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Property owners were more likely to sell for a loss in the September quarter than three or six months earlier, new data shows, as housing prices weaken.
Among those who lost money, the median loss widened to $40,000, compared to $33,500 in the June quarter, CoreLogic’s Pain and Gain Report for the September quarter found.
One in five property sales in the Parramatta area made a loss in the September quarter.Credit:Ben Rushton
Loss-making sales were concentrated in apartment-heavy neighbourhoods, where substantial amounts of new dwellings have been built over recent years.
In Sydney, at least one in five homes sold at a loss in the Strathfield and Parramatta council areas over the quarter, followed by Ryde (19.8 per cent) and Botany Bay (18.5 per cent).
In Melbourne, loss-making sales in the Melbourne city council area hit 39 per cent, followed by Stonnington (27.8 per cent) where new apartment towers have been built close to public transport.
Brisbane city council recorded 6.8 per cent of sales at a loss, Perth city council 53.4 per cent and Adelaide city council 19 per cent.
It follows a recent Productivity Commission report that said housing would be more affordable if more homes were built.
Experts warn of a tick-up in loss-making sales next year as mortgage repayments rise, especially for recent borrowers, although the increase is likely to be moderate as many owners will be able to hang onto their homes.
The research found 93.3 per cent of residential sales in the September quarter made a paper profit, down from 93.9 per cent in the June quarter and the recent high point of 94.2 per cent in the three months to May.
CoreLogic head of Australian research Eliza Owen said this year’s fall in housing values has increased the chance a property seller