Residential slowdown results in vendor discounting
The recent slowdown in Australia’s residential property market could result in greater vendor discounting, RP Data has found.
According to RP Data’s research analyst Cameron Kusher, Brisbane recorded the greatest levels of discounting during April at -6.2 per cent.
Mr Kusher said this result goes hand in hand with the fact that Brisbane also recorded the greatest drop in house prices over the month.
Surprisingly however, in the unit market, Melbourne recorded the greatest level of vendor discounting in April despite the fact that unit values increased by 1.3 per cent over the month.
The result indicates that the market is not necessarily moving as quickly as vendors would anticipate.
“Vendors in this market may be setting unrealistic initial asking prices on these units. This is understandable trend given the rapid increase in Melbourne property values over the last year,” Mr Kusher said.
“As market dynamics change, generally we’ve noticed that vendors take some time to become aware of the change and the amount of vendor discounting tends to increase.”