Perth property profits keep on climbing, CoreLogic data shows

Australia’s ever-resilient housing market has helped median gross profits move higher to $310,000 from $290,000 in the three months before.

CoreLogic’s latest pain and gain report found 94 per cent of transactions recorded a nominal gain in the December quarter, up from 93.6 per cent in the previous quarter and the decade average of 90.8 per cent.

The number of loss-making resales fell 5.1 per cent, to around 5500, reflecting strong growth in the value of properties.

The improving profitability of real estate lined up with ongoing growth in prices throughout 2023, with property values staging a sustained recovery despite higher interest rates and inflation worries, CoreLogic head of research Eliza Owen said.

Over the December quarter, national home values as measured by the firm increased 1.3 per cent.

“The broad-based increase in profitability and value across the Australian housing market helps to shore up financial stability at a time of stark increases in mortgage costs for some households,” Ms Owen said.

Adelaide was the most profitable capital city for the fifth quarter in a row, with just 1.5 per cent coming in at a loss.

Perth recorded its biggest decline in the rate of loss-making sales across all capital cities, and Brisbane had the highest proportion of profitable house resales.

All three cities were outperforming other capitals on price growth towards the end of 2023.

Transactions over the three-month period totalled 90,000.