Sydney suburbs where property owners are selling at a loss

One in four Parramatta home vendors is selling at a loss as years of new apartment construction weaken owners’ capital growth prospects.

CoreLogic head of Australian research Eliza Owen said much of the loss-making activity was due to an increase in apartments being built in these neighbourhoods in recent years. “The capital growth trend across Sydney has been stronger than in the Melbourne market,” Owen said, adding Sydney home values had risen 2 per cent over the year to date as high levels of demand outstripped the amount of homes for sale.She said a market with plenty of supply that was performing poorly was desirable from an affordability perspective.

“If prices are falling it increases the risk of people not being able to repay the bank, but it is a good thing for buyers that are getting in on that downswing.”, and both the NSW and federal governments are working on increasing the supply of homes to address a crisis that has sent Sydney house prices and rents to record levels.

“The unit building boom which occurred between 2015 and 2019 … in Sydney it was all over,” he said. “A lot of cranes went up in Parramatta and Burwood, it wasn’t just the city. The supply was more pronounced than it was in other areas.”

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