AU One in three South Australian homes double in value
Property Here - Thursday, May 02, 2013
ALMOST a third of properties sold in South Australia during the December 2012 quarter achieved more than double their initial purchase price, a report shows.
RP Data's Pain and Gain report reveals that 30.2 per cent of homes sold for a profit above 100 per cent. The average gain was $261,144.
The report showed the average hold period for these homes was 13.2 years.
Real Estate Institute of South Australia Vice President Ted Piteo said renewed consumer confidence had led to stronger sales.
"The lower interest rate is certainly helping and we've seen a lot more activity than there was this time last year; we are pretty positive about the next quarter," he said.
The report showed 30.7 per cent of metropolitan homes sold for more than double their initial purchase price - reaping an average profit of $282,813.In the north of the state, more than two in five properties doubled the original purchase, with an average profit of $143,975.
Mr Piteo said he was not surprised to find country areas had performed well in the quarter. "The resources areas and the growth they have had has been impressive and a lot more executives and workers have moved into those areas to work in the mining sector," he said.
Harcourts Brock Williams director Michael Brock said the top end of the market had performed strongly in the last quarter of the year.
"Some of these people have been in their homes for a long time and consequently (the value of) their homes (has) doubled, trebled, or even more so, over that period of time and are now being sold," he said.
About 56 per cent of properties sold for a profit of less than 100 per cent.
But the figures were not all good news - 13.7 per cent of homes were sold at a loss.
The average loss was $61,422 in the same period and the average time the properties were owned was 3.9 years. Mr Brock said the number of properties that sold at a loss showed that while the market was improving, it had not yet reached the previous highs of recent years.
"There is still some fallout at the lower end of the market, where people haven't quite got through the tough economic times.
"But as a general rule across all price brackets, prices that were achieved in 2009-10 were not being achieved in 2012," he said.
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