Yahoo Finance Aussie suburbs where property is selling at a loss
Two in five homeowners copped a loss in one Melbourne suburb.
Property owners who sell up are largely making a profit as home prices recover, but there are some suburbs where owners are more likely to lose cash.
CoreLogic’s latest Pain and Gain report found 93.5 per cent of the property resales in the September quarter made a gain, with the average owner pocketing a profit of $298,000. This was up from 92.9 per cent in the June quarter.
Houses are much more profitable for resale than units, with 96.8 per cent of houses making an average profit of $364,000. In comparison, around 87.4 per cent of unit resales made an average profit of $167,000.
Do you have a story to share? Contact tamika.seeto@yahooinc.com
Rapidly rising interest rates have forced some new homeowners to resell quickly, and CoreLogic noted there had been an increase in these sellers making a loss.
For property owners who’d had their home for three years or less, the number of resales making a loss increased to 6.6 per cent in the quarter, up from 3.6 per cent just 12 months ago.
RELATED
Property from $174,000: Most affordable suburbs for 2023 revealed
$70m mansion tops Australia's biggest property sales of 2023 - see inside the lavish estate
Warning and major changes: 5 things to know about 2024 Australian housing market
CoreLogic head of research Eliza Owen said the increase in short-term resales could be a reflection of higher mortgage stress.
"While the portion of short-term reselling dipped marginally, quarter on quarter, resales with a hold period of three years or less hit a decade high in the year to September,” Owen said.
Suburbs with the biggest losses
Where property is being sold at a loss, the average amount owners are losing is $40,000. The majority of properties to sell at a loss were units, making up 70.9 per cent.
Among the capital cities, Darwin had the highest number of loss-making resales (30.3 per cent), followed by Perth (10 per cent). Sydney was next (8.9 per cent), followed by Melbourne (8.7 per cent).
Focusing on Australia’s two biggest cities, Sydney and Melbourne, these were the suburbs with the biggest number of loss-making sales. In one Melbourne suburb, a whopping two in five sellers copped a loss.
Sydney
Ryde - 24.2 per cent, $55,000 loss
Burwood - 23.7 per cent, $34,500 loss
Strathfield - 22.8 per cent, $50,000 loss
Parramatta - 22.5 per cent, $47,300 loss
Cumberland - 17.4 per cent, $40,000 loss
Melbourne
Melbourne - 41.1 per cent, $59,000 loss
Stonnington - 34.2 per cent, $60,000 loss
Boroondara - 18.8 per cent, $44,950 loss
Port Phillip - 18.3 per cent, $34,500 loss
Moonee Valley - 17.7 per cent, $50,000 loss
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.
