PERTH property sellers’ pain continues to climb with a record-breaking 36.1 per cent of residential properties resold at a loss in the June quarter, new data shows.
Corelogic’s latest Pain and Gain report reveals losses are up from 32.8 per cent in the previous quarter, costing their owners a whopping $166.5 million collectively.
It is the highest proportion of loss-making resales in Perth since Corelogic started analysis in 1996.
The hardest hit area remained the City of Perth, where more than half of properties sold at a median reduction of $129,500.
Bayswater (47.8 per cent) and Belmont (45.3 per cent) also had a high proportion of homes selling for less than their purchase price.
Across Perth, more units sold for a loss than houses (46.9 per cent compared to 33.2 per cent).
Perth investors were more likely to incur a loss than owner-occupiers (47.9 per cent compared to 33.5 per cent).
“Clearly, any property owner will aim to make a profit from the sale of their property,” the report said.
“In a falling market owner-occupiers may be more prepared to sell at a loss if they are purchasing their next home at an equivalent or greater discount.
“Conversely, investors, because of taxation rules, would seemingly be more prepared to incur a loss because they (unlike owner-occupiers) can offset those losses against future capital gains.”
However, it was not all bad news during the quarter, with resales creating $834.9 million in profits.
In the Shire of Peppermint Grove, all properties sold for a median profit of $185,750.
Only 17.9 per cent of properties in the Town of Claremont and 21.4 per cent of properties in the City of Nedlands sold for a loss.
Longevity seemed to be the key to making a profit, with houses that sold for profit owned for a median 13.2 years and units held for 14.9 years.
Houses resold for a loss were owned for a median 6.2 years and units for 7.2 years.
Nationally, the city with the greatest seller gain was Hobart, where 98.2 per cent of properties sold at a profit while Perth’s pain was only trumped in Darwin, where 48.2 per cent of properties sold at a loss.
Regionally, WA’s north had the highest percentage of loss-making sales (50.6 per cent) followed by WA’s south (46.7 per cent).
Across the coastal areas, resale losses were the greatest in Bunbury (30.3 per cent).