City apartments in the red

City apartments in the red

The glut of city apartments springing up everywhere is hurting the property market with new data showing that almost one in four Melbourne CBD properties are selling at a loss.

According to the CoreLogic RP Data Pain and Gain report, loss making home sales in the City of Melbourne were running at 24 per cent in the first three months of this year. That compares to 17 per cent in the December quarter.

On average, home sellers were $34,301 out of pocket. Home seller losses in the City of Melbourne totalled $5.81 million. Clearly, an over-supply is affecting the price.

That said, 96 per cent of house sales and 90 per cent of unit sales were profitable across the rest of Melbourne with more than a third of sellers at least doubling their money.

 



An award winning author and journalist, commentator, lecturer, and speaker, Leon is a freelance business journalist who covers a range of areas including politics, strategy, globalization, leadership and all the big trends ahead. His main skill is summing up all the news that’s around. For the last 30 years, his main focus has been on management issues. He also produces two podcasts for RMIT University, Talking Business and Talking Technology. Leon has worked for Fairfax, News Limited, AAP and the Herald and Weekly Times.


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