The local real estate climate has improved markedly in recent months. Lower interest rates and a steadying global economy have both contributed to a rise in consumer confidence throughout the property sector.
“We’re now seeing a lot more activity around sales compared with this time last year,” said RP Data’s Tim Lawless. The flurry of activity is encouraging for vendors and property investors alike, with a vast majority of property sales recording healthy profits.
According to figures from RP Data, 87.3 per cent of homes sold (58,677 in total) during the March quarter recorded gross profits on their previous purchase price. And it’s the higher end of the market (properties above $1.5 million) experiencing the significant growth during the past six months, increasing by 4.8 per cent in comparison to 3.2 per cent at the lower end. Mid range properties also performed strongly with a 4.6 per cent rise.
This can be attributed, at least in part, to a flow-on effect from share market growth. “We are starting to see profits taken from the share market being channelled into the more expensive housing markets,” Lawless said.
Time of ownership did play a part in these statistics. The likelihood of making a gross profit or loss is quite different based on the length of time a property has been owned. Homes purchased before the GFC in 2008 were far more likely to turn a profit this quarter.
Property Investing in Sydney
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