Top Suburbs Where Homeowners Are Selling Their Properties at a Loss
In recent property market analysis, data reveals significant insights into where homeowners are facing losses from sales. This trend is particularly evident in Melbourne, which has shown a substantial number of units being sold at a loss.
Key Findings on Home Selling Losses
Approximately 80.5% of unit sellers in Melbourne experienced financial setbacks, making it the city with the second-highest rate of loss among Australian capitals. In contrast, Sydney fared better with 88.1% of sellers securing profits, while Perth’s units saw 87.6% of sellers profitable. Brisbane remains an exceptional case, with a remarkable 99.9% of sellers reporting gains.
Geographic Breakdown of Loss-Making Sales
- Melbourne City Council: 45.5% of real estate transactions saw losses.
- Stonnington: 29.8% of sales resulted in losses.
- Port Phillip: 26.3% faced financial loss.
- Sydney’s Parramatta: 24.1% of sales lost money, alongside Strathfield at 22.3% and Ryde at 22%.
Research indicates that most loss-making unit resales are concentrated in five local government areas, which together make up over a third of total losses. These areas include Melbourne, Parramatta, Port Phillip, Sydney, and Stonnington. However, a slight improvement has been reported in recent trends within these regions.
Market Influences and Future Trends
Expert insights reveal that massive apartment developments during the 2010s contributed to an oversupply, which tempered demand when restrictive lending policies emerged. This scenario diverges sharply from the limited availability of new housing, creating a distinctive balance in the property market.
Owen highlighted that while overall values in Melbourne’s unit market grew by 2.7% in 2025, homeowners who purchased before the pandemic may experience fewer resale losses compared to recent buyers. The idea of a divided market is becoming increasingly relevant.
Consumer Behavior and Investment Appeal
Investors are showing renewed interest, particularly in Macroeconomic conditions favoring appealing rental yields nearing 7%. However, the risk of losses remains pronounced among buyers of smaller units, which constitute a significant portion of the apartment market.
According to PRD chief economist Diaswati Mardiasmo, the predominance of smaller units increases the likelihood of financial losses. Larger units tend to hold value better, suggesting a discernible risk for those invested in one-bedroom and two-bedroom properties.
In summary, homeowners selling properties at a loss is a notable issue, particularly in select suburbs like Melbourne. Divergent trends in profitability underscore the complexities of the current real estate landscape.
