Sydney suburbs where home sellers are making more than half a million in profit

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The suburbs where homeowners are making more than half a MILLION dollars profit as Australia quickly rebounds from coronavirus slump

  • Sydney suburbs such as Willoughby have profit margins of more than $500K
  • Housing prices have dropped 2.9 per cent since the beginning of the pandemic  
  • Area with large blocks of land near the beach have become popular choices

Homeowners across Sydney are raking in huge profits on their houses as Australia’s economy begins to shrug off the coronavirus pandemic.

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Eight local council areas are seeing median profits of more than $500,000 as the country emerges from a short-lived recession.

Areas like Willoughby, the Northern Beaches and Ku-ring-gai are seeing profit margins between $585,000 and $652,000, according to a CoreLogic report.

Housing prices have dropped 2.9 per cent since the beginning of the pandemic but are still eight per cent higher than this time in 2019. 

Homes in areas such as Ku-ring-gai Council area (pictured: house in Turramurra for sale at $5.89M) have a profit margin of $616,000

Housing prices have dropped 2.9 per cent since the beginning of the pandemic but are still eight per cent higher than this time in 2019. Pictured: Home in The Hills District

Housing prices have dropped 2.9 per cent since the beginning of the pandemic but are still eight per cent higher than this time in 2019. Pictured: Home in The Hills District

Northern Beaches properties, such as this Mona Vale home, have a median profit margin of $585,000

Northern Beaches properties, such as this Mona Vale home, have a median profit margin of $585,000

Low supply of housing at a time of low interest rates also ramped up competition for homes, driving up the price. 

Areas with the biggest profits typically were on a larger block or near a beach – and many families no longer saw proximity to the CBD as a deciding factor.

This made areas such as the Northern Beaches more alluring.    

Owners also typically owned the home for seven to eight years before deciding to move on from the property. 

Economist Andrew Wilson, from My Housing Market, said there is a shift from a buyer’s market to a seller’s market. 

However some areas have been falling behind. 

Areas with the biggest profits typically were on a larger block or near a beach - and many families no longer saw proximity to the CBD as a deciding factor. Pictured: Willoughby home currently on the market

Areas with the biggest profits typically were on a larger block or near a beach – and many families no longer saw proximity to the CBD as a deciding factor. Pictured: Willoughby home currently on the market

High-rise buildings in areas such as Parramatta and Ryde saw 16 per cent of sellers lose money.

The average lost was $40,000. 

‘If rents continue to fall we may see more investors selling their units,’ Mr Wilson said.     

COUNCIL AREAS WITH HIGH MEDIAN PROFIT MARGINS

Willoughby – $652,000

Ku-ring-gai – $616,000

The Hills Shire – $598,000

Northern Beaches – $585,000

Hornsby – $528,000

Randwick – $510,000

Inner west – $509,000

Mosman – $501,000 

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