More than one-in-six residential property sales in Auckland in Q2 was loss-making

More than one-in-ten of the residential properties sold in the second quarter (Q2) of this year was sold at a loss compared to its previous purchase price, according to the latest Pain and Gain Report from property data company Cotality.

It found that 10.6% of nationwide residential resales in Q2 achieved prices below their previous purchase price, leaving their vendors with significant losses.

The percentage of loss making sales was up from 9.3% in Q1 this year, and has increased steadily from less than 1% at the height of the last property boom in early 2022.

In the Auckland Region, where the housing market is particularly weak, 15.9%, or more than one-in-six sales, was made at a loss in Q2.

Nationwide, the median loss for properties selling for less than their previous purchase price was -$52,500, while in Auckland the median loss was -$75,000 - see the table below for the full main centre figures.

Those losses would be even greater once selling expenses such as agent's commission and lawyer's fees are added, which can easily run to $25,000 or more for average-priced properties.

Of course the other side of the coin is that 89.4% of nationwide  sales in Q2 were sold for more than their original purchase price, with 84.1% of sales in Auckland making a gain.

The median gain was $279,000 nationally and $350,000 in Auckland.

The main determining factor in whether properties were sold for a profit or loss was the length of time they had been owned.

The median ownership period for properties selling at a loss was 3.5 years, while those selling for a profit had a median ownership period of 9.4 years.

The report also highlighted that apartments were far more likely to be resold at a loss than stand alone houses.

In Q2 this year, 9.8% of house resales sold at a loss, up from 8.5% in Q1, while 33.8% of apartments were sold at a loss, up only slightly from 33.2% in Q1.

Cotality Pain & Gain Report - Q2 2025