The winners and losers of the property resale market

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The latest statistics indicate there are immense profits and losses to be made in the Australian property market at present.

In particular, capital cities dominate CoreLogic’s Pain and Gain report for the quarter of June 2015, in terms of having the lowest proportions of loss-making resales.

The report highlights Sydney (2.0%), Melbourne (5.7%), Perth (8.6%), and Regional Victoria (8.6%) as the markets with the lowest proportions of loss-making resales.

On the other hand, the regions with the highest proportions of loss-making resales were Regional Western Australia (24.5%), Regional Queensland (22.5%), Regional South Australia (20.9%), and Regional Tasmania (19.9%).

Sydney’s proportion of total resales at a loss for units (1.8%) is still lower than its total for houses at 2.2%.

Compared to the capital cities’ markets, regional markets had overall the most proportion of loss-making resales for both houses and units.

The report also suggests that some of these loss-making resales came at a bad time, when investments in regional mining operations have slowed down.

Many homeowners wanted to sell their properties in these regions with a struggling economy, but with buyer demand still low, owners have grown desperate enough to offer their homes at a loss.

Below is a table depicting the average hold period of resales at a loss/gain, for both houses and units for the June 2015 quarter.
 
Region Houses Units
Pain Gain Pain Gain
Sydney 6.4 10.6 7.2 8.2
Regional NSW 6.4 10.2 7.6 9.1
Melbourne 4.0 11.2 5.0 9.7
Regional VIC 5.3 10.9 6.2 9.8
Brisbane 5.7 10.2 5.9 9.0
Regional Qld 6.0 10.4 7.3 9.7
Adelaide 5.0 9.3 5.0 9.0
Regional SA 6.1 10.0 5.5 10.7
Regional WA 5.9 10.3 6.4 11.9
Hobart 5.1 10.6 5.2 9.9
Regional TAS 5.6 10.7 5.3 10.9
Darwin 4.2 8.0 4.9 7.1
Regional NT 5.3 6.7 6.9 6.5
Australian Capital Territory 5.1 10.6 4.3 9.3
National 5.7 10.3 6.3 9.0
Capital City 5.2 10.3 5.4 8.9
Regional 6.0 9.6 7.2 10.4
 
 
Source: Pain and Gain Report, June Quarter 2015


 

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