The Surge in Short-Term Property Resales: What You Need to Know

⚡️ Highlights:

1. The proportion of homes sold within three years of purchase is at its highest level on record.

2. Nationally, 16.0% of homes sold in August were purchased in the last three years, more than double the historical average.

3. Regional markets have a higher percentage of recently purchased homes sold compared to capital cities.

4. Brisbane, Perth, and Adelaide have the highest share of short-term resales among the individual capital cities.

5. Strong price growth since the start of the pandemic may be driving the increase in short-term reselling, as sellers can realize a strong profit to offset transactional costs or invest in higher-quality properties.

Additionally, the recent interest rate hikes have increased holding costs, leading some cash flow negative purchasers to sell and cash in on capital gains.

Executive Summary

In a recent report by CoreLogic, the real estate data analytics firm, a remarkable trend has emerged in the property market. The report indicates an unprecedented level of short-term property resales, especially in regional markets and specific capital cities. This article delves into the key findings of the report and what they mean for both first-time homebuyers and seasoned property investors.

The National Landscape

According to CoreLogic’s data, 16.0% of all homes sold in August were purchased within the last three years. This is a significant increase, more than doubling the historical average of 7.9%. The trend is even more pronounced in regional markets, where 20.5% of homes sold were recently acquired, compared to 13.7% in the combined capital cities.

Capital Cities in Focus

Among the capital cities, Brisbane, Perth, and Adelaide have shown the highest rates of short-term resales. This is particularly noteworthy given that these cities have experienced robust property price growth since the COVID-19 pandemic began in March 2020.

Key Drivers Behind the Trend

Capital Gain Opportunities

CoreLogic’s report highlights that periods of strong capital gains often coincide with increased short-term reselling. This allows sellers to realize substantial profits, which can be used to offset high transaction costs or invested in properties of higher value.

Reversal of Migration Trends

The surge in short-term resales may also be indicative of a reversal in migration trends that were influenced by the pandemic. This is particularly true for regions like Queensland, South Australia, and Western Australia, where property values have surged despite recent rate hikes.

The Impact of Interest Rate Hikes

The Reserve Bank’s aggressive stance on interest rates has led to increased holding costs for property owners. For many recent buyers who are operating on negative cash flow, selling now to capitalize on current gains is a financially prudent move.


The current boom in short-term property resales offers both opportunities and challenges. Whether you are a first-time homebuyer or a seasoned investor, understanding these trends can provide valuable insights for making informed property investment decisions.

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