Pain for vendors as more properties sell at a loss

The number of properties selling at a loss is on the rise in Australia, new research released today reveals.

CoreLogic’s Pain and Gain report for June shows that Sydney had the highest levels of homes selling at a loss across the capital cities, reaching 10.7 percent over the March quarter. It’s the highest level since the August quarter of 2009. Melbourne, Darwin and Perth also saw increases in the numbers of properties selling at a loss.

The report noted that there has also been a rise in the share of sales of properties held for less than two years, with an increase of 8.4 percent over the March quarter, up from 6.6 percent over the same period last year.

Report author and CoreLogic head of research Eliza Owen said such behaviour was historically a little unusual.

“Such short selling times that involve sellers incurring a loss may be considered unusual, because hold periods typically increase during housing value downturns, as sellers try to avoid making a loss,” Ms Owen said.
“The implication may be that some sellers are choosing to incur a loss from resale in order to avoid particularly high mortgage repayments in the current rate-hiking environment.”

The pain has been felt more in the unit market, which has experienced a faster deterioration in profitability than the housing market over the past year. The report speculated that the performance of the unit market may be an indication that investors are struggling to service their mortgages. In this environment, it may also be an indication that sellers are willing to offload their property for less rather than face higher mortgage payments.

Ms Owen said residential resale gains remained significant in overall terms. While the largest capitals had experienced the greatest losses, there were capital cities still experiencing gains. In Hobart, 99 percent of resales made a nominal gain, while 98.1 percent of resales in Canberra recorded a profit. Brisbane also saw an increase over the quarter, with 95.7 percent of resales experiencing a gain.

Former Aussie Rules player Jeff Chapman’s dream beach house, which has had its praises sung by The Independent in the UK, is back on the market with a revised – and more competitive – price guide.

The contemporary pavilion-style residence Alinghi, created by celebrated architect James Grose, was voted one of the top five beach houses in the world by the British newspaper and has been operating as a luxury holiday rental earning up to $7000 a week.

The one-time Melbourne forward and founder of Bennelong Funds Management, and his wife Carena Shankar, listed the five-bedroom getaway back in mid 2024 with hopes of about $8 million. The prestige property is now back with new agent Pauline Karatau of Ray White New Farm and the amended guide now sits at $6.5 million.

As part of the private 5ha Rocky Point estate, at the southern end of the Great Barrier Reef overlooking Honeymoon Bay, the glamorous holiday home shares not only a private beach with just four other neighbours, but also a 30m saltwater pool, a full-size tennis court, a beach cabana with barbecue facilities and a full-time live-in caretaker on site.

Alinghi seemingly floats against the cliffs of North Queensland’s Capricorn Coast consisting of two pavilions and shallow reflections pools for ultimate serenity. Residence number 5 is home to a two-storey main pavilion with large living spaces spilling onto semi-enclosed areas framing enviable ocean views. Upstairs there are four bedrooms, including two with ensuites. The second pavilion is a private retreat housing the main bedroom suite with an additional study or wellness space.

Crafted by Grose to leave minimal impact on its natural environment, the house features external materials sourced locally including rich cedar, plus glass and Travertine stone specifically chosen to blend and weather with the landscape over time.

The low maintenance property is also relatively self sufficient thanks to water tanks collecting the region’s abundant rainfall. Despite it’s northern Queensland address air-conditioning is an after-thought due to the clever cross-ventilation design principles and deliberate orientation capturing ocean breezes that flow through the large footprint.

Alinghi’s external lightning has also been carefully designed to be low voltage with minimum impact upon the local wildlife including wallabies, echidnas, goannas, turtles and even a diverse range of native birds. From the private terraces throughout winter, homeowners can also track the migratory whales.

Alinghi is a 90-minute drive away from Agnes Waters and its sister town of 1770 (also known as Seventeen Seventy). It is approximately 120kms from Bundaberg, which is home to a well-serviced domestic airport.

Alinghi is listed for sale with a price guide of $6.5 million via Ray White New Farm agent Pauline Karatau on 0418 733 773.

Pain for vendors as more properties sell at a loss

The real estate reckoning continues as homeowners and investors reassess their assets