People selling houses in Hastings have been making at least 10 per cent more pure profit than vendors in neighbouring Napier, a new report shows.
The latest Pain and Gain report from data analysts CoreLogic shows Napier property owners banked $14.4 million from property sales in the final three months of 2017.
That produced a median profit from sales of $157,400.
Sellers in Hastings banked a combined $10 million more of profit over the same period.
The report revealed the median profit from sales in Hastings was $161,000 – slightly higher than the median profit from sales in Napier.
Considering the median house price at the end of last year was $390,000 in Hastings and a $508,000 in Napier, people selling houses in Hastings, on average, made a 41 per cent profit (from time of purchase to sale), while those selling houses in Napier made about 30 per cent profit.
The median “hold period” for those achieving profit on sales was 8.6 years, the report said.
Nationally, the CoreLogic report showed that Aucklanders snapped up the greatest median profits per sale in the country at $370,000, up from $360,000 in the previous quarter. Queenstown Lakes followed at $357,000, up from $339,000 and recorded no loss making sales at all during the quarter.
The proportion of properties sold at a loss dropped slightly from 4.3% to 4% nationally, with gross losses of $13.9 million. Small increases were seen in Auckland (up 0.3%) and Hamilton (up 1.2%) during the quarter, but there was a substantial decline in Tauranga (down 2.5%).
Nationally, properties sold at a loss during the quarter had been owned for a median 4.2 years. This is slightly less that 4.5 years in the previous quarter, and likely driven by market fatigue in which owners question scope for future capital gains.