You might think that real estate prices are going up all over Australia, but that’s not always the case.
A number of property owners in regional Australia are selling at a loss, according to the latest according to the CoreLogic Pain & Gain report.
Cameron Kusher, CoreLogic’s senior data analyst, says his company’s analysis confirms that regional areas are doing it significantly tougher than capital city markets.
“Across the country’s regional areas, the analysis shows that proportion of loss-making resales is higher than those within the capital cities and trending lower in Regional NSW and fairly flat in most other areas except for Regional SA, Regional WA and Regional NT where loss-making sales are trending higher.
“The trends in regional areas are shifting with the proportion of loss-making resales trending lower in areas linked to tourism and lifestyle.
“On the other hand, housing markets linked to the resources sector are generally seeing an increase in loss-making resales after housing market conditions in many of these locations have posted a sharp correction.”
The report also showed that the longer property is held by the same owner, the better its resale value will be. Homes which sold at a loss were owned for an average of 5.3 years, while homes making a profit were owned for an average of 9.9 years. Dwellings which doubled in profit had been owned, on average, for 16.4 years.
The areas where resellers were hit the hardest include:
Mackay, Queensland (46.6 per cent sold at a loss)
Fitzroy, Queensland (35.6 per cent)
Townsville, Queensland (34 per cent)
Outback, Western Australia (32.6 per cent)
Wilde Bay, Queensland (31.9 per cent)
Outback, Northern Territory (30.6 per cent)
Cairns, Queensland (25.3 per cent)
Wheat Belt, Western Australia (24.4 per cent)
South East, Western Australia (23.2 per cent)
Warrnambool and South West, Victoria (21 per cent)
Would you consider moving to one of these regional areas? Have your say in the comments below!