property flipping report - corelogic · property and other encumbrances such as tenancy, location,...

Property Flipping ReportPrepared by CoreLogic

http://www.corelogic.com.au

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


CoreLogic Property Flipping Report December 2017 | 3


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 well 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.




NationalOver the 12 months to June 2017, dwellings were sold after having been held for less than a year nationally with a further resold after being owned for between one and two years. These figures represented of all resold property sales over the year. Flipping remains

Percentage of homes flipped < 12 mths

2017

XX% XX%XX% XX%2000s

Percentage of homes flipped between 12 - 24 mths

20172000s




Regions

Percentage of sales that were flips Percentage of flips at a profit

< 1 Year 1 - 2 Years < 1 Year 1 - 2 Years

Sydney XX%

Regional NSW XX%

Melbourne XX%

Regional VIC XX%

Brisbane XX%

Regional QLD XX%

Adelaide XX%

Regional SA XX%

Perth XX%

Regional WA XX%

Hobart XX%

Regional TAS XX%

Darwin XX%

Regional NT XX%

Canberra XX%

National XX%

Combined Capitals XX%

Combined Regional XX%

Flipping Characteristics by State, 12 months to June 2017

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




Capital Cities vs RegionsAcross the combined capital city housing markets over the 12 months to June 2017,

of all resales were flipped in less than 12 months while of all sales were of properties held for between one and two years.

Over the past year, of combined capital city flips in less than 12 months and of combined regional market flips held for less than 12 months resold at a loss.

of capital city dwellings resold between one and two years resold at compared to of properties across the regional markets. The data highlights that




XX%2007

XX%1997

Percentage of annual resales that were flips

Combined Capital Cities Combined Regional Markets

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2007

XX%1997

Percentage of total flips at a loss

Combined Capital Cities Combined Regional Markets

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

< 1 year 1 - 2 years

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012




New South WalesThe New South Wales housing market has been


Sydney Regional NSW


Sydney Regional NSW


XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012




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

Central Coast

Central West

Coffs Harbour - Grafton

Far West & Orana

Hunter Valley ex Newcastle

Illawarra

Mid North Coast

Murray

New England & North West

Newcastle & Lake Macquarie

Richmond - Tweed

Riverina

Southern Highlands & Shoalhaven

Sydney - Baulkham Hills & Hawkesbury

Sydney - Blacktown

Sydney - City & Inner South

Sydney - Eastern Suburbs

Sydney - Inner South West

Sydney - Inner West

Sydney - North Sydney & Hornsby

Sydney - Northern Beaches

Sydney - Outer South West

Sydney - Outer West & Blue Mountains

Sydney - Parramatta

Sydney - Ryde

Sydney - South West

Sydney - Sutherland

New South Wales

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




VictoriaVictoria’s housing market has seen


Melbourne Regional VIC


Melbourne Regional VIC


XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012





VIC SA4 Regions


VIC SA4 Regions

SA4 Regions

2016 2017 2016 2017


Ballarat

Bendigo

Geelong

Hume

Latrobe - Gippsland

Melboure - Inner

Melbourne - Inner East

Melbourne - Inner South

Melbourne - North East

Melbourne - North West

Melbourne - Outer East

Melbourne - South East

Melbourne - West

Mornington Penninsula

North West

Shepparton

Warranambool & South West

Victoria

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




QueenslandQueensland has recorded only


Brisbane Regional QLD


Brisbane Regional QLD


XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012





QLD SA4 Regions


QLD SA4 Regions

SA4 Regions

2016 2017 2016 2017


Brisbane - East

Brisbane - North

Brisbane - South

Brisbane - West

Brisbane Inner City

Cairns

Darling Downs - Maranoa

Fitzroy

Gold Coast

Ipswich

Logan - Beaudesert

Mackay

Moreton Bay - North

Moreton Bay - South

Queensland - Outback

Sunshine Coast

Toowoomba

Townsville

Wide Bay

Queensland

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




South AustraliaValues have increased at a


Adelaide Regional SA


Adelaide Regional SA


XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012





SA SA4 Regions


SA SA4 Regions

SA4 Regions

2016 2017 2016 2017


Adelaide - Central & Hills

Adelaide - North

Adelaide - South

Adelaide - West

Barossa - Yorke - Mid North

South Australia - Outback

South Australia - South East

South Australia

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




Western AustraliaWestern Australia has been seeing values


Perth Regional WA


Perth Regional WA



XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012





WA SA4 Regions


WA SA4 Regions

SA4 Regions

2016 2017 2016 2017


Bunbury

Mandurah

Perth - Inner

Perth - North East

Perth - North West

Perth - South East

Perth - South West

Western Australia - Outback

Western Australia - Wheat Belt

Western Australia

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




TasmaniaThe Tasmanian housing market has been fairly


Hobart Regional TAS


Hobart Regional TAS


XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012





TAS SA4 Regions


TAS SA4 Regions

SA4 Regions

2016 2017 2016 2017


Hobart

Launceston & North East

South East

West & North West

Tasmania

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%




Northern TerritoryNorthern Territory’s housing market has been


Darwin Regional NT


Darwin Regional NT



XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007XX%

1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997

XX%2017

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012




Australian Capital Territory

XX%2007

XX%1997


Canberra

XX%2017

XX%2007

XX%1997

XX%2017

XX%2007

XX%1997


Canberra

XX%2017

XX%2007

XX%1997

XX%2017

As the rate of value growth has


XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012

XX%2002

XX%2012




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.

Victorian DataThe State of Victoria owns the copyright in the Property Sales Data and reproduction of that data in any way without the consent of

the State of Victoria will constitute a breach of the Copyright Act 1968 (Cth). The State of Victoria does not warrant the accuracy or completeness of the Property Sales Data and any person using or relying upon such information does so on the basis that the State of Victoria accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the information supplied.

Western Australian DataBased on information provided by and with the permission of the Western Australian Land Information Authority (2017) trading as Landgate.

Australian Capital Territory DataThe Territory Data is the property of the Australian Capital Territory. No part of it may in any form or by any means (electronic, mechanical, microcopying, photocopying, recording or otherwise) be reproduced, stored in a retrieval system or transmitted without prior written permission. Enquiries should be directed to: Director, Customer Services ACT Planning and Land Authority GPO Box 1908 Canberra ACT 2601.

Tasmanian DataThis product incorporates data that is copyright owned by the Crown in Right of Tasmania. The data has been used in the product with the permission of the Crown in Right of Tasmania. The Crown in Right of Tasmania and its employees and agents:

a. give no warranty regarding the data'saccuracy, completeness, currency orsuitability for any particular purpose;and do not accept liability howsoeverarising, including but not limited tonegligence for any loss resulting fromthe use of or reliance upon the data.

Base data from the LIST © State of Tasmania http://www.thelist.tas.gov.au


© 2017 CoreLogic, Inc. No unauthorised use or disclosure. All rights reserved.

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property flipping report - corelogic · property and other encumbrances such as tenancy, location,...

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