The proportion of Australian homes selling at a loss is rising, particularly for units, according to new data from CoreLogic. The analytics firm’s quarterly Pain and Gain report tracks the proportion of properties that sold for higher prices than they were previously bought for during a particular quarter.
In the September quarter, only 2.3% of all properties sold in Sydney and 4.9% of all properties sold in Melbourne were done so at a loss. These figures are well below the national average of 9.4%.
As the following table indicates, the proportion of loss-making sales for houses was well below those for units during the September quarter, with the exception of Sydney.
Proportion of total resales at a loss/gain; houses versus units; Sept 2016 quarter
Houses | Houses | Units | Units | |
Region | Pain | Gain | Pain | Gain |
Sydney | 2.5% | 97.5% | 1.9% | 98.1% |
Regional NSW | 5.6% | 94.4% | 10.6% | 89.4% |
Melbourne | 2.1% | 97.9% | 10.5% | 89.5% |
Regional Victoria | 7.8% | 92.2% | 10.2% | 89.8% |
Brisbane | 4.8% | 95.2% | 19.9% | 80.1% |
Regional Queensland | 16.8% | 83.2% | 22.3% | 77.7% |
Adelaide | 5.9% | 94.1% | 11.3% | 88.7% |
Regional South Australia | 18.4% | 81.6% | 24.6% | 75.4% |
Perth | 17.3% | 82.7% | 32.4% | 67.6% |
Regional Western Australia | 29.1% | 70.9% | 48.9% | 51.1% |
Hobart | 7.6% | 92.4% | 10.9% | 89.1% |
Regional Tasmania | 19.6% | 80.4% | 27.2% | 72.8% |
Darwin | 26.4% | 73.6% | 41% | 59% |
Regional Northern Territory | 13.5% | 86.5% | 41.2% | 58.8% |
Australian Capital Territory | 3.4% | 96.6% | 25.5% | 74.5% |
National | 8% | 92% | 12.7% | 87.3% |
Cap city | 5.6% | 94.4% | 10.2% | 89.8% |
Regional | 11.7% | 88.3% | 18.4% | 81.6% |
“Across the combined capital cities, the report shows that houses were almost half as likely to be resold at a loss compared to units over the September 2016 quarter, with the figures recorded at 5.6% and 10.2% respectively,” the CoreLogic reportsaid.
With the majority of properties selling for prices higher than what they were bought for, CoreLogic said that $17bn in realised profits were recorded during the quarter, eclipsing the $477.9m figure seen for loss-making sales.
While the proportion of loss-making sales in Sydney and Melbourne remain at historically low levels, this was offset by the noticeable lift in loss-making sales in the capitals most aligned with the mining sector.
From a national perspective, CoreLogicsaid the proportion of loss-making property resales for both houses and apartments have trended higher over the past year.
Collections: Mortgage News
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