Redland City has delivered its property owners the highest resale profits over the June quarter when compared with other Brisbane council regions, according to new research.
The CoreLogic Pain and Gain report showed the lowest proportion of resales at a loss were at the Redlands, followed by Lockyer Valley and Moreton Bay, while the highest proportion of resale losses occurred in Scenic Rim, Somerset and Brisbane.
“Redland City is a bustling and expanding region, appealing to a wide range of demographics, so it’s little wonder it’s performing so well,” said REIQ CEO Antonia Mercorella.
“This is evidenced by its high level of local migration, with REIQ data showing multiple Redland City suburbs appearing in the top 20 destinations for new resident arrivals in Queensland.”
The REIQ Quarterly Market Monitor revealed Redland City was also the region with the most expensive housing outside of the Brisbane LGA, reporting a median of $520,000.
“The Redlands' proportion of profitable resales was higher than the national average with 90.7 per cent of sales making a profit, compared with 89.7 per cent across Australia,” said Ms Mercorella.
Overall though, Brisbane fared lower than the national average, with 87 per cent of Brisbane properties resold at a profit.
This equated to 8.2 per cent of the total value of resale profits nationally and 5.2 per cent of the losses.
It was a different story for units though, with more than 35 per cent of resales resulting in a loss.
The large divergence between houses and units for loss making sales is likely attributable to higher supply levels across key areas of the inner city and the subsequent falling unit values.
“Brisbane has seen an extraordinary number of unit and apartment complex developments over recent years,” said Ms Mercorella.
“Although an increasing number of Queenslanders are choosing apartment living, supply has far exceeded demand, and this has driven prices downwards.”
Of the major mining regions, Townsville’s percentage of loss making re-sales was third-highest at 41.9 per cent, while across coastal areas, Cairns ranked second highest, with its percentage of loss-making sales at 24.8 per cent.
Toowoomba ranked the highest of Australia’s non-coastal regions, with 14.2 per cent of sales recording a loss
REIQ Media and Communications Manager
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