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Almost half of all homes sold in one major Australian property market are now changing hands at a loss, with new figures revealing the suburbs where vendors are being left tens of thousands of dollars out of pocket.
asserted
vendors → see → pocket
New Cotality figures show 47 per cent of resales in Melbourne's CBD sold at a loss in the June quarter, while Sydney's Parramatta recorded a loss-making rate of 23 per cent, making them among the country's worst-performing property markets.
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them → show → markets
Apartment owners in Sydney and Melbourne were among the biggest losers with nearly 40 per cent of the value of all unit resale losses across Australia concentrated in just five LGAs: Melbourne CBD, Parramatta, Stonnington, Port Phillip and Sydney CBD.
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cent → concentrate → LGAs
Cotality Head of Research Gerard Burg said profitability is still 'exceptionally high' by historical standards, however, the housing downturn was beginning to hit resale profits, particularly for more recent buyers.
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downturn → say → buyers
'Most sellers are still benefiting from the significant value growth accumulated over the past five years, which is providing considerable protection against the early stages of the downturn,' he said.
'
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he → benefit → downturn
With home values falling across more markets, that buffer will become increasingly important in determining resale outcomes.'
Mr Burg said buyers were facing mounting financial pressures from multiple fronts and warned further declines in home values could lead to more sellers being forced to take a loss.
uncertain
sellers → fall → loss
'Affordability and mortgage serviceability were already constraining buyers before the downturn, with three interest rate increases in the first half of 2026, higher cost-of-living pressures, weaker consumer sentiment and changes affecting property investors adding further pressure on housing demand,' he said.
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he → constrain → demand
Cotality researcher Gerard Burg (pictured) said profitibility is still 'exceptionally high' however the housing downturn was beginning to hit resale profits, particularly for more recent buyers
Apartments in Parramatta (pictured) are among the country's worst-performing property markets
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Apartments → picture → markets
Homebuyers are facing mounting financial pressures from multiple fronts amid warnings further declines in home values could lead to more sellers being forced to take a loss
'
uncertain
sellers → face → loss
AMP chief economist, Shane Oliver, said the Reserve Bank is expected to hike interest rates at its next meeting later this month, however, a second hike in November was unlikely as it risked sending more mortgage holders over the edge.
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it → say → edge
'A second hike in say November would probably be overkill as it would risk tipping many households with a mortgage over the edge, risking in turn a crash in property prices, much higher unemployment and a deep recession,' he said.
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he → risk → prices
'Interestingly the money market now has nearly three hikes priced in by October next year – but that looks like an overreaction to the surge in oil prices.
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that → have → prices
The warning comes amid starkly different fortunes across the property market.
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warning → come → market
While apartment owners in parts of Sydney and Melbourne are being forced to wear losses, sellers in Western Australia continue to cash in on the state's housing boom.
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sellers → force → boom
Three WA local government areas dominated the country's most profitable resale markets, pushing traditional lifestyle hotspots such as Kiama on NSW's South Coast and Noosa on Queensland's Sunshine Coast down the rankings.
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areas → dominate → rankings
Chittering, north-east of Perth, topped the nation with a median nominal gain of $872,500 in the June quarter after dwelling values soared more than 180 per cent from their pre-pandemic lows in 2019.
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values → top → 2019
This home currently on the market in Chittering should turn the owners a tidy profit after it was purchased for $630,000 in 2017 and is now listed in the mid-$1million range
Cambridge in Perth's inner west ranked second with a median gain of $740,000, followed by Joondalup in the city's north at $732,500.
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Cambridge → turn → 732,500
Kiama ranked fourth with a median gain of $725,000, while Noosa placed sixth at $711,000.
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Noosa → rank → 711,000
Houses continued to leave units in their wake when it came to resale returns with house sellers pocketing a median gain of $435,500, compared with $251,000 for unit owners.
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sellers → continue → owners
Buyer's agent Glenn Price said there were still many vendors thinking their property was worth more than it actually is.
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it → say → ?
'They're still stuck in 2023 mode, when properties were selling like hotcakes,' he told the Daily Mail.
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he → stick → Mail
'That horse has bolted.
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horse → bolt → ?
The market is what it is, and a property is only worth what a buyer is prepared to pay for it in 2026.
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buyer → pay → 2026
'
Mr Price said many vendors forgot one of the basic rules of selling in a downturn.
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vendors → say → downturn
Whatever you believe you've lost on the sale can often be clawed back when you purchase the next property,' he said.
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he → believe → property
Buyer's agent Glenn Price (pictured) said there were still many vendors thinking their property was worth more than it actually is
'
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it → picture → ?
The agents I'm speaking with every week are telling me the same thing.
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I → speak → thing
Fair offers are coming in, agents are advising their vendors to accept them, and plenty of vendors are refusing because they still believe something better is coming.'
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something → come → vendors
Mr Price said once a property sits online for 100 days or more it becomes 'cold stock' and was unlikely to attract top dollar.
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it → say → dollar
'Once a property has been sitting that long, I'm throwing in a lowball offer to find out if the vendor has become desperate,' he said.
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he → sit → offer
I didn't really want it, but if it's cheap enough, I'll buy it and see what it tastes like.
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it → want → what
Brisbane retained its position as Australia's most profitable capital city in the June quarter, a title it has held since June 2024, with 99.8 per cent of resales delivering a gain and sellers pocketing a median profit of $525,000.
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sellers → retain → 525,000
Adelaide ranked second for overall profitability at 98.9 per cent, while its median gain increased from $472,000 in March to a record $480,400.
Perth followed, with 98.8 per cent of resales recording a profit and a median gain of $470,000.
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cent → rank → 470,000
Melbourne recorded the lowest share of profitable resales among the capitals at 89 per cent.
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Melbourne → record → cent