For homes purchased on or after January 1st, 2008, the propensity to make a loss on the resale climbs substantially. Of those homes that resold over the December 2014 quarter, 14.1 per cent recorded a gross loss relative to the previous purchase price.For resales incurring a gross loss over the December quarter, the average length of ownership was just 5.9 years. Properties that recorded a gross profit were held for an average of 10.2 years, while those homes that resold for more than double the previous purchase price were owned for an average of 16.8 years.
The proportion of loss-making resales has fallen to 8.6% over the Dec-14 quarter from 9.1% the previous quarter and 9.6% a year earlier.
In Queensland, the largest proportion of loss-making resales was located in the following regions:
Mackay (Qld) (34.7%)
Fitzroy (Qld) (29.6%)
Townsville (Qld) (29.1%)
Wide Bay (Qld) (28.2%)
Cairns (Qld) (23.6%)
Outback (Qld) (22.9%)
Gold Coast (Qld) (21.4%)
Brisbane Council Regions
Across Brisbane region, the proportion of loss-making resales has trended lower over recent months and was recorded at 10.5% over the December 2014 quarter, down from 10.9% the previous quarter and 13.0% a year earlier. The Brisbane Council area has a significantly lower proportion of loss-making sales compared to all other regions at 6.2%. The council areas with the highest proportion of loss-making resales were Lockyer Valley (28.6%), Scenic Rim (27.0%) and Ipswich (18.4%).
|Region||Gross Loss-Making Sales - December Quarter 2014||Gross Profit making Sales - December Quarter 2014|
|% of Sales||Average Hold Period||Median Loss||% of All Sales||Average Hold Period||Median Profit|
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