Huge home discounts: Aus suburbs where you can bag a bargain

Savvy homebuyers are scoring big discounts across a number of Aussie suburbs where sellers are slashing asking prices by thousands of dollars to meet shifting market conditions.

New analysis from SuburbData has revealed the top locations for buyers looking to bag a property bargain with Melbourne providing the biggest vendor discounts, the data shows.

The Victorian capital currently has 17 markets where buyers could see price drops of over 10 per cent off the original asking price, compared to just eight locations in Sydney, three in Brisbane and one in Adelaide.

SuburbData analyst Jeremy Sheppard said suburbs with high rates of vendor discounting were usually “buyer’s markets” where home seekers were entering price negotiations from a stronger position.

“There is a correlation between higher discounts and softer demand,” he said.

“Whatever situation the market is in, whether it’s oversupply or some other factor, higher discounts reflect that buyers are in control and sellers have to take what is given to them.”

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Here’s how your state compares.

QUEENSLAND

Sellers across 20 Brisbane suburbs have been forced to cut prices by at least 5 per cent as rising stock levels and affordability pressures bite.

Fringe areas like Ipswich, Logan, and Moreton Bay topped the SuburbData list, recording discounts of up to 16.3 per cent.

Buyers in Banksia Beach and Wynnum West also secured discounts of about $100,000, or just under 10 per cent off the list price, while savings of 8 to 12.5 per cent were recorded in Eagleby, North Ipswich, Springfield, Wynnum (units), Woodridge, and Bellara, with discounts averaging $66,500 on homes priced between $660,000 to $823,500.

Read the full story here.

Trent and Samantha Smith were looking to buy in Logan, but ended up in a more affordable Ipswich home. Photo” Steve Pohlner

VICTORIA

In Melbourne, Mont Albert delivers the strongest discount across the city, with vendors typically selling homes for 18.8 per cent less than they had expected.

Point Cook, Collingwood, Lilydale and Altona round out the top five for biggest price reductions, with discounts varying between 13.8 per cent and 17.7 per cent.

Other areas where markdowns were more common included parts of the southeast and inner suburbs with older housing listing sor higher proportions of investor-owned properties.

Homes that required renovation or had been poorly maintained tended to sit longer on the market and sell at steeper discounts.

Read the full story here.

Mont Albert was once named one of Melbourne’s most liveable suburbs. Now, homes are being sold at a discount. Photo: Chris Groenhout

NEW SOUTH WALES

Home seekers across pockets of Sydney have been given a double dose of good fortune: their loan costs are getting cheaper as interest rates drop but they’re also scoring unthinkable price discounts.

Exclusive new analysis has revealed multiple city pockets where home buyers have been securing deals averaging 10 per cent below the list price, helping them save upwards of $100,000.

Most of the biggest discounts were secured on apartments across Sydney’s middle ring, according to the study by research group SuburbData.

There were also outer areas along prominent train lines where house discounting rates were high.

Suburbs with particularly high average vendor discounting on units were Merrylands West, near Parramatta, and Rosebery in Sydney’s south.

Merrylands West apartments were typically selling for about 15 per cent cheaper than the advertised price, while in Rosebery the average discount was 13 per cent.

Sydney-wide, the average discount on properties of all types, is about 1-2 per cent for private treaty sales, while the average price secured by auction was higher than the price guide.

Read the full story here.

1/14-16 Sherwood Road, Merrylands West recently sold for $395,000.

SOUTH AUSTRALIA

In SA, buyers are likely to score the biggest saving in Gulfview Heights with the average vendor discount sitting at 12.5 per cent.

It means the average house is likely to sell for $120,000 less than the original asking price, based on the median suburb price of $960.000.

Houses in Adelaide CBD are also selling, on average, for 8.2 per cent less the original asking price and 5.3 per cent in Modbury.

Potential savings can also be found in Largs North, Banksia Park and Woodside in the Adelaide Hills, where properties sell between 2.1 per cent and 4.9 per cent less the asking price.

Read the full story here.

It may be known for its big family homes and leafy setting. But homes in Gulfview Heights are selling at a discount.

NORTHERN TERRITORY

In the NT, the biggest winners would be mortgage holders in Fannie Bay, where the average cost of a house is sitting at $906,771.

A 25bp cut would mean a saving of $216 a month on the mortgage of a typical Fannie Bay house, while a 50bp drop would save $230 a month.

In Lyons, where the average cost of a house is $2.4m, a 25bp cut would mean a $109 monthly saving, while a 50bp cut would equate to $216 a month off the mortgage bill.

In Nightcliff, mortgage holders paying off an average house could expect to save $105 (25bp cut) and $209 (50bp cut) a month.

At the other end of the scale, a property owner paying off a unit in Bakewell, where the median price is $292,807 would see a monthly reduction of $37 based on a 25bp and $74 based on a 50bp reduction.

In regional NT, a 0.25 percentage point rate cut would mean a monthly saving of $53 for an owner paying off a typical house and $32 for a typical unit.

While a 0.5 percentage point cut would mean $105 a month of the mortgage of an average-priced house and $65 off an average-priced house.

Read the full story here.

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