Regional Western Australia has overtaken regional Queensland as the area with the highest proportion of loss-making property resales.
According to research by CoreLogic RP Data, 22.5 per cent of all properties resold in regional WA during the September 2014 quarter were sold at a loss, while regional Queensland recorded a figure of 22.0 per cent.
CoreLogic RP Data’s senior research analyst, Cameron Kusher, said that while there is an improvement in buyer demand and dwelling values, the weakness in these two regions is reflective of the recent underperformance of coastal markets.
“Recent data highlights the growing weakness in markets linked to the mining and resources sector where values are generally falling,” he said.
Regional Tasmania recorded loss-making resales for 19.7 per cent of its property over the September quarter, while regional South Australia recorded 16.2 per cent.
Regional NSW, regional Northern Territory and regional Victoria all recorded single-digit proportions of property resold at a loss – at 9.9 per cent, 9.8 per cent and 9.5 per cent respectively.
The research showed that a majority of Australia’s capital cities are faring much better when it comes to property resales.
Sydney recorded the lowest proportion of loss-making resales at just 2.6 per cent over the September quarter.
Perth recorded loss-making resales for 6.0 per cent of its property, while Melbourne recorded 6.5 per cent.
Adelaide was the next lowest at 9.5 per cent, while 9.6 per cent of Darwin’s property sold for less than the initial purchase price.
Brisbane and Hobart were the only two capitals to record double-digit proportions of property resold at a loss – at 11.0 per cent and 15.8 per cent respectively.