Almost half of all property resales in Melbourne's central business district are now selling at a loss, according to new figures from data firm Cotality, highlighting a growing divide in Australia's housing market. The report shows that while overall profitability remains historically high, recent buyers—particularly apartment owners in Sydney and Melbourne—are increasingly bearing the brunt of the downturn, with rising interest rates, cost-of-living pressures and weaker consumer sentiment squeezing demand further.

Cotality figures for the June quarter show 47 per cent of resales in Melbourne's CBD made a loss, while Sydney's Parramatta recorded a 23 per cent loss-making rate; nearly 40 per cent of all unit resale losses nationally were concentrated in just five council areas, including Melbourne CBD, Parramatta, Stonnington, Port Phillip and Sydney CBD. In sharp contrast, Western Australia is booming, with Chittering near Perth topping the country's most profitable resale markets with a median gain of $872,500, ahead of Cambridge ($740,000) and Joondalup ($732,500), pushing traditional hotspots like Kiama and Noosa down the rankings. Economists warned that further interest rate rises, expected later this month, could push more mortgage holders and sellers into financial distress.