7.6% of Sydney resales saw a loss: CoreLogic Pain & Gain
Some 7.6 per cent of resales saw a nominal loss across Sydney, according to CoreLogic's Pain and Gain Report March Quarter 2020.
Alongside Hobart, Sydney was the only capital city to see a decline in 95 per cent the portion of loss making sales, down from 7.9 per cent in the previous quarter.
Source: CoreLogic Pain and Gain March Quarter 2020 report.
Across the council regions of Sydney, the highest portion of loss making sales were across Burwood (22.4 per cent), Parramatta (15.9 per cent), and Ryde and Strathfield (13.5 per cent). The Burwood council region had a high portion of loss marking sales off a 75 per cent relatively low base. There were about 18 loss making sales observed across the region, most of them units with a relatively low hold period.
Higher levels of profitability tended to concentrate in higher socio-economic areas of Sydney, such as North Sydney, where profit making transactions made up 98.0 per cent of resales in the quarter.
The Blue Mountains also proved to be the second most profitable region for property sales in the March quarter, with 96.9 per cent of sales seeing an increase in the nominal sale price. However, the gain in the region was relatively low, at $287,250.
Increased profitability in resales was aided by a strong uplift in dwelling values over the quarter. March saw Sydney dwelling values increase 3.9 per cent. Importantly, the decline in demand resulting from responses to the pandemic has since seen values fall - 0.8 per cent over June, which will likely manifest in more loss making sales in the coming months.
Source: CoreLogic Pain and Gain March Quarter 2020 report.
