2011 for units, underscoring the ongoing strength of Australia’s property market.
The performance of regional properties has been particularly impressive. For the first time since 2009, 96.1% of regional houses sold at a profit, surpassing the 96% of city houses that were resold for a profit. This shift signals a growing trend of Australians moving to regional areas, seeking more space and affordability while still capitalizing on property appreciation.
For unit sales, the gap between city and regional properties has also narrowed, with 94.6% of regional units and 89.4% of city units sold at a profit. This reversal in the typical trend of city units leading the way is a key highlight of the report, marking a shift in buyer preferences towards regional living.
Sydney's Leading Dollar Gains
While Brisbane topped the list in terms of the proportion of profit-making sales, Sydney took the lead in terms of dollar gains. On average, Sydney house owners made an impressive $655,000 in profit, the highest in the country. Sydney units also performed well, delivering average profits of $202,000 per sale.
These figures reflect the long-term stability and growth of Sydney’s property market, particularly in well-established, high-demand suburbs. As a Kensington-based real estate agency, we have seen firsthand how properties in this area can deliver strong returns, especially as the suburb remains a desirable location due to its proximity to Sydney's CBD, transport links, and lifestyle amenities.
Regional Areas Continue to Grow
A striking trend in the Domain Profit and Loss Report is the continued strength of regional property markets, particularly units. Over the past few years, regional areas have become increasingly popular, offering an affordable alternative to city living without compromising on lifestyle.
This growing demand has resulted in regional units outperforming city units in terms of profit-making sales. 94.6% of regional units sold at a profit, compared to 89.4% of city units. This trend, which began in 2021, reverses a 12-year streak where city units consistently delivered higher profits than their regional counterparts.
For investors looking to diversify, regional areas may offer opportunities for substantial growth. While Kensington remains an attractive location for investment, the report’s findings suggest that buyers should also consider the potential of expanding their portfolios into regional markets.
Generational Shifts in Wealth Growth
The Domain Profit and Loss Report also sheds light on the generational dynamics of the property market. Generation X and older Millennials, typically aged in their late 30s to late 40s, are leading the way in profit-making sales. Many from these age groups have benefited from owning property during a period of rising values, and they are now reaping the rewards as they move up the property ladder.
This generational trend is especially relevant in affluent suburbs, where house profits tend to be higher. However, the report also shows that units are providing solid returns across a broader range of income levels, allowing more Australians to build wealth through property ownership. This is important for Kensington, where both high-end homes and more affordable units are available, offering opportunities for a range of buyers.
Units Outperforming Houses in Key Suburbs
While houses have traditionally delivered higher and more stable profit margins than units, the report reveals that in some suburbs, units are now outperforming houses. In certain mid-to-outer ring suburbs, unit owners are seeing almost three times the profit compared to house owners.
For example, in Evanston, Adelaide, unit owners earned 3.1 times the percentage profit of house owners. Similar trends were noted in suburbs across Melbourne, Adelaide, Sydney, and Perth. This highlights the growing opportunity for unit investors in growth regions.
While Kensington’s housing market remains robust, these trends suggest that buyers considering unit purchases could see strong returns, especially in emerging areas around Sydney.
Long-Term Holdings and Declining Short-Term Resales
A key takeaway from the report is the decline in short-term resales, or properties sold within two years of purchase. This suggests that more homeowners are holding onto their properties for longer periods, likely due to the current economic environment of higher interest rates. With fewer distressed listings on the market, this trend indicates that homeowners are weathering the challenges of rising rates better than expected.
For Kensington, where properties are typically held for longer periods due to high demand and capital growth potential, this trend supports the idea of property as a long-term investment. Buyers and sellers in the area can take comfort in knowing that holding property in desirable locations like Kensington often leads to stable, long-term returns.
Conclusion: Key Takeaways for Kensington Investors
The Domain Profit and Loss Report provides an in-depth look at the health of Australia’s property market, offering key insights that are highly relevant to buyers, sellers, and investors in Kensington. With record-breaking levels of profit-making sales, Sydney leading the way in dollar gains, and a clear shift towards regional and unit investment, the current market presents many opportunities for those looking to invest in property.
For those in Kensington, the report reinforces what we’ve known for years: the suburb’s desirable location, coupled with Sydney’s strong property market, makes it an excellent place to buy, sell, or invest. Whether you’re looking to capitalize on high resale profits or explore new investment avenues, our team at Kensington Real Estate is here to help you navigate the market and achieve your property goals.
Source: Domain Profit and Loss Report