One in 20 Brisbane units sell at a loss

“We have seen growth returning to that market but we did move through a long period where higher supply levels did keep values low in Brisbane for a long period of time.”

Lawless said, generally, investors were more willing to incur a loss on resales, and someone who found it challenging to keep up with their mortgage repayments may be more inclined to sell an investment property than their home.

But Lawless said, overall, the Brisbane property market was looking strong, with high rates of profit-making sales.

“Brisbane housing values are up more than 50 per cent from March 2020. Anybody that’s held their property through the pandemic or longer is going to be in a very strong equity position,” he said.

Lawless said since Brisbane property values are still rising, profitability was likely to improve in coming quarters.

AMP chief economist Dr Shane Oliver said he expected the highest proportion of loss-making sales to be in unit-heavy suburbs.

“The common factor seems to be areas that have a high level of units. Areas that are dominated by houses, you tend to get less loss making,” he said. “Those areas have been somewhat stronger.”

Oliver said house and unit prices would also affect the proportion of loss-making sales. Low unit price growth would lessen the opportunity for apartment owners to make a profit.

“Houses are decisively in positive territory, units less so. It continues a trend of people, for some reason, preferring houses over units.

“You think that would diminish over time as house prices get higher and higher.”

Affordability was also a factor; Oliver said apartment purchasers might not have the cash to buy into the safer investment, houses.

“It’s quite possible that people who bought the units are less financially sound as well, so there may be more forced sales with high interest rates in high unit suburbs,” he said.