property prices

Where vendors are slashing property price expectations by six-figure sums

PHOTO: Sydney houses which sold after a price drop, were discounted by an average of 5.37 per cent over the past three months.

Price discounting on Sydney properties is back on the rise amid the coronavirus pandemic, new data shows, with vendors in some pockets slashing prices by six-figure sums to sell.

Sellers who lowered their price expectations to sell over the past three months gave an average discount of 5.37 per cent for houses and 5.81 per cent for units, Domain figures show.

That is a discount of about $62,765 on a house that hit the market at Sydney’s median of $1,168,806, or a price drop of about $43,265 on a median priced unit – at $744,672, according to the latest Domain House Price Report.

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Despite this, property in Sydney is not being discounted by as much as it was last year.

The discounting rate, the difference between the advertised asking price and the sold price, was still lower than it was this time last year, Domain senior research analyst Nicola Powell said.

It was also well below the peaks reached during the market downturn with the discount rate hitting 9.05 per cent for houses and 8.63 for units in early 2019.


DISCOUNT RATE FOR HOUSES
RegionApr-20Mar-20Apr-19
Blue Mountains6.32%6.15%7.83%
Canterbury Bankstown6.12%5.83%9.38%
Central Coast5.61%5.64%*
City and East6.92%7.99%11.26%
Inner West6.68%8.53%9.83%
Lower North Shore9.14%9.79%9.86%
North West5.74%6.01%9.74%
Northern Beaches7.97%9.32%9.57%
South5.91%6.10%10.03%
South West5.05%5.17%*
Upper North Shore7.17%8.33%11.12%
West5.17%5.40%*
Source: Domain. Note: Discount is the difference between the advertised asking price and the sold price. Discount rate is the average discount given over a rolling six-month period.

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