Building too many apartments? A large number of owners in Sydney sold at a loss, and well-known Chinese districts were also among them, and buyers suffered serious losses
As years after year of new condominium construction have undermined property owners' prospects for property appreciation, one out of every four home sellers in Parramatta is selling at a loss.
The increase in supply has provided more options for homebuyers and has also improved local affordability, but the rise in loss-making sales has increased the risk that large mortgage owners will struggle to repay their loans.
The latest report released by CoreLogic on Wednesday showed that 25.3% of home sales in the Parramatta local government area were in the red in March. The median loss was $49,750 and the average homeholding period was 7.8 years.
Strathfield (22.8%), Ryde (22.4%) and Burwood (20.9%) have higher rates of selling at a loss, with homes in these areas being held between 5 and 8 years.
Eliza Owen, head of research at CoreLogic Australia, said much of the loss-making activity was due to increased apartment construction in these communities in recent years.
"Growth across the segment has remained relatively low for some time due to the high level of local property supply."
"But on the whole, Sydney's loss-making sales rate held steady at 8.4% in March, unchanged from the previous three months."
"The growth trend in the housing market across Sydney is stronger than that of Melbourne, with house prices in Sydney already up 2% this year as buyer demand outstrips the number of homes for sale," Owen said. ”
"From an affordability perspective, a well-supplied but underperforming market is desirable."
AMP chief economist Shane Oliver said the higher proportion of loss-making sales in areas such as Parramatta and Burwood could be due to higher mortgage pressure in those areas, especially with owners holding properties for a shorter period of time.
"Between 2015 and 2019 there was a condominium construction boom in Sydney," he said. "Many of the high-rises in Parramatta and Burwood have risen from the ground and the supply of homes is more abundant than in other areas."
Starr Partners首席执行官Douglas Driscoll说,Parramatta、Strathfield、Zetland和Chatswood等地的公寓建设热潮对市场产生了影响。
Four-bedroom bungalows are currently in the highest demand, but interest in apartments continues unabated due to stamp duty incentives for first-time home buyers.
"The demand for apartments is also quite high, depending on the location and type of apartment."