- Just 8.9% of Australian homes sold for a gross loss in the December quarter of 2017.
- Many suburbs reliant on the mining industry saw more than 50% of properties sell for a loss.
- Some capital city apartment markets also recorded loss-making sales of more than 50%.
It’s been very hard to lose on Australian property in recent years, especially in the capital cities.
According to data released by CoreLogic today, less than 9% of homes sold for less than what they were originally purchased for in the December quarter of last year, holding around the same levels seen earlier in the year.
While strong price growth, particularly in Sydney and Melbourne, largely explains the national trend, that’s not to say that all vendors have made a tidy profit in recent years.
Some have lost, especially in regional areas tied to the mining industry.
This table underlines that point.
From CoreLogic, it shows the Australian towns and suburbs with the highest proportion of loss-making sales for houses and units in the final three months of 2017.
The group has selected locations where there were at least 10 resales recorded during the December quarter.
“Both the list for houses and units has a strong slant towards regions of Queensland and Western Australia,” said Cameron Kusher, Research Analyst at CoreLogic.
“This is reflective of the ongoing weak housing conditions in these two states over recent years.”
It’s likely that many of these properties were purchased during Australia’s twin mining booms over the past decade, the first driven by higher prices and then secondly by increased mining sector investment.
As commodity prices and infrastructure investment in these regions has cooled, so too have housing market conditions.
While mining regions also dominate the list of loss-making unit sales, Kusher says a few capital city suburbs also feature, likely reflecting large growth in apartment supply in recent years.