Perth's loss taking property sellers at 20 percent: CoreLogic
The latest CoreLogic Pain & Gain report had 20.1 percent of Perth homes resold at a loss, while in Darwin, 24.2 percent of homes resold at a loss; the highest proportion since December 2002.
Across the remaining capitals, the proportion of loss-making resales was: Sydney 2.4 percent, Melbourne 4.4%, Brisbane 8.4%, Adelaide 10.6%, Hobart 10.8% and Canberra 9.6%.
Across the regional markets, the proportion of loss-making resales increased in New South Wales, Victoria, Queensland and Western Australia, and was unchanged in South Australia.
Across the individual areas, the proportion of resales at a loss were recorded at: 7.3% in regional NSW, 9.3% in regional Vic, 19.8% in regional Qld, 21.7% in regional SA, 33.8% in regional WA, 19.6% in regional Tas and 21.2% in regional NT.
The report uncovers the profits earned and the losses made from property sales over the June 2016 quarter, and reveals which locations have been the most valuable for investment.
Based on the June quarter findings, 5.9% of capital city houses resold at a loss, up from 5.7% from the March 2016 quarter while units at 9.5% resold for less than the previous purchase price. Across regional housing markets, 12.2% of houses & 19.9% of units resold over the June 2016 quarter transacted below previous purchase price.
Regional areas experienced the highest proportion of total resales at a loss since the three months to August 2015 for houses and the three months to February 2016 for units.
Capital Cities Losses & Profits:
• $164,239,771 in losses from resales of capital city houses = $94,926 on average;
• $87,017,927 in losses from resales of capital city units = $67,456 on average;
• $9,953,211,125 realised for resale profit for capital city houses = $363,442 on average;
• Total resale profit for capital city units - $2,828,164,261 = $229,596 on average.
Regional Areas Losses & Profits:
• $139,475,875 worth of house resold at a loss = $64,423 average loss
• $68,199,797 units resold at a loss = $61,944 average loss
• $2,400,837,922 in profits realised for houses = $154,773 on average
• $475,731,130 in profit realised for units across regional areas = $107,680 on average.
CoreLogic researcher Cameron Kusher said while loss-making resales increased over the quarter, historically, most cities are still seeing quite a low instance of homes reselling at a loss.
"However, Perth and Darwin are the exceptions with the proportion of loss-making resales at, or close to historic highs.”
Around the country, the proportion of loss-making resales over the quarter increased across each capital city excluding Melbourne and Canberra.