At 21 per cent, Warrnambool and the south-west rated the highest in Victoria and in the top 10 in the nation for loss-making sales in the June quarter, RP Data’s Pain and Gain Report released this week showed.

A typically slower winter selling season could be to blame for the figures, which have increased from 15 per cent in the March quarter.

The south-west rates alongside mining regions suffering from the resource boom slow-down. Outback Western Australia recorded 32.6 per cent of sales making a loss, Mackay, Queensland 46.6 per cent and Fitzroy, Queensland 35.6 per cent.

In contrast, other Victorian regional centres such as Ballarat, Bendigo and Geelong recorded some of the lowest rates for loss-making resales at 6.8 per cent for Ballarat, 4.6 per cent for Bendigo and 5.6 per cent in the Geelong region. 

Over the June 2015 quarter, nationally 9.1 per cent of homes resold recorded a gross loss when compared to their previous purchase price. 

“This figure was slightly higher than over the March 2015 quarter (8.9 per cent) and also slightly higher than the 8.6 per cent recorded over the June 2014 quarter. Although the proportion of loss-making resales rose, the figure has been fairly steady over the past 12 months,” the report said.

Unit resales in Warrnambool and the wider area fared better, with about 15 per cent of units sold in the south-west making a loss. 

Investors were worse off than owner-occupiers across regional Victoria, with 11.4 investment houses selling at a loss.

“Investor housing stock generally has much more narrow overall appeal than owner occupier housing stock,” the report said.

“Arguably, transacting at a gross loss is easier for an investor to accept, as the loss can be offset against future capital gains.”

The report said south-west houses held for a relatively short time, between five and seven years, were more likely to record a loss.

“Far fewer homes are transacted at a loss when they are held for a decade or more,” the report said.

The quarterly RP Data Pain and Gain Report compares the most recent sale price to the previous sale price to determine whether the property sold at a gross profit or gross loss.