‘Hold’: Property warning to Aussies in these 19 suburbs
Australian homeowners in Western Australia and the Northern Territory have been warned to hold onto their houses, after research revealed a vast majority of homes in these states sell at a loss.
According to CoreLogic’s Pain and Gain report for the 2020 September quarter, Perth had the highest percentage of loss-making sales (64.6 per cent) in the whole country, followed by Darwin at 57.9 per cent.
Perth values are 19.9 per cent below the record-high they reached in 2014, prompting a stern warning from the property experts: “Owners will have to hold for a long time before yielding a profit on their purchase”.
There were 19 suburbs across Australia where more than 30 per cent of homes were selling for a loss, and they were all located in WA and the NT.
Here they are.
Suburbs in Western Australia where homes sell for a loss
Armadale - 33.4 per cent
Bayswarer - 45.4 per cent
Belmont - 37.6 per cent
Claremont - 36.4 per cent
Cockburn - 31.6 per cent
Gosnells - 35.3 per cent
Kwinana - 38.1 per cent
Mandurah - 40 per cent
Perth - 64.6 per cent
Rockingham - 37.7 per cent
South Perth - 33.7 per cent
Stirling - 36.8 per cent
Subiaco - 31.8 per cent
Swan - 38.6 per cent
Vincent - 38.7 per cent
Wanneroo - 32.9 per cent
But it’s not all doom and gloom. The rate of profit-making sales across WA increased to 67.5 per cent in the September quarter - up from 63.1 per cent in June.
“This follows the start of a recovery trend observed across Perth dwelling values in the second half of 2019, which was briefly disrupted by COVID-19 in the first half of 2020,” the report stated.
“Between low interest rates, low incidences of COVID-19 and a pick-up in mining activity, the rate of profit-making sales across the city is likely to improve.”
Suburbs in the Northern Territory where homes sell for a loss
Darwin - 57.9 per cent
Litchfield - 36.1 per cent
Palmerston - 41 per cent
Darwin has consistently seen the weakest rate of profit-making sales among the capital city markets since April 2015, with less than half of resales across Darwin selling from a profit in the September quarter.
Units were even worse than houses, where just 27.4 per cent of units sold for a profit in the September quarter compared to 61.6 per cent of houses.
Find out more about The Broke Millennials Club’s 6-Week Bootcamp here. And join the conversation on Facebook.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter to make 2021 your best (financial) year yet.