Buying prospects heat up
Increasing discounts on residential property is creating unique opportunities for investors to purchase at below market prices.
RP Data research shows vendor discounting is on the rise with national average reductions reaching 6.5 per cent and 6.6 per cent for units in March.
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Cameron Kusher, senior research analyst at RP Data, said such discounting was good news for buyers.
“If transaction volumes are falling and value growth is limited or continues to fall, buyers won’t need to pay top dollar for properties. Given this vendors need to question whether or not selling up is the best option, based on today’s market conditions.
“For potential buyers the news is much more positive because buyers now hold the power and can really begin to negotiate and pick up a property at a reduced price,” Mr Kusher said.
Of all the capital cities discounting has been strongest in Brisbane, with houses and units seeing an average vendor discount of 7.7 and 7.9 per cent respectively.
Hobart houses and units, Perth houses and Melbourne units are all also seeing high levels of discounting.
In fact, Mr Kusher said the vast majority of cities have recorded increases in vendor discounting, with only Sydney houses and units, and Adelaide and Perth units recording vendor discounting below average levels.
