Most difficult selling locations revealed
A previous investor hub in Queensland has become one of the hardest places in Australia to sell property.
The ‘Top Ten Most Discounted Properties Nationwide’ list by SQM Research revealed that it’s becoming increasingly difficult to sell properties in the Redland Bay region, half an hour south east of Brisbane.
Despite some suburbs in the region experiencing solid growth and increasing demand, two properties in the top 10 were from one area.
Topping the list was 4 Edgewater Place on Lamb Island, 15 minutes by ferry from the mainland.
The list revealed the property has been on the market for 1,267 days – almost three and a half years – and has currently been reduced by 41 per cent, down from $425,000 to $249,000.
According to HomeSales.com, the average listing duration for Lamb Island is 959 days, with an average vendor discount of 32 per cent.
Speaking with Smart Property Investment’s sister publication, Real Estate Business, general manager of Raine&Horne Bay Islands Trevor Ehrlich said the region previously attracted strong investor interest.
“But after the GFC, we saw all the investors try to sell off their property at one, which flooded the market,” he said.
“Another factor affecting the market is bank valuations. We’ve had cases with interest buyers who are happy to pay $220,000 for a home, but the banks value it at $190,000, so the properties just sit there.”
Despite the heavy discounting and extended sales period, Mr Ehrlich said things are slowly picking up.
“There’s definitely been more interest about the market lately, and I feel things are due for a turn around. It’s a great area, especially for retirees, and in the next few years I’m confident we’ll be back to normal growth,” he said.
A second property on Lamb Island also placed on the list, coming in at number four with a price reduction of 40 per cent.
The full list can be seen below.
|
Address |
State
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|
Suburb |
Initial price |
New price |
Reduced |
Days on market |
|
4 Edgewater Pl |
QLD |
Lamb Island |
$425,000 |
$249,000 |
41% |
1267 |
|
22 White Street |
QLD |
Bundamba |
$425,000 |
$250,000 |
41% |
539 |
|
11 Slip Rd |
TAS |
Triabunna |
$420,000 |
$249,000 |
41% |
1120 |
|
79 Perulpa Dve |
QLD |
Lamb Island |
$499,000 |
$298,000 |
40% |
1253 |
|
Lot 106 Starrs Gully Rd |
SA |
One Tree Hill |
$2,200,000 |
$1,390,000 |
37% |
734 |
|
3 Charlies Crossing Rd |
QLD |
Upper Coomera |
$550,000 |
$350,000 |
36% |
57 |
|
19 Yarawa Street |
QLD |
Kenmore |
$1,195,000 |
$789,000 |
34% |
280 |
|
116 Perseverance Rd |
SA |
Vista |
$565,000 |
$379,000 |
33% |
869 |
|
32 Virginia Court |
VIC |
Cranbourne |
$390,000 |
$265,000 |
32% |
210 |
|
21 Cotton Court |
SA |
Strathalbyn |
$498,000 |
$339,000 |
32% |
897 |
Source: SQM Research