Home owners wanting to sell are being forced to discount asking prices heavily in the face of weak buyer demand.
A new report from RP Data has revealed properties on coastal locations are experiencing the largest levels of vendor discounting, with reductions close to 20%.
“As high net worth individuals feel the pinch of dramatic falls across equity markets, lower than anticipated bonuses and in some cases job losses, the holiday home or other discretionary assets are usually the first to go,” RP Data’s research analyst Cameron Kusher said.
Capital cities also face discounts of more than 7%, RP Data said, with Melbourne experiencing the greatest average level of discounting for houses at 7.7% and Perth units at 7.1%.
Saint James in WA topped the discounting list for houses at 18.6% followed by Hove in SA (18.2 per cent) and QLD’s Paradise Point and NSW’s Byron Bay at 17.3%.
As the market becomes more adjusted to current conditions RP Data said the high level of discounting should fall to a more normal range.
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