WA has most loss-making resales


WA has most loss-making resales

Posted on Thursday, January 15 2015 at 9:19 AM

Regional Western Australia surpassed regional Queensland for recording the highest proportion of loss-making resales in the September quarter 2014, according to CoreLogic RP Data.

In its latest Pain Gain report, the company says
regional Western Australia recorded 22.5 per cent of all resales at a loss
while regional Queensland followed at 22 per cent.

Cameron Kusher,
research analyst at CoreLogic RP Data, says the results are connected to slower
activity in mining.

“Recent data
highlights the growing weakness in markets linked to the mining and resources
sector where values are generally falling.”

Based on the report
findings, loss-making resales trended lower in Sydney, Melbourne, Brisbane,
Adelaide and Hobart.

In Perth, Darwin and
Canberra an upward trend was recorded.

report says nationally, the proportion of
loss-making resales has peaked and is slowly trending lower.

“These trends are reflective of overall market conditions where values
are still trending higher in most cities, but conditions appear to be slowing
quite rapidly in Perth, Darwin and Canberra.”

According to the report, 9.3 per cent of all
home resales recorded a gross loss compared to their previous purchase price
during the quarter.

“The figure increased slightly from nine per
cent over the June 2014 quarter, but was much lower than the 11 per cent
recorded over the September 2013 quarter.”

The total value of these loss-making resales
over the period was $383 million and the average loss was $62,246.

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