Property has been delivering average earnings of $110,000 a year in some regions of Sydney following an unexpected boom in house prices.
Property has been delivering average earnings of $110,000 a year in some regions of Sydney following an unexpected boom in house prices.

Where homes earn owners $110k a year

Property has delivered up to $110,000 a year in wealth for the average homeowner in parts of Sydney.

It comes as housing experts revealed boom conditions have returned to the Harbour City housing market and prices are rising at levels not seen in nearly two decades.

And the return to strong growth has come on the back of previous booms in the housing market, including in the years from 2014 to 2017.

A report from property group CoreLogic released today showed just how quickly the current boom and previous market rises have lined the pockets of sellers.

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The Pain and Gain report examined sales over the December quarter last year and revealed close to 96 per cent of the homes that traded changed hands for more than the sellers paid for them.

Sellers in Sydney's north made particularly high profits, with vendors in the council areas of Ku-ring-gai and Mosman netting more than $900,000 from their sales.

Home sellers made even bigger profits in the Hunters Hill council area, where the median profit on resales was $1.025 million.

Sellers in the region had owned their homes an average of 9.3 years before transacting them again, which they made about $110,200 for each year they owned their properties.

Property ownership was also lucrative across the northern beaches. Total profits from resales in the region were $1.15 billion across the three month period - higher than anywhere else in the country.

A subdivided tennis court in Hunters Hill sold for $3.55m at auction two years – and prices have surged since then.
A subdivided tennis court in Hunters Hill sold for $3.55m at auction two years – and prices have surged since then.

The median profit for sellers was $655,000 across about nine years of homeownership.

Core Logic head of research Eliza Owen said it was clear that more sellers were making a profit on their properties - not just in Sydney but across the country.

"As property values rose across each state and Territory through the December quarter, buoyed by a cash rate reduction through November, the value of profits also increased substantially," Ms Owen said.

Total national gains from resales in the December quarter rose to $31.9 billion, up from $24.8 billion in the previous quarter.

Combined losses from resales also shrank from $1.2 billion to $1 billion from the September to December quarter.

Recent auctions have attracted massive crowds. Picture: Dylan Coker
Recent auctions have attracted massive crowds. Picture: Dylan Coker

CoreLogic reported there were only about 180 loss making sales across Sydney's combined council regions in the three months to December.

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The majority were in areas with a high supply of newly built apartments, including Parramatta where there were 110 incidences of sellers accepting a price lower than what they paid.

The highest portion of loss making sales was in Botany Bay (17.6 per cent), Strathfield (17.4 per cent), and Parramatta (17.3 per cent).

 

MOST PROFITABLE REGIONS FOR SELLERS

(By median resale profit)

Hunters Hill $1.025m

Mosman $912,000

Ku-ring-gai $902,000

Woollahra $824,000

Waverley $756,000

The Hills $664,500

Willoughby $664,000

Northern beaches $655,000

Hornsby $647,000

Inner west $560,000

Source: CoreLogic, December qtr

Originally published as Where homes earn owners $110k a year


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