Almost one in five of Melbourne City resales making a loss: CoreLogic RP Data

Melbourne inner city vendors lost a total of $4.5 million in the December quarter.

The local government area had the highest rate of loss-making sales of any Melbourne region in the three month period. According to CoreLogic RP Data's latest Pain and Gain report, 17.3% of Melbourne City resales in the final quarter of 2014 made a loss.

The Melbourne local government area includes Melbourne's CBD, Carlton, parts of Carlton North, Docklands, East Melbourne, some parts of Flemington, Jolimont, Kensington, Parkville, Southbank and West Melbourne.

It also includes parts of North Melbourne, Port Melbourne, South Wharf and South Yarra.

The median loss for Melbourne City resales in the December quarter was $27,350. With a total of $4,527,759 lost by vendors, the region also recorded the highest total loss of any Melbourne area.

Vendors who made a gross loss on Melbourne inner city sales in the December quarter in general held their properties for a shorter time than their profiteering counterparts. A loss-making vendor held their property for an average 5.6 years, while the 82.7% of profit-making sellers in the same region sold their properties after an average of 10 years of ownership.

Those who did profit made a median of $152,000 on their sale, with total gains over the quarter of $108,107,048.

It wasn't just inner city vendors who were saddled with losses in the December quarter.

In the newly-developing rural-fringe region of Melton, 11.8% of all resales resulted in a loss in that period. The loss-making properties were held for an average of 3.6 years, with a median loss of $12,000. In total, vendors lost $1,453,850 on Melton sales in the December quarter.

The Melton properties which did turn a profit were held on average for 8.5 years, and made a median profit of $85,000.

The only Melbourne local government area to have a 100% success rate in the December quarter was Murrindindi, although many would not count the area as part of Melbourne. Located in the Hume region, it includes Kinglake, Marysville, Alexandra, Buxton, Eildon, Flowerdale, Molesworth, Strath Creek, Taggerty, Yarck and Yea.

December quarter sales in Murrindindi had an average hold period of 13 years, with a median profit of $91,000.