Powered by MOMENTUM MEDIA

Residential slowdown results in vendor discounting

By webmaster 11 June 2010 | 1 minute read

The recent slowdown in Australia’s residential property market could result in greater vendor discounting, RP Data has found.

According to RP Data’s research analyst Cameron Kusher, Brisbane recorded the greatest levels of discounting during April at -6.2 per cent.

Mr Kusher said this result goes hand in hand with the fact that Brisbane also recorded the greatest drop in house prices over the month.

Surprisingly however, in the unit market, Melbourne recorded the greatest level of vendor discounting in April despite the fact that unit values increased by 1.3 per cent over the month.

The result indicates that the market is not necessarily moving as quickly as vendors would anticipate.

Advertisement
Advertisement

“Vendors in this market may be setting unrealistic initial asking prices on these units. This is understandable trend given the rapid increase in Melbourne property values over the last year,” Mr Kusher said.

“As market dynamics change, generally we’ve noticed that vendors take some time to become aware of the change and the amount of vendor discounting tends to increase.”



Residential slowdown results in vendor discounting
default
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.