Apartment re-sales are holding steady, with 87 percent realising a gross profit in the second quarter of this year, according to figures from CoreLogic's latest Pain and Gain Report.
CoreLogic analysed all properties that were sold during the three months to June 30, comparing the most recent sale price to the previous sale price to determine whether the property sold at a gross profit or gross loss.
The gross profits for apartments are a good result, and consistent with the large rises in values seen over the past five years.
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However, houses continue to outperform, with a gross profit result of 96.5 percent. The gap between apartments and houses remains larger than it has been for about three years, indicating that any market fatigue is more of a factor in the apartment segment, perhaps where owners’ approach is more financially-driven, so are prepared to exit as soon as the sums don’t add up.
The total gains on house resales in Q2 2018 were $3.2 billion, with a median gross profit of $180,000.
For apartments, resellers banked total gains of $74.7 million, with a median of a touch less than $137,000. Median losses on apartments ($26,000) in Q2 were slightly higher than that for houses ($20,000), while total losses for the two segments were $2.1 million and $18.4 million respectively.
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