Residential resales down 28%, CoreLogic says – impact to flow onto village sales

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More worrying news for retirement living operators.

The percentage of homeowners who sold at a loss increased in most of the capital cities in the June quarter despite the property market holding relatively steady according to CoreLogic’s quarterly Pain and Gain report.

The report – which looks at gross profit and loss at resale – shows the proportion of sales being finalised at a loss climbed in six of the eight capital city markets last quarter.

Overall, resales were down 28.2% from 72,500 transactions in the first quarter of the year to 52,000 transactions nationally.

Of those, the number of sales making a loss increased 50 basis points to 12.8% as the first wave of lockdown restrictions and the corresponding falls in employment and GDP hit home.

Worst off were Darwin and Perth were 51.2% and 36.2% of home sales were at a loss respectively.

Unsurprisingly given the weaker rental market in units nationally, only 79.3% of unit owners sold for a profit compared to 89.6% of home owners. Investors also recorded higher losses than owner-occupiers.

The numbers are bad news for village operators with the number of retirees holding off on selling in order to achieve a better price for the family home likely to increase.

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About Author

Lauren is the Editor at DCM Group and has guided its range of media including The Weekly SOURCE, The Daily RESOURCE and The Donaldson Sisters since 2016. With 13 years’ experience as a journalist, editor and commentator, Lauren is the only journalist to have attended every session of the Royal Commission into Aged Care Quality and Safety, producing 300 issues of the subscriber-only The Daily COMMISSION which offers exclusive insights and analysis of the issues surrounding the Royal Commission and the aged care sector.