Core Logic Pain & Gain Report

PAIN AND GAIN
Melbourne

Melbourne was the only capital city to see a decline in the rate of profit-making sales through the September quarter, down to 90.1% from 90.2% in the June quarter. Despite the Melbourne market seeing six consecutive months of decline to the end of September, profitability has held for just over 90% of sellers in the city.

The rate of loss-making sales in Melbourne was once again highest in the City of Melbourne LGA, with 43.7% of homes resold recording a loss, up from 43.2% in the previous quarter. As noted in previous reports, the inner Melbourne unit market has been subject to elevated levels of supply, but has not seen a commensurate lift in demand. This is compounded by changes in the finance landscape over time, including some of these markets being flagged for higher deposit requirements from lenders.

The Melbourne market entered an eighth-consecutive month of decline in November, indicating there may be a further deterioration in the profit-making sales rate in the December Pain and Gain results.

Source: www.corelogic.com.au