The West

Perth home  sellers reap GFC reward
Boom town: Joondalup sellers have cashed in. Picture: Gerald Moscarda/The West Australian

Perth homeowners who bought in the pre-global financial crisis property boom are cashing in, making hundreds of thousands of dollars selling their houses.

Four in 10 sellers across Perth have more than doubled their money as the homes they bought a decade ago attract top dollar.

Figures compiled by RP Data show that in the three months to March, sellers across Perth made a combined $1.7 billion in profit.

The best median gross profit, at $437,500, was made by home- owners selling in Nedlands.

Across all Perth council areas, 95 per cent of homes sold during the first three months of the year returned a gross profit.

Those gaining the most were homeowners who bought into the Perth market about a decade ago, just as prices started to climb in response to the mining boom.

Areas such as Nedlands, Murray (net median profit of $285,000), Mosman Park ($225,000), Cottesloe ($374,000) and Joondalup ($288,250) all delivered big gains to those who bought early and stayed put.

Real Estate Institute of WA president David Airey said the pre-GFC property boom was a one-off.

"The growth spurt in 2006-07 was exceptional and unlikely to be repeated, but even those who bought at the top of that market, when the median house price peaked at around $465,000, will have experienced some gain if they researched the market, didn't extend themselves and bought wisely," he said.

While most sellers in the March quarter benefited, a group of Perth home owners lost a collective $31 million.

Across the city, just 0.4 per cent of homes bought at least a decade ago were sold at a loss in the quarter. The highest rate of loss, at 12 per cent, was for those homes bought and sold within the past year.

RP analyst Cameron Kusher said units, particularly in those areas considered "lifestyle" locations, were more likely to dis- appoint owners than detached houses.

The West Australian

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