A new report from PropTrack has revealed the top 10 suburbs nationwide where home sellers posted profits of $1 million or more from March through July.
Sydney was home to the most lucrative property sales, with NSW suburbs dominating the list with nine entries.
was on the elite list, with properties in the northern suburbs of the beaches selling for a median profit of $1,540,000 in the four months to July. Of all the properties in the suburbs sold over the period, the average holding period was 6.1 years.
Double Bay closely followed Seaforth, as property sellers in the port suburbs pocketed an average profit of $1,495,000 over the same period. The median holding period for Double Bay properties prior to sale was 6.2 years old.
The only suburb to enter the list that was located outside the NSW border was Melbourne Peninsula, which posted a median profit of $1,407,500 and had an average holding period of 6.6 years.
Other Sydney suburbs to make the list were Hunters Hill ($1,390,000), West Pennant Hills ($1,329,900), Pymble ($1,260,000), Woollahra ($1,232,500), North Bondi (1 $224,000), Avalon Beach ($1,130,000) and Belrose ($1,100,000). The average detention time for suburban Sydney ranged from the shortest of 5.4 years to the longest of 8.1 years.
The report comes as domestic house prices have fallen alongside the Reserve Bank’s monetary policy tightening, which has been launched in May.
In a bid to rein in soaring inflation, the central bank made four consecutive rate hikes from May to August, which saw the country’s official exchange rate drop from a record low of 0.35% at currently stands at 1.85%.
Although market conditions were observed to soften prior to rate hikes, most experts agree that the continued fluctuation in the exchange rate has played a major role in the growth of property values across the country.
CoreLogic’s National Value Index entered negative territory in May with a decline of 0.3% on a monthly basis and recorded steeper declines in subsequent months. In July, the the combined capital index fell by 1.3%.
But despite cooling market conditions, PropTrack pointed out that some landlords made the strategic choice to sell properties when prices were still near their peak, resulting in huge profits.