Downturn in market sees 70pc of quick resellers record loss

More than 70 per cent of flat owners who were reselling their properties within a year recorded a paper loss last month, Centaline Property Agency said.

A survey conducted by the agency found 335 out of 454 property transactions involving sales within less than 366 days of purchase showed a paper loss.

Those which recorded a loss represented about 73.79 per cent of residential units - all of which were worth less than $50 million. However, the figure was down from 79.13 per cent recorded in February.

Centaline said the figures indicated most home buyers who bought units last year had failed to make a profit from their transaction when reselling them.

Most of these flat sellers suffered an average loss of about 17 per cent last month - which improved from a 19 per cent loss in February.

Centaline attributed the loss reduction mainly to a short-term rebound in property prices following the slump of up to 40 per cent from peak values last year, which came after the regional financial turmoil broke out.