Despite many weeks of lockdown, Melbourne houses had the highest rate of profit-making sales of the capital cities at 98.9%, up from 98.4% in the previous quarter according to the CoreLogic’s Pain and Gain Report.
Melbourne was one of two capital city markets (alongside Hobart) to see an increase in the rate of loss-making sales through the June 2021 quarter, rising 30 basis points to 5.4%.
The increase in the incidence of loss-making sales was driven by the unit sector.
The rate of loss-making unit sales rose from 12.2% in the March 2021 quarter to 13.2% in the three months to June, while profitability actually increased across the housing segment.
On the other hand, Melbourne’s property market had the highest rate of profit-making sales of the capital cities at 98.9%, up from 98.4% in the previous quarter.
The higher incidence of loss across the unit segment is also reflected in the council regions that had the highest rate of loss-making sales, which was Melbourne City Council.
Across this council region, 34.8% of resales saw a loss in the quarter, and 87.1% of these were investor-owned units.
The median loss on resales was also the largest of Melbourne council regions, at $228,500.
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