Over 11 per cent of resales record loss

Over 11 per cent of resales record loss

03 January 2014 by Staff Reporter 0 comments

Of all residential property resales in the September 2013 quarter, 11.1 per cent recorded a gross loss from the original purchase price, according to RP Data’s most recent Pain and Gain report.

The percentage has fallen from 11.7 per cent at the end of the June 2013 quarter and from 13.1 per cent a year ago.

RP Data's quarterly report puts the gross value of the losses associated with these loss-making resales at $488.1 million.

Conversely, the 88.9 per cent of resales that recorded a profit grossed $12.6 billion combined.

Lifestyle markets continue to see the largest proportion of loss-making resales, particularly within the unit market, according to the report.

“Queensland’s far north has overtaken the Gold Coast to record the largest proportion of loss-making resales, with 33.9 per cent of all September quarter resales transacting at a price lower than that which the home was purchased for,” it said.

In contrast, regional areas often associated with the commodities sector and most capital cities have recorded very low rates of loss-making resales, with north west and south west Queensland, Sydney and Perth recording fewer than five per cent of resales at a loss.

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