Melbourne and Brisbane features in unit resales losses
Losses on the resale value of units, especially in regional areas, cast light on the ongoing debate over the risks to lenders from the escalating supply of multi-unit developments.CoreLogic's latest Pain and Gain report, for the September 2016 quarter, said that regional markets are "generally showing the largest proportion of loss-making re-sales" on units.Some capital cities are also prominent among resales losses."In Melbourne and Brisbane the proportion of unit stock sold at a loss over the quarter was more than double that of houses and it was close to double in Perth," CoreLogic said.Across major capital cities, the proportion of houses reselling at a loss over the September 2016 quarter was recorded at 2.5 per cent in Sydney, 2.1 per cent in Melbourne, 4.8 per cent in Brisbane and 17.3 per cent in Perth. "Across the combined capital cities, houses were almost half as likely to be resold at a loss compared to units over the September 2016 quarter, with the figures recorded at 5.6 per cent and 10.2 per cent respectively," CoreLogic said.