Property Flipping ReportPrepared by CoreLogic December 2017
2 | CoreLogic Property Flipping Report December 2017
© Copyright 2017 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved.
About CoreLogicAbout CoreLogic CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell.
With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 500 million decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information.
With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government.
CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand.
For more information call 1300 734 318 or visit www.corelogic.com.au
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Introduction‘Flipping’ is a term used to describe short term property trading; a buyer purchases a home with the intent of reselling the property in a short time frame (generally one or two years) for a profit. ‘Flippers’ aim to make their profit either by buying undervalued property and reselling at a higher price, buying property at market value and riding the capital growth curve, or by adding value to the property in some way (renovation, subdivision, development approval etc).
While there are many examples of profitable flipping, it’s important anyone considering this strategy understands the costs involved.
Transacting real estate is an expensive exercise. Successfully flipping a home involves more than simply selling the property for more than it was purchased for. In order to make a profit, Flippers will need to recoup their transactional costs such as stamp duty and conveyancing, as their selling costs such as marketing and real estate agent commission. There is likely to also be interest payments on the debt as well as capital gains tax on the profit.
When housing markets are running hot, it makes sense that flipping would become more popular while when a market is weaker, owners are likely to have to hold onto properties for longer in order to return a profit.
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NationalOver the 12 months to June 2017, 3,861 dwellings were sold after having been held for less than a year nationally with a further 16,749 resold after being owned for between one and two years. These figures represented 1.3% and 5.7% of all resold property sales over the year. Flipping remains a small proportion of the overall housing market however, flips between one and two years have been trending higher over recent times. In its heyday in the early 2000s, 4.4% of all properties were flipped in less than 12 months and 16% were flipped between 12 and 24 months from previous purchase.
What is surprising is that the introduction of the capital gains tax discount for investors that held properties for more than 12 months in 1999, made little difference to flipping behaviour. In fact, the incidence of flipping didn’t rise substantially until the national housing market boomed between 2001 and 2004.
Focusing solely on those properties which are flipped, the data shows that most of these properties are selling for a gross profit. Over the 12 months to June 2017, 10.9% of flips held for less than 12 months were at a loss and 10.1% of flips held for between 12 and 24 months resold for a loss.
Although the proportion of flips at a loss has declined from recent highs in 2009 and again in 2012, there has been a clear increase in loss-making flips recently. The rising number of loss making flips highlights there is some financial risk in flipping, keeping in mind that the proportion of loss making flips on a net basis is likely to be substantially higher once expenses are taken into account.
Across the major regions of the country, flipping was more prevalent in Sydney, Melbourne and Regional QLD. The propensity to flip in Sydney and Melbourne is likely due to the strong run-up in values over recent years whereas regional QLD is probably seeing greater propensity to flip as people struggle to meet mortgage repayments as unemployment has risen and dwelling values have fallen.
Vendors in Perth, Hobart, Darwin, regional QLD, regional SA, regional WA, regional TAS and regional NT were the most likely to flip their properties for a loss. In most of these regions value growth has been sluggish for a number of years which makes flipping for a profit much more difficult.
Percentage of homes flipped < 12 mths
2017
4.4% 16.0%1.3% 5.7%2000s
Percentage of homes flipped between 12 - 24 mths
20172000s
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Regions
Percentage of sales that were flips Percentage of flips at a profit
< 1 Year 1 - 2 Years < 1 Year 1 - 2 Years
Sydney 1.5% 6.8% 92.8% 94.3%
Regional NSW 1.5% 6.0% 92.6% 94.5%
Melbourne 1.3% 6.4% 92.6% 93.7%
Regional VIC 1.1% 4.7% 88.6% 89.4%
Brisbane 1.1% 5.4% 88.7% 90.0%
Regional QLD 1.6% 6.6% 85.6% 88.3%
Adelaide 1.1% 4.2% 89.7% 88.8%
Regional SA 1.1% 3.9% 81.8% 79.3%
Perth 0.8% 3.2% 69.9% 52.3%
Regional WA 0.8% 3.1% 80.5% 77.1%
Hobart 1.3% 5.3% 82.6% 93.2%
Regional TAS 1.2% 5.3% 85.2% 79.2%
Darwin 1.9% 4.1% 64.7% 29.7%
Regional NT 0.6% 4.7% 50.0% 60.0%
Canberra 1.0% 4.0% 88.1% 93.2%
National 1.3% 5.7% 89.1% 89.9%
Combined Capitals 1.2% 5.7% 89.7% 90.0%
Combined Regional 1.4% 5.8% 89.1% 89.9%
Flipping Characteristics by State, 12 months to June 2017
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Capital Cities vs RegionsAcross the combined capital city housing markets over the 12 months to June 2017, 1.4% of all resales were flipped in less than 12 months while 5.7% of all sales were of properties held for between one and two years. The instances of flipping properties in less than 12 months has been fairly steady over recent years while the instances of reselling after between one and two years is increasing. The combined regional housing markets recorded 1.4% of properties being resold in less than 12 months while 5.8% were resold after between one and two years. Much like what is occurring in the capital cities, the proportion of flips between one and two years has been increasing while flipping after less than 12 months has been relatively unchanged.
Over the past year, 9.7% of combined capital city flips in less than 12 months and 10.4% of combined regional market flips held for less than 12 months resold at a loss. 9.9% of capital city dwellings resold after between one and two years resold at a loss compared to 10.0% of properties across the regional markets. The data highlights that even though areas of the country have seen values fall or moderate growth, most people who buy and resell properties after just a short period of ownership have sold for in excess of the previous purchase price.
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2.2%2007
2.7%1997
Percentage of annual resales that were flips
Combined Capital Cities Combined Regional Markets
1.2%2017
9.2%2007
9.2%1997
5.7%2017
2.9%2007
3.1%1997
1.4%2017
11.9%200710.6%
1997
5.8%2017
10.6%2007
22.0%1997
Percentage of total flips at a loss
Combined Capital Cities Combined Regional Markets
10.3%2017
11.8%2007
27.3%1997
10.0%2017
7.4%2007
24.1%1997
11.7%2017
8.3%2007
29.1%1997
10.4%2017
< 1 year 1 - 2 years
3.4%2002
1.0%2012
11.3%2002
5.1%2012
3.2%2002
1.2%2012
10.7%2002
5.3%2012
6.0%2002
27.8%2012
8.3%2002
27.3%2012
7.0%2002
29.4%2012
4.6%2002
32.1%2012
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New South WalesThe New South Wales housing market has been the nation’s strongest over recent years fuelled by very strong value growth conditions in Sydney. Although values have been rising there has not been a substantial increase in flipping behaviour, certainly not like the rise which was witnessed during the early 2000s housing boom. When vendors do flip properties they are in most instances flipping these properties for a profit which is reflective of the strong value growth which has been occurring.
1.1%2007
2.6%1997
Percentage of annual resales that were flips
Sydney Regional NSW
1.5%2017
5.1%2007
8.7%1997
6.8%2017
1.6%2007
3.5%1997
1.5%2017
7.1%2007
11.2%1997
6.0%2017
27.8%2007
15.5%1997
Percentage of total flips at a loss
Sydney Regional NSW
7.2%2017
37.6%2007
18.4%1997
5.7%2017
13.4%2007
19.8%1997
7.4%2017
18.3%2007
26.7%1997
5.5%2017
< 1 year 1 - 2 years
2.8%2002
1.1%2012
10.9%2002
5.1%2012
2.6%2002
1.0%2012
10.6%2002
4.7%2012
5.3%2002
17.0%2012
4.5%2002
17.2%2012
6.7%2002
23.4%2012
5.5%2002
20.6%2012
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Percentage of Annual Resales that were Flips,
NSW SA4 Regions
Percentage of Total Annual Flips at a loss,
NSW SA4 Regions
SA4 Regions
2016 2017 2016 2017
< 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs
Capital Region 1.4% 4.4% 1.6% 5.5% 11.3% 8.5% 9.2% 5.1%
Central Coast 1.5% 7.4% 1.5% 7.5% 4.2% 3.6% 3.4% 2.0%
Central West 0.9% 4.9% 1.2% 5.3% 8.3% 9.0% 5.9% 8.4%
Coffs Harbour - Grafton 1.2% 4.4% 1.5% 5.9% 7.1% 5.0% 8.8% 6.8%
Far West & Orana 0.7% 4.1% 1.1% 4.1% 0.0% 11.6% 25.0% 4.3%
Hunter Valley ex Newcastle 1.1% 4.5% 1.0% 5.3% 18.6% 13.5% 14.0% 3.6%
Illawarra 1.7% 7.0% 2.4% 8.7% 7.4% 2.5% 2.4% 1.9%
Mid North Coast 1.3% 6.1% 1.4% 6.2% 7.5% 4.1% 1.8% 6.5%
Murray 1.4% 5.6% 1.6% 5.1% 22.7% 5.6% 11.5% 12.3%
New England & North West 1.0% 4.4% 0.7% 4.5% 10.5% 8.2% 20.0% 19.6%
Newcastle & Lake Macquarie 1.5% 5.9% 1.4% 6.3% 2.4% 5.2% 6.8% 3.2%
Richmond - Tweed 1.2% 5.4% 1.7% 6.0% 7.5% 6.4% 8.2% 6.3%
Riverina 0.7% 3.8% 1.1% 4.3% 7.1% 8.3% 14.3% 12.3%
Southern Highlands & Shoalhaven 1.4% 6.9% 1.7% 8.0% 0.0% 2.0% 0.0% 0.9%
Sydney - Baulkham Hills & Hawkesbury 1.4% 5.2% 1.0% 6.1% 2.9% 4.6% 4.2% 6.9%
Sydney - Blacktown 1.2% 6.7% 1.1% 6.2% 13.3% 1.6% 7.7% 4.2%
Sydney - City & Inner South 1.7% 6.6% 1.1% 5.5% 2.5% 4.2% 7.5% 7.0%
Sydney - Eastern Suburbs 2.1% 6.4% 2.0% 6.2% 2.9% 5.1% 1.6% 3.8%
Sydney - Inner South West 2.1% 6.9% 1.5% 7.6% 12.7% 5.1% 14.5% 7.9%
Sydney - Inner West 1.5% 6.9% 1.3% 6.2% 1.8% 2.3% 14.0% 4.4%
Sydney - North Sydney & Hornsby 1.3% 6.5% 1.3% 6.6% 5.3% 4.2% 7.0% 6.1%
Sydney - Northern Beaches 1.2% 6.0% 1.3% 6.4% 2.5% 0.5% 5.1% 2.5%
Sydney - Outer South West 2.0% 8.8% 1.5% 8.3% 6.8% 3.4% 4.2% 7.3%
Sydney - Outer West & Blue Mountains 1.4% 6.6% 1.8% 7.6% 4.7% 1.3% 11.4% 4.6%
Sydney - Parramatta 1.4% 7.9% 1.7% 7.2% 8.2% 4.5% 8.5% 8.1%
Sydney - Ryde 1.4% 6.6% 1.5% 6.3% 18.5% 3.2% 3.4% 9.2%
Sydney - South West 2.2% 8.2% 2.2% 7.8% 7.1% 4.2% 7.2% 9.5%
Sydney - Sutherland 1.2% 5.2% 1.1% 4.9% 5.6% 3.9% 3.1% 2.9%
New South Wales
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VictoriaVictoria’s housing market has seen quite strong growth in dwelling values over recent years however, until recently the growth has largely been limited to Greater Melbourne. Recently in Melbourne there has been a lift in flipping behaviour across properties held for one to two years. Despite the recent increase, flipping behaviour remains substantially lower than during the early 2000s. In Melbourne, the proportion of flips that have occurred resale losses has reduced over recent years while in regional Vic more than 10% of flips are currently reselling at a price below the purchase price.
1.8%2007
2.4%1997
Percentage of annual resales that were flips
Melbourne Regional VIC
1.3%2017
7.4%20077.3%
19976.4%2017
1.9%2007
1.9%1997
1.1%2017
8.3%2007
7.7%1997
4.7%2017
15.9%2007
22.8%1997
Percentage of total flips at a loss
Melbourne Regional VIC
7.4%2017
15.9%2007
27.4%1997
6.3%2017
18.4%2007
32.6%1997
11.4%2017
16.6%2007
35.1%1997
10.6%2017
< 1 year 1 - 2 years
3.5%2002
1.3%2012
10.7%2002
5.8%2012 3.0%
2002
1.4%2012
11.0%2002
6.4%2012
7.1%2002
31.8%2012
4.7%2002
37.5%2012
6.8%2002
17.8%2012
4.0%2002
18.3%2012
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Percentage of Annual Resales that were Flips,
VIC SA4 Regions
Percentage of Total Annual Flips at a loss,
VIC SA4 Regions
SA4 Regions
2016 2017 2016 2017
< 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs
Ballarat 1.5% 5.4% 1.2% 6.1% 7.7% 14.1% 13.0% 11.3%
Bendigo 1.3% 4.7% 1.0% 4.5% 11.8% 21.9% 20.0% 22.7%
Geelong 0.9% 4.4% 1.1% 4.5% 12.1% 14.2% 6.7% 5.7%
Hume 0.9% 5.2% 1.6% 5.4% 18.8% 13.6% 14.3% 10.5%
Latrobe - Gippsland 1.1% 4.9% 1.0% 4.1% 10.8% 16.5% 15.4% 7.2%
Melboure - Inner 0.9% 3.6% 0.9% 4.4% 14.9% 16.8% 22.9% 17.5%
Melbourne - Inner East 1.7% 5.9% 1.3% 6.9% 4.9% 7.3% 9.1% 10.3%
Melbourne - Inner South 1.3% 5.6% 0.6% 5.4% 8.1% 9.1% 9.1% 9.6%
Melbourne - North East 1.1% 4.8% 1.4% 6.4% 7.5% 12.5% 4.8% 6.5%
Melbourne - North West 1.8% 7.0% 1.3% 7.6% 18.5% 11.5% 5.9% 3.5%
Melbourne - Outer East 1.3% 5.1% 1.1% 6.0% 4.8% 4.0% 7.6% 5.2%
Melbourne - South East 1.7% 6.7% 1.7% 7.8% 3.8% 5.2% 6.0% 3.7%
Melbourne - West 1.8% 6.7% 1.9% 7.3% 11.0% 6.4% 4.7% 3.6%
Mornington Penninsula 1.6% 5.1% 1.8% 6.9% 12.2% 6.0% 3.0% 1.8%
North West 1.2% 6.2% 1.4% 5.1% 10.0% 10.9% 0.0% 13.4%
Shepparton 0.3% 4.3% 1.2% 4.5% 0.0% 11.8% 20.0% 15.8%
Warranambool & South West 0.7% 3.4% 0.5% 3.8% 12.5% 13.2% 0.0% 10.9%
Victoria
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QueenslandQueensland has recorded only moderate value growth over recent years with values generally increasing in the south-east corner of the state while they have generally fallen elsewhere. Across the state there are currently few flips occurring however, the instance of flipping is slightly greater outside of Brisbane. When properties are flipped more than 10% of those flips in Brisbane and regional QLD are reselling at a price lower than the previous purchase price.
2.7%2007
2.7%1997
Percentage of annual resales that were flips
Brisbane Regional QLD
1.1%2017
11.2%2007
8.0%1997
5.4%2017
3.7%2007
3.0%1997
1.6%2017
15.1%2007
9.8%1997
6.6%2017
4.8%2007
28.2%1997
Percentage of total flips at a loss
Brisbane Regional QLD
11.3%2017
4.6%2007
32.4%1997
10.0%2017
4.8%2007
27.9%1997
14.4%2017
4.8%2007
33.0%1997
11.7%2017
< 1 year 1 - 2 years
4.1%2002
0.9%2012
11.1%2002
4.3%2012 4.2%
2002
1.2%2012
10.7%2002
5.5%2012
5.4%2002
36.8%2012
4.5%2002
53.2%2012
8.2%2002
35.2%2012
8.2%2002
44.4%2012
CoreLogic Property Flipping Report December 2017 | 13
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Percentage of Annual Resales that were Flips,
QLD SA4 Regions
Percentage of Total Annual Flips at a loss,
QLD SA4 Regions
SA4 Regions
2016 2017 2016 2017
< 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs
Brisbane - East 1.1% 5.1% 1.5% 5.5% 10.0% 10.4% 13.2% 9.2%
Brisbane - North 1.1% 4.7% 0.9% 5.4% 5.6% 4.6% 13.8% 7.6%
Brisbane - South 1.0% 6.1% 1.0% 4.9% 6.0% 4.8% 8.9% 11.0%
Brisbane - West 1.0% 4.1% 1.0% 4.7% 7.1% 8.9% 11.1% 7.5%
Brisbane Inner City 1.2% 5.7% 0.8% 5.2% 6.7% 12.2% 7.9% 26.7%
Cairns 1.1% 6.1% 1.2% 6.0% 9.5% 16.0% 24.4% 19.2%
Darling Downs - Maranoa 0.8% 4.9% 0.9% 4.5% 25.0% 10.6% 44.4% 23.9%
Fitzroy 1.0% 3.4% 1.0% 3.2% 31.3% 45.5% 38.9% 41.1%
Gold Coast 1.7% 6.6% 2.2% 7.9% 10.0% 4.7% 10.0% 5.2%
Ipswich 1.3% 4.8% 1.3% 5.6% 4.0% 13.4% 7.3% 8.2%
Logan - Beaudesert 1.0% 4.3% 1.0% 5.2% 5.7% 6.5% 19.6% 5.7%
Mackay 0.3% 2.5% 1.2% 3.2% 0.0% 57.7% 31.3% 41.5%
Moreton Bay - North 1.5% 6.6% 1.6% 6.6% 18.2% 8.4% 8.3% 4.4%
Moreton Bay - South 1.4% 6.4% 1.1% 5.3% 10.8% 4.8% 14.3% 6.7%
Queensland - Outback 0.4% 3.1% 0.0% 2.8% 100.0% 12.5% N/A 28.6%
Sunshine Coast 1.2% 7.1% 1.3% 7.2% 14.0% 7.0% 12.4% 5.4%
Toowoomba 1.6% 4.7% 1.2% 5.1% 22.2% 14.8% 15.4% 19.8%
Townsville 1.0% 4.7% 0.9% 4.1% 36.4% 42.9% 26.3% 48.8%
Wide Bay 0.9% 6.0% 1.5% 6.2% 30.3% 21.4% 14.3% 21.4%
Queensland
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South AustraliaValues have increased at a moderate pace over recent years in Greater Adelaide while values have been virtually stagnant or have fallen outside of the capital city. There has been an ongoing decline in flipping behaviour over recent years across Adelaide and Regional SA. Of those properties that are flipped, relatively few are flipping at a loss in Adelaide however, around 20% of all flips in regional SA are at a loss.
2.5%2007
4.3%1997
Percentage of annual resales that were flips
Adelaide Regional SA
1.1%2017
10.6%2007
22.6%1997
4.2%2017
2.4%2007
5.0%1997
1.1%2017
10.9%2007
23.9%1997
3.9%2017
8.9%2007
29.3%1997
Percentage of total flips at a loss
Adelaide Regional SA
10.3%2017
8.8%2007
42.5%1997
11.2%2017
8.1%2007
27.1%1997
18.2%2017
8.3%2007
23.4%1997
20.7%2017
< 1 year 1 - 2 years
4.1%2002
1.0%2012
15.6%2002
5.0%2012
3.2%2002
1.3%2012
14.4%2002
4.7%2012
4.3%2002
41.3%2012
3.3%2002
41.6%2012
10.7%2002
34.3%2012
5.7%2002
30.9%2012
CoreLogic Property Flipping Report December 2017 | 15
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Percentage of Annual Resales that were Flips,
SA SA4 Regions
Percentage of Total Annual Flips at a loss,
SA SA4 Regions
SA4 Regions
2016 2017 2016 2017
< 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs
Adelaide - Central & Hills 1.1% 3.8% 0.9% 4.4% 5.7% 12.5% 0.0% 9.6%
Adelaide - North 1.0% 4.3% 1.3% 4.2% 13.0% 11.1% 8.0% 14.7%
Adelaide - South 1.0% 4.4% 1.3% 4.2% 16.2% 14.4% 14.3% 8.6%
Adelaide - West 1.0% 3.8% 0.9% 5.0% 13.6% 12.2% 21.1% 12.3%
Barossa - Yorke - Mid North 1.0% 5.1% 1.2% 3.1% 11.1% 20.0% 36.4% 27.6%
South Australia - Outback 0.8% 2.9% 1.6% 2.9% 33.3% 27.3% 0.0% 45.5%
South Australia - South East 0.7% 4.1% 0.9% 4.5% 8.3% 20.3% 12.5% 14.8%
South Australia
16 | CoreLogic Property Flipping Report December 2017
© Copyright 2017 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved.
Western AustraliaWestern Australia has been seeing values fall across the state over recent years with values around 10% lower than their peak in Perth and regions linked to the resources sectors having recorded much greater value declines. As the market has weakened there has been fewer vendors flipping properties which makes sense given that value have been declining. Those vendors that have attempted to flip properties over recent years have seen a comparatively high proportion of these properties reselling for less than their previous purchase price.
3.9%2007
3.0%1997
Percentage of annual resales that were flips
Perth Regional WA
0.8%2017
16.4%2007
12.5%1997
3.2%2017
4.7%20074.0%
1997
0.8%2017
20.2%2007
15.5%1997
3.1%2017
2.4%2007
23.9%1997
Percentage of total flips at a loss
Perth Regional WA
30.1%2017
1.4%2007
28.5%1997
47.7%2017
2.6%2007
12.1%1997
19.5%2017
2.2%2007
11.8%1997
22.9%2017
< 1 year 1 - 2 years
3.0%2002
0.7%2012
11.4%2002
4.3%2012
2.0%2002
0.6%2012
9.0%2002
4.8%2012
5.8%2002
33.9%2012
4.6%2002
37.6%2012
14.1%2002
16.7%2012
11.6%2002
23.0%2012
CoreLogic Property Flipping Report December 2017 | 17
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Percentage of Annual Resales that were Flips,
WA SA4 Regions
Percentage of Total Annual Flips at a loss,
WA SA4 Regions
SA4 Regions
2016 2017 2016 2017
< 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs
Bunbury 0.6% 3.8% 0.9% 3.4% 42.9% 26.7% 20.0% 18.9%
Mandurah 0.9% 5.5% 0.8% 3.7% 25.0% 28.3% 33.3% 48.2%
Perth - Inner 0.9% 3.4% 1.3% 3.6% 63.2% 52.0% 31.0% 41.3%
Perth - North East 0.6% 4.3% 0.5% 3.9% 47.1% 36.0% 28.6% 50.5%
Perth - North West 0.6% 3.3% 0.6% 2.9% 46.2% 46.6% 37.8% 49.7%
Perth - South East 0.6% 3.4% 0.6% 3.0% 32.4% 39.0% 19.4% 49.1%
Perth - South West 0.9% 4.2% 1.1% 2.9% 48.9% 30.4% 30.2% 45.1%
Western Australia - Outback 0.7% 2.1% 0.8% 3.2% 44.4% 27.6% 23.1% 36.1%
Western Australia - Wheat Belt 0.5% 3.7% 0.7% 3.9% 33.3% 25.0% 12.5% 19.1%
Western Australia
18 | CoreLogic Property Flipping Report December 2017
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TasmaniaThe Tasmanian housing market has been fairly soft for many years however, value growth has accelerated, particularly in Hobart, over the past 18 to 24 months. As growth has accelerated flipping has increased, although it is largely flips after 12 months, however flipping remains substantially lower than previous peaks. Of those owners that are flipping properties, the proportion reselling for less than their previous purchase price has reduced substantially over recent years.
3.1%20072.9%
1997
Percentage of annual resales that were flips
Hobart Regional TAS
1.3%2017
11.6%2007
12.3%1997
5.3%2017 3.1%
20073.1%1997
1.2%2017
12.0%200710.8%
1997
5.3%2017
6.3%2007
33.3%1997
Percentage of total flips at a loss
Hobart Regional TAS
17.4%2017
5.1%2007
42.5%1997
6.8%2017
6.3%2007
33.3%1997
14.8%2017
5.1%2007
42.5%1997
20.8%2017
< 1 year 1 - 2 years
3.2%2002
1.2%2012
9.5%2002
6.0%2012
2.5%2002
1.5%2012
8.9%2002
5.1%2012
11.8%2002
38.5%2012
6.1%2002
42.9%2012
11.8%2002
40.4%2012
6.1%2002
36.6%2012
CoreLogic Property Flipping Report December 2017 | 19
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Percentage of Annual Resales that were Flips,
TAS SA4 Regions
Percentage of Total Annual Flips at a loss,
TAS SA4 Regions
SA4 Regions
2016 2017 2016 2017
< 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs < 1 Yr 1-2 Yrs
Hobart 1.1% 4.7% 1.3% 5.3% 20.0% 8.0% 17.4% 6.8%
Launceston & North East 1.2% 4.9% 1.5% 5.1% 28.0% 21.9% 10.8% 13.7%
South East 1.0% 5.5% 0.9% 7.1% 33.3% 15.6% 33.3% 22.4%
West & North West 1.1% 5.0% 1.0% 4.8% 0.0% 25.0% 8.8% 29.9%
Tasmania
20 | CoreLogic Property Flipping Report December 2017
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Northern TerritoryNorthern Territory’s housing market has been weak for a number of years with dwelling values in Darwin and regional NT substantially lower than their previous peaks. As a result, there has been an ongoing decline in the proportion of vendors flipping their properties. Of this vendors choosing to flip properties, they are incurring a much higher instance of reselling for a loss than vendors in other states and territories.
5.8%2007
6.6%2002
Percentage of annual resales that were flips
Darwin Regional NT
1.9%2017
23.4%2007
41.0%2002
4.1%2017 4.3%
2007
10.3%2002
0.6%2017
19.2%2007
38.4%2002
4.7%2017
14.7%2007
33.3%2002
Percentage of total flips at a loss
Darwin Regional NT
35.3%2017
14.5%2007
27.5%2002
70.3%2017
5.3%2007
13.3%2002
50.0%2017
25.9%2007
7.1%2002
40.0%2017
< 1 year 1 - 2 years
1.8%2012
6.3%2012
1.6%2012
7.5%2012
40.7%2012
33.%2012
0.0%2012
21.9%2012
CoreLogic Property Flipping Report December 2017 | 21
© Copyright 2017 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved.
22 | CoreLogic Property Flipping Report December 2017
© Copyright 2017 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved.
Australian Capital Territory
1.6%2007
3.5%1997
Percentage of annual resales that were flips
Canberra
1.5%2017
7.1%2007
11.2%1997
6.0%2017
9.1%2007
33.3%1997
Percentage of total flips at a loss
Canberra
11.9%2017
6.3%2007
55.6%1997
6.8%2017
As the rate of value growth has accelerated in Canberra recently the instances of property owners flipping has also increased although it remains well below previous peak levels. When owners flip there properties if they flip after a year there is a higher likelihood that they will sell for a loss compared to if they hold for between one and two years.
< 1 year 1 - 2 years
2.6%2002
1.0%2012
10.6%2002
4.7%2012
6.5%2002
19.0%2012
3.3%2002
21.7%2012
CoreLogic Property Flipping Report December 2017 | 23
© Copyright 2017 | RP Data Pty Ltd trading as CoreLogic Asia Pacific (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved.
In compiling this publication, RP Data Pty Ltd trading as CoreLogic has relied upon information supplied by a number of external sources. CoreLogic does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information in this publication through any cause whatsoever and limits any liability it may have to the amount paid to CoreLogic for the supply of such information.
Queensland DataBased on or contains data provided by the State of Queensland (Department of Natural Resources and Mines) 2017. In consideration of the State permitting use of this data you acknowledge and agree that the State gives no warranty in relation to the data (including accuracy, reliability, completeness, currency or suitability) and accepts no liability (including without limitation, liability in negligence) for any loss, damage or costs (including consequential damage) relating to any use of the data. Data must not be used for direct marketing or be used in breach of the privacy laws.
South Australian Data© 2017 Copyright in this information belongs to the South Australian Government and the South Australian Government does not accept any responsibility for the accuracy or completeness of the information or its suitability for purpose.
New South Wales DataContains property sales information provided under licence from the Land and Property Information (“LPI”). RP Data Pty Ltd trading as CoreLogic is authorised as a Property Sales Information provider by the LPI.
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Base data from the LIST © State of Tasmania http://www.thelist.tas.gov.au
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