New Zealand Pain & Gain Report July 2017 | 5 © Copyright 2017. CoreLogic NZ Limited (CoreLogic) and its licensors are the sole and exclusive owners of all rights, title and interest (including intellectual property rights) subsisting in this publication including any data, analytics, statistics and other information. All rights reserved. 1997 2002 2007 2012 2017 0% 10% 20% 30% 40% 50% Apartments Houses Proportion of total resales at a loss The performance of resales of houses and apartments differs quite significantly. Historically houses are much more likely to resell for a profit than apartments. It is worth noting however, that the only significantly sized apartment market within the country is in Auckland and the quarterly series for apartments is more volatile due to lower sample size. Over the first quarter of 2017, 3.4% of house resales and 7.4% of apartment resales were at a price lower than the previous purchase price. Both these figures are down on the prior quarter. Pain Gain Median Gross Loss Total Value of Loss Median Gross Profit Total Value of Profit Apartments -$42,000 -$1,774,980 $150,000 $85,766,675 Houses -$15,000 -$19,919,971 $165,000 $3,488,975,814 Over the most recent quarter, there was almost $20m in realised losses for resales of houses and $1.8m in realised losses for apartments. This illustrates the difference in volume of the two property types. The median loss per apartment sale ($42,000) was almost triple that of houses ($15,000), which is surprising given apartments are usually worth less than houses. Median profit was slightly higher for houses sold for a gain ($165,000) than apartments ($150,000), but the total value is vastly different. There was almost $3.5b in realised gain for houses, compared to $86m for apartment gains. Q1 2017 Q4 2016 Q1 2017 Q4 2016 3.4% 4.0% 7.4% 8.8%