OneRoof.co.nz Identifies NZ Suburbs Where Every Property Seller Is Making A Profit

• House sellers in 48 New Zealand suburbs have never made a loss in the last five years
• 'Bullet-proof' locations include rich-lister hangouts and affordable neighbourhoods
• Wellington Region had the most no-loss suburbs, but other standout locations are Dunedin, Rotorua and Whangarei
• Sellers in Greater Auckland beach town of Omaha enjoyed country’s highest median resale profit
• Research shows majority of sellers still turning a gross profit, despite downturn

A report released by property listings platform OneRoof.co.nz has identified the suburbs where every seller is making a profit – some of whom are banking well over $2 million on average.

Research from OneRoof and its data partner Valocity found 48 suburbs where no property has resold at a loss in the last five years.

The suburbs were scattered across the country and included rich-lister hangouts as well as more affordable neighbourhoods suitable for first home buyers.

Wellington Region had the most no-loss suburbs but other standout locations for resale gains were Dunedin, Rotorua and Whangarei.

Only one location within Greater Auckland features on the list, but sellers there enjoyed the country's highest median resale profit.

OneRoof.co.nz editor Owen Vaughan says the figures suggest these suburbs are as good as bullet-proof for homeowners who live there.

"The research paints a picture of seller profits and losses during one of the most tumultuous periods for the housing market, capturing the catch-up in the regions pre-Covid, the spike in profits in the 18 months after Covid, and the subsequent slump.

“It shows the large gains available to many sellers right now, despite challenging market conditions.”

Just under 6 percent of nationwide resales in the first three months of 2023 were sold for below the initial purchase price. “While that's up on the 2.1 percent recorded in 2022, it came at a time when the market was in the midst of the worst slump since the GFC and homeowners were battling floods and cyclones,” Vaughan says.

"Resale profits are also quite substantial. The nationwide median gain for the first three months of this year was $300,000, almost double what it was in 2018."

OneRoof Chief Greg Hornblow says the turn in market conditions and recent rise in auction clearance rates indicate a healthier environment for sellers for the second half of 2023.

"The overall market appears to have hit the bottom and already we're starting to see in some regions the green shoots of a recovery. No one should be expecting a boom-like revival in prices but buyers who have held off will find more and more reasons to re-engage with the market."

OneRoof and its data partner Valocity analysed all the settled residential resales between 2018 and Q1 2023, and identified which ones sold for a profit and which ones sold for a loss.

The five-year period was chosen as it covers the tail end of the housing market's most recent cycle and shows the impact of the post-Covid boom and the subsequent downturn.

All profit and loss figures were on-paper only and did not take into account the amount of money vendors spent upgrading or maintaining their property, or how much they owed to the bank.

Profit was defined as selling more than the previous purchase price, while loss was defined as selling for less than the previous purchase price.

Of the 304,079 resales analysed, 296,496 (97 percent) made a profit. Resale gains for the period analysed totalled $102.9 billion, while losses totalled $534 million.

Of the 48 suburbs where no home sold below its initial purchase price, sellers in the rich-lister beach town of Omaha made the biggest gains, in each of the years covered. Sale profits in the wealthy enclave jumped from a median of $446,500 to $2.21 million in 2022 and $2.57 million* in Q1 2023. (*Based on one Omaha resale, in Q1 2023.)

Last year, the 20 settled resales in the suburb collectively enjoyed profits of just over $50 million, almost quadruple the collective profits for 2018.

The research also found the biggest on-paper profit for Q1 2023 was $11.3 million for a Whitford mansion that sold for $20 million at the start of the year. The biggest overall profit between 2018 and 202 was $18.25m, for a luxury home in Herne Bay, which sold for $23.5 million in 2020.

The biggest loss for Q1 2023 was $1.5 million for a penthouse apartment in Mission Bay while the biggest overall loss for 2018-2023 was $7.2 million for Sir John Key's former Parnell mansion, which sold for $16.3 million in 2022.

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