{"id":38459,"date":"2022-05-08T10:20:22","date_gmt":"2022-05-07T22:20:22","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=38459"},"modified":"2022-05-08T10:20:22","modified_gmt":"2022-05-07T22:20:22","slug":"surprising-city-where-1-in-3-homes-sold-at-loss","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/surprising-city-where-1-in-3-homes-sold-at-loss\/","title":{"rendered":"Surprising city where 1 in 3 homes sold at loss"},"content":{"rendered":"

PHOTO: Australian property market is in a corrective phase.<\/strong><\/p>\n

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Almost one in three properties in the City of Melbourne sold at a loss in December, according to new property market figures.<\/p>\n<\/div>\n

Property analysis firm CoreLogic has released its latest\u00a0Pain and Gain Report<\/i>, revealing which percentage of all resales in different local government areas made a loss or profit in the December quarter.<\/p>\n

In the Melbourne city local government area 32.3 per cent of properties sold at a loss, followed by the Melbourne suburbs of Stonnington at 13.6 per cent, Yarra at 10.7 per cent and Boroondara at 10.3 per cent.<\/p>\n

In contrast only 5.6 per cent of properties sold at a loss in the City of Sydney.<\/p>\n

The local government areas in Sydney which had the highest proportion of sales that sold at a loss were Parramatta (13.3 per cent), Strathfield (13.1 per cent), Ryde (11.6 per cent) and Botany Bay (11.1 per cent).<\/p>\n

What is behind the losses in Melbourne?<\/b><\/span><\/p>\n

The medium loss in the City of Melbourne was $60,000 and the total value lost was $13,800,749.<\/p>\n

The losses can largely be attributed to apartments.<\/p>\n

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The losses in property sales in Melbourne\u2019s city can be attributed to apartments, which have has prices affected by supply and Covid. Picture: David Crosling<\/strong><\/em><\/div>\n

The vast majority of loss-making sales (about 93 per cent) across Melbourne were units, and were concentrated in the City of Melbourne, Stonnington and Port Phillip, the report said.<\/p>\n

Independent analyst Angie Zigomanis, from property advisory firm Charter Keck Cramer, told\u00a0Domain<\/a><\/i>\u00a0apartments had \u201clagged behind\u201d houses in the property market price boom.<\/p>\n

\u201cMarkets that have been most exposed to overseas migration, and the drop in overseas migration, have struggled the most in tenant occupancy, rental growth and therefore pricing,\u201d he said.<\/p>\n

He also added supply had affected prices in Melbourne\u2019s CBD with new buildings going up in recent years \u2013 calling that and Covid a \u201cdouble whammy\u201d.<\/p>\n

Across Melbourne, including all local government areas, house resales actually had the highest rate of profitability across the greater capital city house markets.<\/p>\n

Out of all resales, 96.1 per cent in the December quarter made a nominal gain. That was higher than in the previous quarter (95.9 per cent) and higher than the December quarter of the previous year (95.2 per cent).<\/p>\n

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Of the 133,000 properties sold nationally, 94.8 per cent made a profit. Picture: iStock<\/strong><\/em><\/div>\n

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