Brisbane buyers looking for a bargain may be disappointed, with new data revealing that sellers are discounting their houses by less now than they were before coronavirus restrictions hit.
Despite the impact of COVID-19 on the economy, the latest figures from Domain show that the rate that sellers are discounting their houses is slowing. In April, vendors cut their asking price by 5.62 per cent, whereas in March the discount was 5.71 per cent. In February, it was 5.81 per cent.
The discounting rate is the average difference between the asking price as listed on Domain and the eventual sold price, when it’s reported.
Discounting on Brisbane units, however, is on the rise. That figure increased from 5.87 per cent to 6.21 per cent between March and April.
On the Sunshine and Gold Coasts, the data showed sellers had cut more from their asking prices to get a sale.
Discounting rates for houses were 6.15 per cent on the Sunshine Coast and 6.65 per cent on the Gold Coast, both slightly up month-to-month.
The rate of discounting for units was rising on the Gold Coast but on the Sunshine Coast, the rate of discounting was just 5.17 per cent, the lowest across houses and units for all three south-east Queensland regions.
Domain data scientist Nicola Powell said the Gold and Sunshine Coasts’ dependence on tourism for their local economies, and their reliance on international and interstate buyers, made them more susceptible to price discounts during the coronavirus crisis.
“The coastal areas were outperforming Brisbane [in price growth], but I think that tide will change,” she said. “Because they’re so exposed to tourism and foreign buyers, the fact that’s now nonexistent will have an impact.
“Whether or not that will just mean a slowdown in growth, time will tell.”
On the Sunshine Coast, the loss of these buyers had hit the market, although there were still locals about.
The people who live out of state and overseas who would normally be our buyers can’t see the property.Although a lot of our buyers are in the state, and Queensland-based, 40 per cent would be overseas or interstate.
The situation was similar on the Gold Coast – a steady increase in sales over April, but not in listings.
We’ve had results that have been on par if not better than in March. There has been a massive reduction of new listings in the market.
There were a bunch of old listings that would have been overpriced six months ago that have been sold now.
In Brisbane, the situation had similarly recovered. Geoff Sellars said despite the initial waves of confusion in March, things had settled once mortgage holidays were confirmed, and Queensland had firmed up rules around private inspections.
“Anyone potentially under financial stress, they’re on hiatus for six months,” he said. “We won’t see distressed sales until when the mortgage holidays are over, but I don’t know if we’ll see that yet.
“There’s a much smaller number of reasons people would go to market.
“We’ve seen a lot of properties sell with multiple offers and good numbers through.”
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