PHOTO: More than 100 turned up for auction of top-end Melbourne house but not one bid.  Nick Lenaghan

Sellers slashing property prices are luring buyers back to the market but not in large enough numbers to arrest the overall decline, or spark a recovery, according to analysis by bankers, economists and brokers.

Mortgage brokers, buyers and real estate agents claim seller discounting, repricing and greater flexibility on sales terms is increasing buyer interest, particularly among first time property buyers.

Sydney and Melbourne are replacing Brisbane as the nation’s vendor discount capitals as annualised property prices slid more than 15 per cent during the three months to the end of February, according to analysis by CoreLogic and investment bank Morgan Stanley.

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