Chermside unit vendors are the most generous when it comes to asking price discounting, a recent property market study revealed.
The latest report by Domain analysed the average rate of vendor discounting across Brisbane, the Gold Coast, and the Sunshine Coast. The analysis covered six months data to March 2019 and used a minimum of 30 observations whilst excluding properties that were sold through auction or were without a listed price
The report shows that in some suburbs, asking prices have dropped by as much as 12 percent. For units, Chermside was the top suburb where vendors provide the biggest discount on their unit asking price with an average of 8.90 percent whilst Carindale gave the largest percentage of discount with 8.50 percent
According to Domain, the median price of a two-bedroom unit in Chermside, based on sales within 12 months, is $370,000 or a decline of 4.6 percent from 2018. The average days on market for the same period was 177 days with a total of 70 units sold.
The unit median sale price in Chermside has been dropping since 2015, according the realestate.com.au data says. From $461,000 in 2015 and $389,000 in 2018, the median unit price further dropped to $384,085, based 100 units sold from 1 May 2018 – 28 May 2019.
Other suburbs on the list with the highest average price discount for units are Redcliffe (8.60%), New Farm (8.10%), South Brisbane and Coorparoo (8.00%), Annerley (7.70%) Fortitude Valley (7.50%). Kangaroo Point, St Lucia, and Brisbane City round out the list with a unit price discount average of 7.20%.
Clontarf, on the other hand, followed Carindale as top suburb for house sale asking price discounting with 7.70%. Rounding out the list are Redcliffe (7.60%),Rochedale South (7.40%), Cleveland (7.30%), Kippa-Ring (7.20%), Banksia Beach (7.10%), Margate and Redbank Plains (7.00%), and Scarborough (6.90%).
Whilst the average price discounting provides a good glimpse of how a suburb’s housing market is doing, several factors could trigger discounting despite good buyer demand, experts say. Some suburbs, for example, saw vendors eventually discounting their price because expectations were unrealistic which eventually led to overpriced house or unit or even longer days on market.