One in five apartments was sold at a loss in the third quarter, despite the rebound in property prices.

The proportion of loss-making sales in Perth rose by 5.1 per cent to 52 per cent, Adelaide by 7.6 per cent to 23.6 per cent and Canberra by 1.1 per cent to 21.1 per cent.
In Sydney, the number of units sold at a loss fell by 1.7 per cent to 12.5 per cent and Melbourne by 2.3 per cent to 15 per cent as the strong population growth helped kept demand high.
In contrast, a substantially higher proportion of houses sold across the country were profitable, with nine in 10 houses making a tidy gain.
Investors rack up losses
Over the third quarter, the proportion of investors selling at a loss rose by 3.9 per cent in Canberra and by 4.2 per cent in Adelaide. All the other capitals recorded a drop in the number of investors selling at a loss.
Nationally, 16.6 per cent of investment properties were sold at a loss a slight improvement from the previous quarter, but it is still higher compared with 11.1 per cent of owner-occupied properties selling at a loss.
“This could be a reflection of investors struggling to get tenants into their properties while dealing with higher mortgage repayment costs as they transition from interest-only to principal and interest loans, making the asset less viable,” said Ms Owen.
“Investors were also more prepared to incur a loss because they can offset those losses against future capital gains, unlike owner-occupiers.
“If home values fall, investors maybe more inclined to ‘cut their losses’ and exit the market, freeing up capital and offsetting their loss against future investment profits.”
Biggest gainers (and losers)
Hobart sellers continued to amass healthy profits off the back of the large dwelling price gains of 43.8 per cent over the past five years.
During the September quarter, almost all (98.8 per cent) of investment properties resold in Hobart were profitable, compared with 98 per cent of owner-occupied dwellings.
All homes in Macedon, Victoria, like this one at 14 Lauriston Street, were sold for a profit during the third quarter of 2019. 
In Sydney, more homes were sold for a profit, reflecting the 3.5 per cent growth in dwelling prices during the same period.
Nine out of 10 homes (90.2 per cent) were profitable, up from 89.1 per cent in the June quarter. However, this is lower compared with a year ago.
Homes sold in Sydney’s upmarket suburbs scored the biggest gains, with 98.6 per cent of all homes sold in Mosman and 96.3 per cent of homes sold in Waverley making a profit.
In Melbourne, a higher proportion of sellers (93 per cent) also enjoyed a profit during the same period, with the Macedon Ranges recording the best result.
All the 101 homes that were sold generated a profit as Melbourne buyers competed for the scant offering.
Kirsty Murray, selling agent with Ray White Kyneton, said buyers were enticed by the area’s affordability and lifestyle.
“Our median house price is still sitting around $600,000 and we’re only an hour away from Melbourne,” she said.
“The upgrades to the railway line have made a huge improvement to the commute of professionals moving into the area.”
On the flip side, almost one in five (18.5 per cent) homes sold in Sydney’s western suburb Parramatta incurred a loss. In Strathfield, 16.3 per cent of sales made a loss, while 18.3 per cent of properties sold in the Canterbury-Bankstown area were sold below the purchase price.
In Melbourne, sellers within the Melbourne council area suffered the most pain with more than one-third (32.9 per cent) of all homes selling for a loss.