Manly, on Sydney’s northern beaches, topped this year’s most profitable area to sell a home, with vendors pocketing a nearly $2 million gain on average, and almost all sales making a profit, data from Suburbtrends reveals.
Sellers in Sydney’s eastern suburbs also had a bumper year, raking in a profit of $1.864 million on average, as demand for coastal and lifestyle locations soared during the pandemic.
Homes in Warringah and Pittwater in the northern beaches also delivered hefty returns, with vendors on average achieving profits of $1.325 million and $1.5 million respectively.
Almost all (98 per cent) of the homes sold in Warringah and Pittwater were profitable, while 96 per cent in the eastern suburbs achieved a profit.
Home sales that delivered the highest average profit were held for 10.3 years on average, although vendors in the eastern suburbs only kept the properties for 8.65 years.
Properties sold for more than $75,000 above the purchase price were deemed profitable, as this adequately covered both selling and purchase costs for the owners, and anything below was considered a loss, said Kent Lardner, director of Suburbtrends.
The result was based on 278,000 property sales in 2021 that could be matched to a prior sale.
“It was a year of very high profits for most home sellers, with Sydney’s northern beaches and eastern suburbs generating average gains of well over $1 million for the average seller,” said Mr Lardner.
“The findings highlighted the massive gains made in the premium coastal locations and also a number of regions benefiting from the ongoing exodus.
“The key driver for the largest gains appear to be the right asset class, [a house] in a premium coastal suburb.”
Amanda Gould, buyer’s agent and founder of HighSpec Properties, said demand for houses on the northern beaches has exploded during the pandemic.
“Buyer demand was the strongest demand I’ve seen in the 11 years that I’ve been buying properties in northern beaches,” she said.