Across the broad regions of Australia, the most significant proportion of loss-making re-sales are being recorded within the Regional Queensland marketplace (23.2%) and in Regional Tasmania (19.0%). The weakness in Queensland is mostly reflective of the previously weak conditions across the lifestyle markets and the growing weakness across regions linked to the resources sector. It is important to note that across lifestyle areas the proportion of loss making sales is reducing as we start to see some low levels of value growth return to these housing markets.
From a regional perspective the largest proportion of loss-making re-sales were located in the following regions: Wide Bay (Qld) (30.6%) Townsville (Qld) (28.5%) Cairns (Qld) (28.2%) Gold Coast (Qld) (25.6%) Mackay (Qld) (23.3%) Sunshine Coast (Qld) (23.2%) Richmond-Tweed (NSW) (22.3%) West and North West (Tas) (20.2%) Wheat Belt (WA) (19.9%) South-East (SA) (19.8%)
While specific numbers are not provided there is a graph in the report differentiating units and houses. Cairns, Townsville and Mackay stand out with loss making unit sales for the quarter above 40% of total sales.
I think most people may also be surprised to find Townsville slightly above Cairns on that scale. Queensland Economy Watch recently posted some concern on a weaker economic outlook for Townsville: North Qld struggling to recover – Cairns looking slightly better, but not Townsville yet.
HT Macrobusiness: Timing works in buying property too