# Property Sellers Face Highest Loss Rates in 14 Years Market data reveals 15.8% of properties sold at a loss amid cooling values. - **Source:** [1News](https://www.1news.co.nz) - **Published:** 2026-11-11 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/fc6fb48d-5eae-4720-9f4a-f3f09ec97d2c ## Record High Resale Losses Recent data from Cotality indicates that 15.8% of properties sold in the latest quarter resulted in a financial loss for the seller. This represents the highest proportion of loss-making transactions recorded in the last 14 years. These figures highlight the challenging environment currently facing property owners looking to exit the market. ## Market Drivers and Pressures Chief property economist Kelvin Davidson attributes these trends to a significant decline from peak property values. An abundance of active listings currently favors buyers, while persistent economic uncertainty and rising mortgage rates further complicate the landscape. These factors collectively create a difficult environment for those attempting to sell their residential assets. ## Regional Disparities in Losses The impact of market conditions varies significantly across regions. Auckland recorded the highest loss rate at 25.5%, followed by Wellington at 20.4% and Nelson at 20%. Conversely, Christchurch and Dunedin reported much lower loss rates of 7.5% and 6.9% respectively, while Queenstown saw only 5.5% of properties sold for a loss. ## Property Type Vulnerabilities Apartments are particularly susceptible, with approximately half sold for a loss during the period. Townhouses followed at 22.5%, while standalone houses saw a 13.4% loss rate. Properties with smaller land plots often experience less capital gain over time, making them inherently more vulnerable to price fluctuations compared to larger, well-located residential properties. ## Impact of Ownership Duration Holding period remains a critical factor in determining profitability. Properties sold for a profit were held for a median of 10.4 years, whereas those sold at a loss were owned for a median of only 4.5 years. This suggests that longer ownership cycles provide a necessary buffer against short-term market volatility. ## Profitability and Median Figures Sellers who managed to secure a gain achieved a median profit of $270,000. While this figure is down from the $440,000 peak observed in late 2021, it remains higher than levels recorded before 2020. Meanwhile, those who incurred losses faced a median deficit of $60,000 per property transaction during the recent quarter. ## Nuance in Property Quality Broad market data can obscure specific asset performance. High-quality townhouses that are well-located and feature good access often continue to command strong prices. Conversely, units with limited parking or poor access in less desirable locations are significantly more likely to result in a loss, regardless of the broader market's general downward trend. ## Market Outlook and Stability Experts emphasize that these figures do not signal a new, sudden collapse in prices but rather a reflection of existing value adjustments. While the frequency of losses is increasing, the scale of these financial hits does not currently pose a systemic danger to the broader financial system or overall market stability. ## Sources covering this story - https://www.1news.co.nz/2026/11/12/property-sellers-losing-money-at-rate-not-seen-in-14-years-cotality/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._