Proportion of properties selling below their original price shown in latest research
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Proportion of properties selling below their original price shown in latest research

Proportion of properties selling below their original price shown in latest research

by Sasha Karen | May 14, 2019 | 1 minute read

A research analyst has compared the listing prices of property to their final selling prices and has found the full extent of discounting going on in the current market.

Aerial shot of property
May 14, 2019

According to CoreLogic research analyst Cameron Kusher, the last three months saw 75.6 per cent of properties selling for less than their original listing price, which is above the decade average of 69.3 per cent.

That is not likely to turn around any time soon, Mr Kusher said.

“As dwelling value growth accelerates, vendors can find it difficult to price properties. In turn, strong housing conditions typically result in fewer sales at a discount,” he said.

“With the national housing market continuing to see value declines, it is expected that, over the coming period, relatively few properties will be selling at a price above the original list price.”

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However, segmenting the statistics reveals a different picture, the research analyst said.

Combined capitals

Over the combined capital cities, the percentage for properties sold below their original listing price sits at 72.9 per cent for the last three months, above the decade average of 62.3 per cent.

“While this is a much higher share than the decade average (62.3 per cent), it is interesting to note that despite the weak conditions, there are still more than a quarter of properties selling for more than the original list price,” Mr Kusher said.

Sydney

In Sydney, 78.1 per cent of property sales were below their original listing price over the last three months to April 2019, well above the decade average of 59.4 per cent.

This was due to the boom in the housing market from 2013 to 2015, Mr Kusher said.

Melbourne

Melbourne currently is seeing 76.3 per cent of sales selling for less than the original listing price over the last three months to April 2019, while a decade ago the figure sat at 49.2 per cent.

“This highlights the strength of the Melbourne housing market over recent years, with sales at a discount much less prevalent than elsewhere,” Mr Kusher said.

Brisbane

Brisbane is currently performing well for its 10-year average, with 67.2 per cent of properties selling under the original listing price over the last three months to April 2019 compared to 71.4 per cent.

Adelaide

Adelaide property is seeing 75.4 per cent of properties selling below the original listing price for the last three years to April 2019, above the decade-long average of 68.2 per cent.

PerthPerth, TAS Perth, WA

Perth’s last three months to April 2019 have seen 74.1 per cent of properties sell under the original listing price, which is just above the decade average of 73.6 per cent.

“You have to go all the way to 2006-07 when Perth’s housing market was booming to see a majority of properties not selling at a discount,” Mr Kusher said.

Hobart

Going all the way down south to Hobart will see a far majority of properties not selling at a price under the original listing price, with the last three months to April 2019 showing 32.5 per cent of properties, compared to the decade average of 55.2 per cent.

Darwin

Meanwhile, travelling all the way up north will see a far majority of properties selling at a price under the original listing price, with the last three months to April 2019 showing 85.4 per cent, which is barely above the decade average of 84.9 per cent.

Canberra

The last three months to April 2019 have seen more than half of properties sold not falling below the original listing price at 45.8 per cent, which is below the decade-long average of 54.1 per cent.

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