16/06/2014 - 14:51

Property pain in regional WA: report

16/06/2014 - 14:51

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Property pain in regional WA: report
Around 20 per cent of the homes sold in the Wheatbelt town of Merredin in the first three months of the year sold at a loss.

More than 17 per cent of homes sold in regional Western Australia in the first three months of the year were sold at a loss, according to research released today.

The figures were revealed in RP Data’s Pain and Gain report for the March quarter, which showed just 5 per cent of properties sold in the period in the Perth metropolitan area made a loss.

In the corresponding period in 2013, 6.4 per cent of Perth homes sold for a loss.

The largest proportion of loss-making sales in WA occurred in the Wheatbelt, with nearly 20 per cent of properties sold in the quarter making a loss.

Just fewer than 50 per cent of the loss-making properties in the Wheatbelt were homes that had been held onto for five to seven years, the report said.

In Perth’s western suburbs, 12.1 per cent of properties sold in Claremont in the March quarter were sold for a loss, compared to 12.5 per cent in Cottesloe, just 2.6 per cent in Mosman Park, and zero in Peppermint Grove.

In Mandurah, 18 per cent of properties sold in the first three months of the year sold for a loss.

Nationally, 9.8 per cent of the 64,518 residential sales recorded a gross loss from the original purchase price.

RP Data said the gross value of the losses across Australia totalled $381.1 million, while for the 90 per cent of homes that sold for a profit, the total value equated to $12.2 billion.

RP Data research analyst Cameron Kusher said lifestyle regions experienced the greatest re-sale losses.

“These areas continue to show the greatest proportion of loss-making re-sales, particularly within the unit market as opposed to detached housing markets,” Mr Kusher said.

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