Almost four in ten sellers in one n suburb lost money when they sold their home despite a housing crisis that has seen a double-digit surge in property values.
While most Aussies make money when they sell up, home owners in central Melbourne haven’t been so lucky.
House and apartment owners in City of Melbourne were the hardest hit in , with 38.9 per cent of homes there selling for a loss of $54,500 on average, new CoreLogic data revealed.
Across the rest of the country, just one in 16 homes sold for a loss, the data revealed, with houses in capital cities nationwide rising by 10.6 per cent.
But in the Port of Melbourne, median house prices price fell by 0.1 per cent in the year March to $1.67million. Apartment values in the same suburb also plunged 1.3 per cent to $798,563.
However they were the exceptions in the latest CoreLogic Pain and Gain report which showed that overall almost 95 per cent of homes sold for a profit – the highest level since July 2010.
The figures revealed home owners typically sold up for a profit eight years and 10 months after initially moving in, with houses going up in value more than units.
‘Despite the fact that house values tend to have greater price falls during downswings, they also generally have larger upswings in value,’ CoreLogic said.
‘Houses have always maintained a premium because of the value of land, and development opportunity, as well as a relatively high volume of units being constructed through the 2010s.’
But it was a different story in the City of Darwin where a third of homes sold at loss – with owners typically losing $70,000 on the price the originally paid for the property.
In Larrakeyah, unit values fell by 1.6 per cent during the past year to $447,117.
House values in the Darwin suburb of Wulagi fell by 0.9 per cent to $532,677 – even lower than Darwin’s median price of $584,538, making it the most affordable city in the country.
In Sydney, Parramatta was also a poor performer with more than a quarter of homes in this council area selling at a loss, with the typical seller losing $49,750.
Houses in the City of Parramatta area managed to keep their value during the past year but south-west Sydney had suburbs where prices went backwards.
At Austral, they declined by 1.8 per cent to $920,159, putting it further below greater Sydney’s median house price of $1.4million, but just one in eight homes in the Liverpool council area sold at a loss.
CITY OF MELBOURNE: 38.9 per cent selling at loss
This included Port Melbourne where house prices have fallen by 0.1 per cent during year as unit values dived by 1.3 per cent
CITY OF DARWIN: 33.6 per cent selling at loss
This included Larrakeyah where unit values fell 1.6 per cent and Wulagi where house prices slipped 0.9 per cent
CITY OF PARRAMATTA: 25.3 per cent selling at loss
This included Sydney Olympic Park declining by 0.1 per cent