57.5% of Perth unit resales saw a loss: CoreLogic Pain & Gain report
As with March quarter results, resales in the three months to June in Perth council regions showed a fairly steady portion of loss making sales, according to the recent CoreLogic Pain and Gain report.
The portion of loss making sales was 36.2 per cent, which the second-highest of the capital city markets behind Darwin (where more than half of resales saw a nominal decline).
The overall rate of loss making sales was steady, the report noted.
Unit sales saw a 2.5 percentage point increase in the portion of loss making sales, to 57.5 per cent.
The portion of loss making house sales fell 50 basis points to 32.2 per cent.
Source: CoreLogic Pain and Gain report
The council with the highest count of loss making unit sales was Stirling (84 sales), followed by Perth (53). These two regions accounted for around 30 per cent of loss making unit sales across Greater Perth.
The outlook for profitability across the Perth market in the second half of 2020 is more positive, as there are signs the market is returning to the upswing seen before COVID-19, the report noted.
Source: CoreLogic Pain and Gain report
Listings volumes and sales activity are rising across Perth, and through September CoreLogic’s home value index has shown signs of dwelling value increases.
As well as low mortgage rates and low COVID cases buoying market activity, WA has seen arguably the most demand-side housing stimulus from the state government on top of federal government schemes. This may serve to increase values and increase the incidence of profit making sales.