Geelong tops the list of regional housing markets with 99 per cent selling at a profit

An industrial city that invented the ute and has its own AFL team is a surprisingly lucrative property market.

Geelong, west of Melbourne, has regional Australia’s highest rate of homes selling for a profit with 98.6 per cent of vendors getting more than they paid.

The home of the Cats and the birthplace of the Ford ute in 1934 topped CoreLogic’s list of provincial centres soaring in popularity as buyers fled the capital cities. 

Queensland‘s Sunshine Coast came second in the regional stakes with 96.4 per cent of homes selling for a nominal gain compared with the previous sale.

The median profit for this holiday region north of Brisbane stood at $195,000 despite owners typically selling their homes after just six years and eight months.

Beachside regional areas along Australia’s east coast had a 95 per cent profitability level, including the New South Wales Illawarra, Mid-North Coast, Newcastle, Lake Macquarie and the Richmond-Tweed catchment covering Byron Bay.

‘This is likely the result of low interest rates, and the relative affordability of regional Australian coastal markets compared with coastal properties in capital cities,’ CoreLogic said.

‘Furthermore, Covid-19 may have enhanced the proposition for purchasing in, or moving to, regional Australia, given the normalisation of remote work through the pandemic, and the relatively strict lockdowns placed on higher density regions, which may have made cities less desirable over the year.’

By comparison, 94.6 per cent of Sydney houses sold at a profit compared with 96.4 per cent in Melbourne, 97.5 per cent in Canberra and 96.5 per cent in Hobart. 

A closer inspection of local government areas showed Hunters Hill, on the northern side of Sydney Harbour, had a particularly high profitability level of 97.8 per cent, with the Blue Mountains not far behind on 96.6 per cent and the Central Coast on 95.5 per cent.

‘The council area with the highest incidence of profitability was Hunters Hill. This is a higher end housing market of Sydney which had a relatively high median hold period for profit making sales at over ten years,’ CoreLogic said.

‘As may be expected with a longer hold period, the vast majority of sales were of owner occupied properties. 

‘Other council regions toward the top of the list for profitability included the Blue Mountains and Central Coast, reflecting the popularity of lifestyle markets through 2020.’

Parramatta and Strathfield in Sydney’s west had a lower profitability levels of 81 per cent by virtue of loss-making units. 

The Nillumbik area in Melbourne’s outer north had a 98.7 per cent profitability level, ahead of 97.9 per cent in the Macedon Ranges.

The Adelaide Hills had 97.1 per cent of homes sell for more than previously. 

During the September quarter of last year, 88.1 per cent of Australian homes sold for a profit compared with 87.2 per cent in the June quarter.

Profitability rates were much lower on the other side of Australia, with just 42.1 per cent of properties in the Darwin City Council area selling at a higher price.

Inner Perth had an even lower rate of just 35.4 per cent. 

Property prices in both those cities peaked in 2014 but were recovering last year, with Covid numbers much lower in Western Australia and the Northern Territory.