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Australian Homes Resold at a Loss Highest Since 2013

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While the majority of properties that resold over the March quarter sold at a profit, data shows 12.1 per cent of resales across Australia transacted at a loss, representing a six-year high.

Corelogic data shows this portion is the highest share of loss-making sales since the March 2013 quarter.

“Australia had a total of $486.8 million in realised gross losses from resales over the March quarter,” CoreLogic's research analyst Cameron Kusher said.

“Every capital city saw an increase in the share of loss-making resales for the period compared to the previous quarter.”

For the combined capital cities, the total value of resales made at a profit was $10.156 billion. Based on these figures, sales for the combined capital cities represent 70.9 per cent of the total value of all profits for the March quarter.

In comparison, the total value of losses across the capital cities was $378.3 million for the quarter, 64.5 per cent of the total value of losses nationally.

Sydney regions with highest portion of loss: March quarter

Sydney council areas with highest portion of loss% of salesTotal value of loss
Strathfield20%-$1,902,000
Parramatta18.8%-$7,051,850
Ryde15.7%-$3,764,000
Lane Cove15.2%-$1,981,300
Canterbury-Bankstown13.8%-$7,686,184
Botany Bay13.7%-$1,172,800
Liverpool12.6%-$4,712,467

CoreLogic

The resale of properties made at a profit was worth $3.479 billion for the first quarter in Sydney, accounting for 24.3 per cent of all national resales at a profit.

The total value of resales at a loss was recorded at $116.5 million, reflecting 19.9 per cent of the total value of national home sales at a loss.

Corelogic shows the areas with the greatest share of loss were recorded in Strathfield, Parramatta and Ryde.

Melbourne regions with highest portion of loss: March quarter

Melbourne council areas with highest portion of loss% of salesTotal value of sales
Melbourne31.8%-$5,463,024
Stonnington24%-$4,840,494
Yarra18.5%-$2,077,500
Port Phillip17%-$3,221,637
Monee Valley13.6%-$1,767,240
Boroondara12.3%-$6,611,500
Glen Eira12.1%-$1,389,125

CoreLogic

Resales of Melbourne properties generated $3.363 billion worth of profits and $44.8 million in losses for the March quarter.

Melbourne generated 23.5 per cent of total resale profits nationally over the quarter, with no resales loss in Macedon Ranges and a small proportion recorded in Banyule, Melton and Moorabool.

Sales made at a loss in Melbourne were 7.6 per cent.

The council regions with the highest proportion properties sold at a loss located in Melbourne, Stonnington and Yarra.

Brisbane regions with highest portion of loss: March quarter

Brisbane council areas with highest portion of loss% of all salesTotal value of loss
Brisbane14.10%-$25,038,247
Somerset10.9%-$339,500
Logan10.1%-$2,583,700
Moreton Bay9.1%-$5,822,049
Lockyer Valley8.6%-$239,000
Redland8.1%-$1,494,900
Ipswich7.8%-$1,390,428

CoreLogic

“In Brisbane resale losses haven’t been this high since November 2013,” Kusher said.

The Brisbane regions with the highest proportion of resale losses were Brisbane, Somerset and Logan.

Brisbane generated 9.1 per cent of the total value of resale profits nationally for the March quarter and 6.3 per cent of the losses.

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Article originally posted at: https://theurbandeveloper.com/articles/the-number-of-australian-homes-resold-at-a-loss-highest-since-2013