Melbourne was one of two capital city markets (alongside Hobart) to see an increase in the rate of lossmaking 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.

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.

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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You may also be interested in reading:

Pain and Gain Report September 2021: Sydney
Pain and Gain Report September 2021: Brisbane

Eliza Owen
About Eliza Owen
Eliza is head Of Residential Research Australia for Corelogic and a respected property market commentator. Eliza holds a first class honours degree in economics from the University of Sydney
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