$300 million lost by my neighbours

Recent articles have pointed to significant loses by Victorian property owners.

The Melbourne CBD, Southbank and Docklands are the state’s leading loss-making suburbs.

One out of every 20 properties sold in those locations had lost their owner money, according to the data from a property research firm.

This is not news to me. My eldest son Nicholas works in property management and he has often commented on the poor return sales he sees on newish properties. The scenario is tragically simple, buy a new apartment at full tote odds, sell after a year or so with a resultant loss in value when the apartmnet tower is no longer the latest and greatest.

This commentator sees it as a product of new development oustripping market growth

a significant number of properties sold and not achieve the initial purchase price. This is not the due to the state of the real estate market per se but to purchasers being forced to sell due to family and financial pressures 

Being forced to sell due to financial reasons can be read as code for taking  a shellacing in  a soft property market.

Cavaet Emptor.