Many Australians cashed in on their properties in 2017 as nine in ten "flipped" them for profit, says the latest
Property Flipping Report from
CoreLogic.
Flipped properties included those resold within a year of purchase (89.1%) and those resold within one to two years (89.9%).
Regional NSW recorded the highest percentage of flips at a profit with 94.5% of people selling within one to two years of purchase. Sydney followed with 94.3% and Melbourne with 93.7%. All areas trended above the national average of 89.9%.
However, property flipping accounts for only a small percentage of overall property sales, says the report.
"Only 1.3% of dwellings resold over the year to June 2017 were previously held for less than a year. A further 5.7% were put back on the market within one to two years of ownership," it says.
The rate of property flipping has historically fallen, with 5.7% of property resales across the combined capitals comprising properties that were flipped within one to two years of purchase over the year to June 2017. This is significantly lower than the 11.3% recorded in 2002, says the report.
Nonetheless, flipping is now on a slight upwards trajectory.
"Across the combined capitals, the past five years has seen a 0.6% increase in properties flipped between one and two years (5.7% in 2017 vs. 5.1% in 2012) and a 0.2% increase in properties flipped within one year of purchase (1.2% in 2017 vs. 1.0% in 2012)," notes the report.
This trend is seen across regional Australia.
Related stories:
When home loans become a burden
NSW property industry loses lustre
More Australians plan to buy a home next year
