“The general rise in the Gisborne market since the previous peak in 2007 has been smaller than other centres, making it harder for any individual seller to turn a profit.”
The proportion of properties sold at a loss nationally dropped slightly from 4.3 percent to 4 percent, with gross losses of $13.9 million.
Small increases in the proportion of properties sold at a loss were seen in Auckland, up 0.3 percent, and Hamilton, up 1.2 percent, but there was a substantial decline in Tauranga, down 2.5 percent.
In Wellington, the proportion of loss-making sales is the lowest it has been for a decade (1.1 percent), consistent with upwards price pressure.
Dunedin is also in a strong position, with the lowest proportions of losses of New Zealand’s main centres (0.7 percent), reflecting solid growth in values in the city.
Nationally, properties sold at a loss during the quarter had been owned for a median 4.2 years.
This is slightly less that 4.5 years in the previous quarter, and likely driven by market fatigue, in which owners question scope for capital gains.
The hold period for properties resold at a profit rose from 7.9 years to 8.1 years — consistent with a slowly rising market, where the merits of longer hold periods come back to the fore.
Property types played a greater role in determining profits or losses in the final four months of the year, compared to the previous quarter, with 9.6 percent of apartment sales being made for a loss and just 3.6 percent of house sales making a loss. This shows that any market fatigue has been concentrated in the apartment segment.
Aucklanders snapped up the greatest median profits per sale in the country at $370,000, up from $360,000 in the previous quarter.
Queenstown Lakes followed at $357,000, up from $339,000, and recorded no loss-making sales at all during the quarter.
