A new report has revealed that four of the top five regions for loss making resales of residential property over the March quarter were in Queensland.
According to CoreLogic RP Data’s quarterly Pain & Gain Report, which looks at where profits from properties were made and where properties sold for less than their initial purchase price, 9.1% of home sales over the March quarter recorded a loss.
This figure was slightly higher than the 8.6% recorded at the end of 2014, but lower than the 9.6% over the same quarter last year.
The combined resale loss total over the March quarter was $416.6 million, with an average loss amount of $69,468
The first four of the top five regions with the highest proportion of loss making resales were Queensland’s Mackay (45.5%), Townsville
(30.7%), Wide Bay (28.3%) and Fitzroy (26.5%), while Western Australia’s Outback (23.9%) came in fifth.
On the flip-side, the lowest proportion of loss-making resales were recorded in Sydney (NSW) (2.4%), Illawarra (NSW) (2.5%), Toowoomba (Qld) (2.7%), Newcastle
and Lake Macquarie (NSW) (3.4%) and Bendigo
According to the report 30.7% of homes resold for more than double their previous purchase price.
Across those homes which sold at a profit, the total value of this profit was recorded at $13.8 billion with the average gross profit recorded at $230,633.
The data also shows that holding on to a property for lengthy period might be the way to avoid a loss; homes that resold at a loss had an average length of ownership of 6 years while all sales recording a gross profit the average length of ownership was recorded at 10 years
Homes which sold for more than double their previous purchase price were owned for an average of 16.8 years.
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