The waiting game is paying off for a growing number of homeowners, with more than a third at least doubling their money when selling.
Melbourne is one of the top spots in Australia for making a profit on property according to CoreLogic RP Data — and people that sit on their homes are the most likely to reap the benefits.
Only 6.5 per cent of sales in the September quarter last year failed to match their purchase price, while 35.7 per cent sold for double or more.
The number of people taking a hit when selling their property has fallen from 6.6 per cent the previous quarter and 7.4 per cent the previous year.
Holding on to a property for the long term was the key to value growth, according to CoreLogic RP Data research analyst Cameron Kusher.
People who made a profit owned their home for an average of 9.9 years, while a 16.8 year wait was the average for doubling the price.
Sellers in Knox were the most likely to pocket a profit, with 98.6 per cent of sales beating the previous price.
Boroondara, Bayside and Monash sellers made the most lucrative gains, with a median windfall of more than $400,000.
The gross profit in Monash was Melbourne’s largest at a whopping $196.7 million in the quarter.
Harcourts Judd White director Dexter Prack said highly regarded schools and infrastructure were the municipality’s main draws.
“Particularly in central Glen Waverley, the demand has just been absolutely crazy,” Mr Prack said.
Asian buyers had a strong presence in the market and were willing to pay a premium to secure properties in the school zones, he said.
Rapid price rises in Monash had pushed buyers to neighbouring areas such as Wantirna.
However, there was no sign of a slowdown as price records continued to tumble, Mr Prack said.
The staggering $2.055 million paid for a basic home at 18 Montclair Ave, Glen Waverley, showed the fierce competition for land.
The buyer had homed in on the 746sq m block’s potential and was planning to knock down the existing house, Mr Prack said.
Nicole Engwirda, Herald Sun, 13 January 2015