CoreLogic’s latest Pain & Gain report reveals just how much profit Australians have made on the sale of their properties. The results are astounding. 

There can’t be too many markets where over 94% of participants make a capital gain on the sale of their asset.

But that’s exactly what happened in the property market in the first quarter of 2024.

CoreLogic’s latest Pain & Gain report analysed around 85,000 property resales in the first quarter of the year and found 94.3% of transactions recorded a nominal gain[1].

It’s the highest rate of profitability in 14 years, and Angus Raine, Executive Chairman of Raine & Horne says it’s a good reason for property owners to consider if now is the time to list their home for sale.

Median sale profits hit $265,000… 

According to CoreLogic, the median gross profit on sale in the March quarter 2024 was $265,000.

Angus says, “That’s an exceptional result, especially when we look at it through the lens of an owner occupier, who can pay zero capital gains tax on the sale of a primary residence[2].

“Even for investors, a decent profit on sale can attract a 50% capital gains tax discount when a rental property is held for at least 12 months[3].” 

…rising to $780,000 over 30 years

It is interesting to note that CoreLogic found the median gross profit on sale rose in line with holding periods. 

As Chart 1 shows,  sellers who had owned a property for, say, 8-10 years, made a median gross profit on sale of $275,000.  

At the far end of the scale, those who held a property for three decades or more made a gross profit on sale of $780,000. 
 

Is it time to consider selling?

Of course, not everyone wants to hang onto a property for over 30 years. And, according to REA Group’s PropTrack, home prices are still rising despite higher interest rates and an increase in listings for sale[4].  

Nonetheless, PropTrack notes that property prices are “now at their peak in half the regions in our country”. 

Indeed, PropTrack sets out a wide array of locations from Sydney to parts of regional Queensland and Perth, where property values are “at their peak”. 

“This can flag opportunities for homeowners and investors to cash in on their gains, and use the profits to take the next step on the property ladder,” Angus says. 

Now’s the time to invest in expert advice 

With a question mark hanging over the direction of interest rates, and the supply of new homes remaining tight, it is important for buyers and sellers alike to access expert advice.

The fact is, no two property markets behave in identical ways. 

What matters is that you speak to your Raine & Horne property expert to get a feel for how the market is performing in your patch.

Angus concludes, “It could be that now is the ideal time to sell, and cash in on significant gains. And with profits on sale shaping up in the hundreds of thousands of dollars, that’s one boat that nobody wants to miss.”

 To find out more about the housing and apartment markets in your suburb, town or region, talk to your local Raine & Horne agent. 

[1] https://www.corelogic.com.au/news-research/news/2024/profitability-reigns-as-property-gains-hit-14-year-high

[2] https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence---home/eligibility-for-main-residence-exemption
[3] https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt
[4] https://www.proptrack.com.au/insights-hub/home-prices-hit-new-peaks-across-half-of-the-country/