Why you shouldn’t invest your cash in an apartment: The capital cities where the majority of units are selling at a loss
- New CoreLogic figures show 21.4 per cent of capital city units selling at a loss
- March quarter sales loss figures were the highest since the June quarter of 1997
- In central Perth, 60 per cent of homes are selling for less than owner paid for it
- More than 58 per cent of apartments in the Darwin market are selling at a loss
The proportion of capital city units selling at a loss is at the highest level in 22 years and is expected to worsen.
New figures from real estate data group CoreLogic show 21.4 per cent of apartments fetched less than what their owner had paid for it.
In one city centre market, however, more than 60 per cent of properties are selling at a loss.
The proportion of capital city units selling at a loss is at the highest level in 22 years and is expected to worsen (pictured is Darwin where 58.2 per cent of apartments are selling at a loss)

New figures from real estate data group CoreLogic show 21.4 per cent of apartments fetched less than what their owner had paid for it (pictured is Melbourne’s city centre where 31.8 per cent of properties sold for a loss in the March quarter)
The percentage of capital city units selling for a loss during the March quarter of 2019 was the highest since the June quarter of 1997.
‘With housing market conditions continuing to weaken since March 2019, we would expect the share of capital city houses and units reselling for a loss to continue rising,’ CoreLogic said in its Pain and Gain report released on Monday.
The ability of investors to write-off their losses against future capital gains was expected to boost the supply of homes for sale in a slowing market, perpetuating the real estate downturn.
Darwin was, by far, the worst capital city with 58.2 per cent of apartments selling at a loss, followed by Perth on 49.2 per cent.
Brisbane was also a bad market for unit investments, with 35.9 per cent selling at a loss, compared 23.3 per cent in Canberra, 17 per cent in Melbourne and Adelaide and 11 per cent for Sydney.
By comparison, only 2.1 per cent of units in Hobart sold at a loss.

The percentage of capital city units selling for a loss during the March quarter of 2019 was the highest since the June quarter of 1997 (pictured is Perth where 60.4 per cent of properties sold at a loss)
At the other end of the spectrum, 100 per cent of units in outback Queensland sold at a loss, while more than 60 per cent of Townsville apartments sold at a bargain price.
When it came to detached houses, the proportion selling at a loss in the March quarter across Australia stood at 9.5 per cent, the highest since September 2013.
Some areas of Sydney and Melbourne, have experienced sharper than average property price falls.
In the Strathfield area, in Sydney’s inner-west, 20 per cent of homes sold at a loss, with sellers losing a median amount of $94,000.
In central Melbourne, 31.8 per cent of properties sold at a loss, with vendors losing $44,406.
Perth’s city centre was particularly stark, with 60.4 per cent of real estate there selling at a loss, with sellers losing $115,000.
While Perth’s real estate values have been in decline since 2014, Sydney and Melbourne property prices began to tumble in 2017 after the Australian Prudential Regulation Authority tightened the rules on investor and interest-only loans.
The price falls have continued despite interest rates being at a record low.

Brisbane (pictured) was also a bad market for unit investments, with 35.9 per cent selling at a loss, compared 23.3 per cent in Canberra, 17 per cent in Melbourne and Adelaide and 11 per cent for Sydney