The most recent edition of Corelogic’s Pain and Gain report analyses approximately property re-sale events over the June 2020 quarter to see who’s made money on their property sale and who has not.
Over the June quarter, the portion of loss making resales across Melbourne was 6.9%, up from 6.6% in the March quarter.
This is lower than the recent peak in June 2019, which was 8.2%.
The year-on-year reduction in the incidence of loss making resales coincides with the start of a rebound in the Melbourne dwelling market, which saw values sitting 10.2% higher in June 2020.
There was a strong divergence in loss making sales rates between houses and units.
15.4% of unit resales made a loss in the June quarter, compared with just 2.9% of houses.
This is also reflected in the housing stock across Melbourne regions with the highest portions of loss making sales.
The Melbourne council region saw nearly 40% of resales make a loss.
Around 80% of loss making sales were investor owned units.
Higher profitability was seen in regions on the outskirts of the Greater Melbourne region.
These include Hobsons Bay, Melton and the Mornington Peninsula, where around 98% or more properties sold for a profit, with the median profit averaging $328,000 in the June quarter.
This demonstrates the diversity of performance in Greater Melbourne, which amid the pandemic is dependent on the type of available stock, the composition of the population, and the composition of the labour force.
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