Gold Coast remains the epicentre as the number of homes selling at a loss drops across Australia: RP Data

Property ObserverDecember 7, 2020

The instances of homes selling at a loss has begun to ease, according to an RP Data capital markets report.

Over the three months to September 2012, 13.5% of all homes sold were transacted at a price which was less than their initial purchase price, the report says.

"Since that time, the proportion of homes selling at a loss has eased. Over the three months to December 2012, 12.5% of all homes sold transacted at a price which was less than their initial purchase price," the report says.

"At the same time a year earlier, 10.8% of homes sold for less than their purchase price."

There has also been a rise inthe proportion of homes selling for more than double their initial purchase price.

Over the December quarter, 32.1% of homes sold transacted for more than double their purchase price, up from a low of 30.9% of homes over the September 2012 quarter.

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The report also found that homes in coastal and 'lifestyle' housing markets are much more likely to sell at a loss.

"Over recent years, the market performance in these regions has been hampered by much lower housing demand as interstate migration has slowed and the tourism market has also eased," the report says.

Three of Queensland’s major coastal markets have had the largest proportion of homes selling at a loss over the three months to December 2012.

On the Gold Coast, 39.4% of all homes sold at a loss over the quarter followed by 34.5% of sales on the Sunshine Coast and 33.8% of homes in the Far North region.

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