For investors looking to snap up property across any of Australia’s capital cities, new data has revealed vendors nationwide are bracing for losses on their original listing prices to reach sale agreements.
In CoreLogic’s Property Market Indicator Summary for the week ending 25 August 2019, the data revealed that for all capital cities, vendor discounts are common place.
The median length of time houses and units are sitting on the market was also revealed to be significantly upwards of a month across all capital cities.
Smart Property Investment has compiled the results for each city to show the median time houses and units are currently sitting on the market, as well what you could expect from each city’s average vendor discount.
The harbourside city is seeing houses spend a median 38 days on the market, and selling at a 7.1 per cent discount on the original listing price.
It’s not too dissimilar in the unit market, where apartments spend a median 43 days on market and sell at a 7.3 per cent discount on the original sale price.
The Victorian hub is currently seeing houses spend around 37 days on market, and units listed for around 35 days before being snapped up.
The average vendor discount on the original listing prices for houses is 6.8 per cent, while units are going for approximately 5.8 per cent less.
The average Brisbane abode time on market is 81 days, with the average vendor discount for houses sitting at 6.7 per cent.
It’s a similar statistic for the city’s units, which spend a median 86 days on market for the same average vendor discount.
The city of churches’ houses for sale spend a median 62 days on the market, and are seeing vendors dropping their listing prices by 6.5 per cent on average.
For units, the average amount of time spent for sale is 77 days, with vendors accepting 7.8 per cent losses on average to secure deals.
Out of all the capital cities considered in the analysis, Perth houses and units spend the longest median time on market.
The median amount of time for a house to reach settlement in the Western Australian city is 99 days, and on average, is requiring vendors to drop their prices by approximately 8.8 per cent.
Units spend a median 106 days on the market, and see an average discount of 9.9 per cent on the original listing price to reach settlement.
The average house in Tasmania’s capital spends just 40 days on the market, making it the fourth fastest turnover surveyed.
The average vendor discount being applied is 5.3 per cent of the asking price.
The relative strength of the market flows through to unit sales, with the average vendor discount sitting at a lower 3.5 per cent, and taking just 45 days to clear.
The average house in Darwin spends 91 days on the market, with vendors having to settle, on average, 8.9 per cent lower than the original asking price to make a deal.
Interestingly, Darwin and Melbourne are the only two cities where units spend less time on the market than houses, with the median time on market for a Darwin unit sitting at 79 days.
Despite the relatively speedy turnover, vendors are having to cut prices the most significantly of all markets surveyed to make a sale, with an average vendor discount of 13.9 per cent recorded.
The ACT’s housing market is relatively stable in comparison to the other capital cities, with the median time on market and the average vendor discount at the lowest levels Australia-wide.
Houses spend a median 33 days on market, and sell for an average discount of 3.5 per cent on their original asking price.
Units, while spending almost twice the amount of time on market, at 64 days, are still only requiring a 4 per cent discount to reach settlement.