The upper crust of the Australian property market appears to have taken a massive hit in value according to a new list compiled by the Weekend Australian.
It reported that Glenn Willis, who previously headed the Australian arm of Lehman Brothers, sold his Mosman property on Sydney's North Shore for $8m less than what it was worth before the crisis.
The house was valued at $18m last October around the time the house was listed for sale, but was recently sold for $10.2m.
"I was hoping to get a larger amount, but the top end of the residential property market has come off dramatically," Willis told the paper
Willis's home was one among hundreds of owners of prestige property throughout the country included in a list compiled by the newspaper (from Australian Property Monitor data) who have been forced to sell their homes for much less than they anticipated getting.
Things are particurlarly bad in Mosman - the North Sydney suburb has had more discounted sales than any other in the country with nine properties in the suburb featured on the Top 100 list.
The list revealed that a property owned by investment strategy director Christopher Rosch in Surfers Paradise was sold at a 45.5% discount when it was offloaded in a mortgagee sale in January for $2.5m - it was bought in 2004 for $4.6m.
A Melbourne property, in Glenferrie Road, Hawthorn, came second on the list after it was sold for 44.7% less than its asking price when it changed hands in April for $4.1m.
Mass defaults unlikely - Rising unemployment and expected interest rate hikes are unlikely to result in large scale defaults, according to a report by mortgage insurer QBE LMI.