Australian housing market shows split between national profits and urban losses

Australia's housing market is showing divergent trends following federal budget tax changes and interest rate rises. While national data from Cotality indicates that 95.4% of sales in the June quarter resulted in a profit, specific urban sectors are experiencing significant downturns.

Melbourne's central business district has emerged as the country's worst-performing market, with 47% of homes selling at a loss during the June quarter. This figure is ten times the national average loss rate of 4.6%. The median loss in Melbourne's city centre reached $61,250, exceeding the typical Australian loss of $45,000. High loss rates were also noted in areas such as Stonnington and Port Phillip.

Housing Minister Clare O'Neil defended the government's tax reforms, stating that the changes are achieving intended goals. She noted that despite a 10% drop in new home sales in August, housing approvals are rising and investment in new builds is at record levels. Conversely, the Housing Industry Association has criticized the policies, arguing that restrictions on self-managed super funds borrowing for property are undermining new supply and market feasibility.