$65,000 hit: Aussie suburbs where property is selling at a loss
Two in five property sellers are copping a loss in one Melbourne suburb.
More new homebuyers are selling off their property at a loss, as they try to avoid the pain of rising mortgage repayments.
Looking at properties sold within just two years, CoreLogic found the portion of homes selling at a loss had increased to 9.7 per cent, up from just 2.7 per cent a year ago. The median amount lost was $30,000.
However, the losses were even bigger in some Aussie suburbs. In Sydney’s Strathfield, for example, nearly a third of all sellers made a loss of $65,000, on average. Meanwhile, in the Melbourne CBD, two in five sellers failed to make a profit, losing $47,500, on average.
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CoreLogic head of research Eliza Owen said the deep dive into short-term resales highlighted more pain for recent home buyers.
“Two years is a significant time period because we are two years on from the height of pandemic-related lockdowns, low interest rates, and have just passed the peak of transitions from low fixed rates to high variable rates,” Owen said.
There’s also a higher portion of new homebuyers selling up, with the number of homes sold within two years of purchase increasing by 1 per cent to 8.5 per cent over the past year.
“This suggests more sellers are willing to incur a loss at the moment, which could in part be the result of high interest rates,” Owen said.
Despite more new homebuyers selling at a loss, CoreLogic found overall profitability had actually increased for the first time in a year, with the number of properties making a profit jumping from 92.4 per cent to 92.8 per cent, quarter on quarter.
Suburbs with the biggest losses
Focusing on Australia’s two biggest cities, Sydney and Melbourne, these were the suburbs with the biggest percentage of loss-making sales and their median losses.
Sydney
Strathfield - 29.9 per cent of all sales, $65,000 loss
Parramatta - 27.4 per cent of all sales, $53,000 loss
Ryde - 25.8 per cent of all sales, $55,000 loss
Botany Bay - 17.4 per cent of all sales, $50,000 loss
Burwood, 16.7 per cent of all sales, $52,000 loss
Melbourne
Melbourne - 41.7 per cent of all sales, $47,500 loss
Stonnington - 27.5 per cent of all sales, $48,263 loss
Yarra - 22.5 per cent of all sales, $32,500 loss
Port Phillip - 20.1 per cent of all sales, $45,000 loss
Boroondara - 19.1 per cent of all sales, $55,000 loss
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