The Australian locations where homeowners are selling at a loss
The portion of properties sold at a loss within three years of ownership has almost doubled in one year
2 min
Loss-making resales of homes and investment properties held for less than three years are on the rise, indicating more stress in the marketplace amid high interest rates and the cost-of-living crisis. CoreLogic data shows that of the 86,000 resales during the third quarter of 2023, 6.6 percent were sold at a loss after less than three years of ownership. This is up from 3.6 percent in the September quarter of 2022 and represents a 10-year high, according to CoreLogic’s head of research, Eliza Owen.
Properties held for three years or less represented one in five of all loss-making resales, according to the report. These types of sales were seen in many markets across the country. However, the areas recording the highest portion of these sales were Melbourne–Inner at 4.1 percent, Melbourne–West at 3.7 percent and Sydney’s Central Coast at 3.6 percent. The median loss for these resales was $30,000.
Most of the loss-making resales among properties held for less than three years were houses, at 64.8 percent. Ms Owen said this was quite a different trend to all loss-making resales across all tenure periods. On that broader basis, more of the overall loss-making resales were apartments at 70.9 percent.
It is a commonly held view among property experts that real estate must be held over the long term to achieve strong capital growth. This is partly because property prices typically move in cycles that can take several years to complete. Property is also an asset class that involves high entry and exit costs such as stamp duty, legal fees, marketing costs and agents’ commissions. This makes selling after only short periods of ownership undesirable, indicating that those who are choosing to do this are likely to be experiencing financial stress.
During the second half of 2023, thousands of mortgages rolled over from fixed periods of two or three years at interest rates below 2 percent or 3 percent to variable rates of above 5 percent or 6 percent. Some of these sales may reflect the ‘mortgage cliff’ effect of this change. Looking ahead, Ms Owen pointed out that the Reserve Bank of Australia is forecasting unemployment to rise to 4.2% by the end of 2024 and “this will test serviceability, and may lead to an increase in motivated selling for mortgagors with high debt levels and low savings buffers”.
Ms Owen also emphasises that short-term loss-making resales make up only a small portion of the Australian housing market and this was not expected to change. “This is ultimately a small share of mortgagors, so the portion of short–term resales is not expected to grow substantially from where it is now. Ongoing increases in home values nationally should contain the rate of loss-making short–term resales, though capital growth conditions were looking weaker across Sydney and Melbourne to the end of [2023],” she said.
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Mirvac’s 45-level Trielle has topped out at Yarra’s Edge, pairing riverfront apartments with wellness facilities, private dining and resident services.
3 min
Mirvac has topped out Trielle at Melbourne’s Yarra’s Edge, with more than 70 per cent of the riverfront development sold and approximately 80 per cent of purchasers intending to make their apartment a home.
The figures, released on September 22, point to an owner-occupier audience for one of the precinct’s final residential towers. Mirvac began developing Yarra’s Edge in 2003, and its latest addition occupies one of the remaining absolute riverfront sites.
Mirvac CEO of Development Stuart Penklis said existing residents were among those moving up within the neighbourhood.
“Many purchasers already have a connection to Yarra’s Edge,” Mr Penklis said, describing buyers whose changing needs were encouraging an upgrade within the precinct.
“As one of the final residential towers within Yarra’s Edge, Trielle represents the culmination of more than two decades of creating one of Melbourne’s most established and sought-after waterfront communities,” Penklis said.
“Positioned on the Collins Street axis with absolute river frontage, Trielle offers residents a rare opportunity to enjoy sweeping views across the Yarra River, Melbourne skyline and Port Phillip Bay, while remaining seamlessly connected to the CBD. With Trielle now more than 70 per cent sold, we’re continuing to see strong demand from buyers seeking quality homes in established locations.”
The developer also flagged a penthouse and sub-penthouse collection with larger layouts, premium finishes and broad outlooks. The planned wellness centrepiece, The Oasis, encompasses a 900-square-metre elevated urban rainforest.
Mirvac General Manager Residential Development Victoria Elysa Anderson said Trielle had resonated strongly with buyers seeking a rare lifestyle offering in Melbourne.
“Opportunities to secure a new luxury residence on a riverfront site of this calibre are incredibly rare, particularly within a community like Yarra’s Edge,” Anderson said.
“What makes Trielle unique is the combination of exceptional views, world-class residential facilities and the lifestyle that already exists around it. Residents are buying into a mature waterfront community with parks, promenades, dining, wellness and strong community connections already in place.”
The 45-level tower brings a substantial new presence to that waterfront. Its residential offering spans one-, two-, three- and four-bedroom apartments, with Signature, Prestige and Sub-Penthouse collections accommodating different household sizes. The north-facing position connects the apartments visually to the river and city beyond.
Seven storeys above the promenade, the planned Oasis combines planting and a running stream with a Scandinavian-inspired wellness club developed with spa specialist Naomi Gregory. Facilities include a 25-metre lap pool, hot magnesium pool, sauna, hydrotherapy, a gym, yoga and Pilates room, and treatment spaces.
The amenity extends beyond exercise. Residents will have access to The Biblioteca library and workspaces, ground-floor work pods, and The Salone piano lounge. A private Chef’s Table dining room offers a setting for larger gatherings, while a cinema, games room and sports lounge broaden the entertaining options. Concierge services and a dog-wash area support everyday routines.
Trielle comprises a collection of one, two, three and four-bedroom residences. Reflecting strong demand from owner occupiers, approximately 80 per cent of purchasers to date intend to live in their homes, highlighting the project’s appeal to those seeking a long-term waterfront lifestyle.
Mirvac has recently delivered The Albertine, a premium apartment development on the edge of Melbourne’s CBD, and is nearing completion of Prince & Parade in Brunswick, further strengthening its portfolio of thoughtfully designed apartment communities in some of Melbourne’s most sought-after urban locations.
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