Sellers in some Australian suburbs are cutting more than 14% off their asking prices to close a deal, according to new rankings from the Real Estate Buyers Agents Association of Australia (REBAA).
The association analysed Cotality data to identify the 20 suburbs with the biggest vendor discounts over the three months to September. Culburra Beach on the NSW South Coast topped the list, with a median discount of 14.1%. It was followed by Charters Towers City in Queensland at 12.8% and Daylesford in Victoria at 11.5%. Every suburb in the top 20 recorded a discount of at least 8.7%.
Prestige markets are also on the list. Sydney’s Killara, where the median dwelling value is close to $2.74 million, ranked sixth with a 9.9% discount. Glenhaven, valued at about $2.3 million, recorded the steepest annual value fall in the top 20, down 13.1%.
Cotality research director Tim Lawless said new listings are running almost 20% below the usual level for this time of year, but homes are taking longer to sell, so stock has built up.
He said the larger pool of stock is “giving buyers more choice and greater negotiation power”. A year ago, supply was tight and sellers held most of the bargaining power.
The build-up has come as prices soften. Cotality’s index showed national home values fell 1.2% in October, a seventh straight monthly decline that leaves values 6.7% below their March peak.
Discounting isn’t limited to falling markets. Several suburbs in the ranking recorded strong price growth over the year, but their vendors are still accepting deep cuts. Shoalwater in Western Australia rose 12.2% in value but had a median discount of 9.3%. In Queensland, Ashmore and Merrimac both grew by more than 8% and recorded discounts of more than 9%.
Sentiment in Queensland has also shifted. The Westpac–Melbourne Institute index of house price expectations fell 32% in the state in November, the sharpest drop of any state.
“While national property prices may tell one story, conditions on the ground can vary significantly from suburb to suburb,” said REBAA president Zoran Solano (pictured).
He said well-prepared buyers are in a stronger position.
“In many markets, buyers who negotiate effectively may be able to secure a property for considerably less than the advertised price,” Solano said.
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