New data analysis by Domain looked at the average rate of vendor discounting on properties in suburbs throughout Brisbane, the Gold Coast and the Sunshine Coast over the six months to March this year and found some areas were discounting by as much as 12 per cent.
Houses at Carindale, Clontarf, Redcliffe and Rochedale South topped out the list of Greater Brisbane suburbs with the highest percentage of vendors discounting their asking price, while Chermside, New Farm, Redcliffe and South Brisbane had the highest rate of discounting for units.
On the Gold Coast, houses at Broadbeach Waters and Hope Island both recorded double-digit average vendor discounting, while units at Main Beach and Southport had the highest rate of discounting.
| Brisbane houses | Avg % discount | Brisbane units | Avg % discount |
|---|---|---|---|
| Carindale | 8.50% | Chermside | 8.90% |
| Clontarf | 7.70% | Redcliffe | 8.60% |
| Redcliffe | 7.60% | New Farm | 8.10% |
| Rochedale South | 7.40% | South Brisbane | 8.00% |
| Cleveland | 7.30% | Coorparoo | 8.00% |
| Kippa-Ring | 7.20% | Annerley | 7.70% |
| Banksia Beach | 7.10% | Fortitude Valley | 7.50% |
| Margate | 7.00% | Kangaroo Point | 7.20% |
| Redbank Plains | 7.00% | St Lucia | 7.20% |
| Scarborough | 6.90% | Brisbane City | 7.20% |
Source: Domain Group. Note: average vendor discounting, six months to March 2019.
Maroochydore and Tewantin headed up the Sunshine Coast houses that were being the discounted by the highest percentage.
Domain economist Trent Wiltshire said the rate of discounting was another market indicator that could help assess conditions in certain suburbs.
The data was compiled using a minimum of 30 observations and did not include properties that sold via auction or without a listed price.
“This can be a bit more timely than price data,” he said. “But it is only an average figure and, while the average or median is the simplest way to look at a suburb, it doesn’t tell the full story.”
Will Torres of Torres Property said overall the housing market in Carindale was performing well but that the average discounting rate was likely brought down by a specific price point.
Houses priced around the mid $1 millions in Carindale are being discounted, says Will Torres.
Photo: Tammy Law
Carindale’s median house price is $879,750, a rise of 1.1 per cent over the year to March.
“I’d say the market that is being affected at the moment is that mid-$1 million price range,” he said.
“Rewind to six months ago I was selling houses in this price range in three weeks — now I’m struggling to get numbers in the door. That’s where the discounting will be, around that $1.5 million range and that’s why the Carindale percentage is that high.
“Anything under that price point is still performing really well and selling well. Days on market have stretched but the buyers and the demand is overall still there.”
Broadbeach Waters recorded the highest rate of vendor discounting, by up to 12 per cent. Jordan Williams of JW Prestige said that figure had likely been increased by houses in the $2 million to $3 million range, which were sometimes overpriced.
“If you’re 10 per cent over the odds you won’t get a result, you won’t get a deal — that’s why you’re seeing that average discount for Broadbeach Waters,” he said.
| Gold Coast houses | Avg % discount | Gold Coast units | Avg % discount |
|---|---|---|---|
| Broadbeach Waters | 12.00% | Main Beach | 10.30% |
| Hope Island | 10.30% | Southport | 9.90% |
| Runaway Bay | 9.80% | Surfers Paradise | 9.20% |
| Southport | 8.60% | Labrador | 8.30% |
| Benowa | 8.20% | Mermaid Beach | 8.00% |
| Helensvale | 7.50% | Broadbeach | 7.70% |
| Mermaid Waters | 7.30% | Runaway Bay | 7.60% |
| Parkwood | 7.00% | Burleigh Heads | 7.50% |
| Arundel | 6.90% | Biggera Waters | 7.30% |
| Reedy Creek | 6.80% | Robina | 6.30% |
Source: Domain Group. Note: average vendor discounting, six months to March 2019.
“So this figure doesn’t mean the market has dropped here, it means some properties were overpriced. I sold a house for $4.5 million where the owners originally were asking $4.7 million. That’s a massive discount.
“But it started out that high because the owners said they wanted to give it a go, test the waters. There’s a million different scenarios for why people discount their properties.”
At Hope Island, where the average vendor discount is 10.3 per cent, agent Warren Hickey is selling a four-bedroom, two-bathroom contemporary home on Virginia Avenue, which is listed for offers over $995,000 and advertised as a huge price reduction.
However, he said the listing was not representative of the local market. The southeast Queensland suburbs where vendors are discounting their sale price by the largest percentages have been revealed.
“On average we’d sell a property a week in Hope Island. I would say if you look back at everything we’ve sold in the past few years, we’ve probably only advertised one as having a price reduction and this is it. It’s the exception,” he said.
On the Sunshine Coast, where Maroochydore recorded an average discount on houses of 7.5 per cent, local Century 21 agent Damien Said said a lot of the properties in higher demand were now auctioned.
| Sunshine Coast houses | Avg % discount |
|---|---|
| Maroochydore | 7.50% |
| Tewantin | 7.30% |
| Pelican Waters | 6.90% |
| Buderim | 6.90% |
| Noosaville | 6.80% |
| Bli Bli | 6.70% |
| Mountain Creek | 6.30% |
| Beerwah | 6.20% |
| Coolum Beach | 6.10% |
| Palmwoods | 5.90% |
Source: Domain Group. Note: average vendor discounting, six months to March 2019.
“That needs to be noted — those properties are automatically excluded from the data,” he said.
“If anyone in Maroochydore is discounting, I’d say it’s more of a reflection of a few properties that came on the market with unrealistic expectations.
“Generally, we’re finding that when properties do come on the market, as long as the price is realistic, our days on market are reducing. The coast market is still quite active.”
