More loss, less profit for short term property holders
Property owners who bought within the past two years cut their losses as the heat comes out of the market and interest rates bite
2 min
The number of Australian properties selling at a loss is on the increase, new data from CoreLogic has shown.
The CoreLogic Pain & Gain report for the June quarter revealed sales of properties sold within two years of purchase showed a significant rise in the number of those selling at a loss, up 9.7 percent compared with 2.7 percent a year ago.
CoreLogic Head of Research and report author Eliza Owen said the results reflect the turbulence of the past two years, with the market impacted by COVID and increases in the cash rate.
“Two years is a significant time period because we are two years on from the height of pandemic-related lockdowns, low interest rates, and have just passed the peak of transitions from low fixed rates to high variable rates,” Ms Owen said.
“The portion of homes sold within just two years increased by one percentage point to 8.5 percent over the past year, however the portion of these short-term resales where the seller incurred a loss has increased more substantially, from just 2.7 percent a year ago to 9.7 percent in the June quarter.
“This suggests more sellers are willing to incur a loss at the moment, which could in part be the result of high interest rates.”
The losses were felt in far greater numbers by owner/occupiers, who made up 72.1 percent of short term resales, compared with 27.9 percent for investors. Vendors in regional areas were also more likely to be feeling the pain, an indication that the treechange love affair is over for some.
“Around one in 10 regional Australian property sales were held for only up to two years,” Ms Owen said.
“A further breakdown of this data by SA4 regions shows some of the highest concentrations of short-term resales were in parts of regional Queensland, including Wide Bay (17.3 percent), the Gold Coast (15.2 percent) and the Darling Downs – Maranoa region (14.4 percent). This suggests that people might be selling up after trying to live, or invest, in more remote regional or lifestyle areas.”
In good news for potential investors, Ms Owen said the outlook for home values this year was positive.
“The rate of profit-making sales tends to follow capital growth trends,” she said. “With home values continuing to rise through July and August, we estimate the level of profitability from resales will also move higher through the September quarter.”
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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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