Home Insights The sea- and tree-change hotspots selling at a discount

The sea- and tree-change hotspots selling at a discount

by admin
0 comment

Demand and limited supply for affordable lifestyle neighborhoods continue to push up local housing prices.

of PropTrack Australia Regional Report 2022an annual report analyzing regional real estate markets across the country was released this week.

Demand for rural real estate surged during the pandemic. Source: Getty Images.


The report explores slowing conditions in Australia’s regional property markets following a pandemic-induced “regional renaissance” that saw regional home prices rise at the fastest annual pace in 35 years. increase.

Click here to read the full report

Things are changing rapidly this year, with rising interest rates rebalancing the housing market from last year’s extreme growth.

In October 2021, when sellers dominated, only 29% of sales across Australia were priced below original list price.

However, as interest rates rose sharply and selling conditions softened, its share rose 20 percentage points to 49% in October 2022, the highest since October 2020.

TOP 10 REGIONS SA4 WITH THE MOST INCREASED DISCOUNTS

Share of properties sold below list price in October 2022

The SA4 shown is defined by the ABS standard. Vendor discount represents the percentage of properties listed on realestate.com.au that are sold below list price. Source: PropTrack.
SA4 state Percentage of sales below list on Oct 21 Percentage of sales below list on Oct 22 YoY (ppt)
Southern Highlands and Shoalhaven New South Wales 21.57 72.65 51.08
sunshine coast queensland 17.11 62.93 45.82
Illawarra New South Wales 19.91 61.46 41.55
mid north coast New South Wales 23.94 63.14 39.2
Coffs Harbor – Grafton New South Wales 34.62 70 35.38
Ballarat Big 17.07 51.72 34.65
Geelong Big 10.1 44.15 34.05
Capital Area New South Wales 29.53 62.63 33.1
gold coast queensland 26.88 59.71 32.83
Latrobe – Gippsland Big 39.34 72 32.66

The shift reflects a shift in conditions over the past year, with vendors slowly resetting their price expectations after months of price declines, while nationally the price increases seen in 2018/19 remains below the level.

TOP 10 REGIONS SA4 WITH HIGHEST SHARE OF SALES BELOW LIST PRICE

Share of properties sold below list price in October 2022

The SA4 shown is defined by the ABS standard. Vendor discount represents the percentage of properties listed on realestate.com.au that are sold below list price. Source: PropTrack
SA4 state Percentage of sales below list on Oct 21 Percentage of sales below list on Oct 22 YoY (ppt)
Western Australia – Outback (South) Wa 82.35 80.89 -1.46
Northern Territory – Outback NT 69.49 76.6 7.11
Southern Highlands and Shoalhaven New South Wales 21.57 72.65 51.08
Queensland – Outback queensland 82.05 72.41 -9.64
McKay – Isaac – Whitsundays queensland 69.76 72.11 2.35
Warrnambool and Southwest Big 40.91 72.07 31.16
Latrobe – Gippsland Big 39.34 72 32.66
Western Australia – Outback (North) Wa 53.62 71.43 17.81
Coffs Harbor – Grafton New South Wales 34.62 70 35.38
Darling Downs – Maranoa queensland 71.19 68.7 -2.49

For buyers, increased vendors’ willingness to discount may make it easier to enter the market.

The percentage of sales below list price increased most in Southern Highlands and Shoalhaven, where 73% of sales in October 2022 were sold at:

This is up 51% from a 22% share in October 2021. Sunshine Coast saw his 63% of its October sales below list price, up 46% in the last 12 months.

Vendors are most likely to offer discounts in the WA and Northern Territory outback regions, followed by the Southern Highlands and Shoalhaven.

63% of Sunshine Coast sales were below list price in October. Source: Getty Images.


Again, unsurprisingly, the fastest-discounting regions are the higher-value lifestyle regions, where home prices skyrocketed during the pandemic and are currently declining the fastest.

Vendors will have to reset their price expectations in these regions as home price growth reversed in recent months as buyer demand fell.

Where are buyers still paying the premium?

Rural SA, South East Queensland and Rural NSW’s relatively affordable SA4 continues to see price increases of nearly 20% in some areas over the past year.

Buyers in southeast Tasmania (67%) and Toowoomba, Queensland (60%) were most likely to pay a higher premium than listed, with 3% of the property in the 12 months to October 2022. of which nearly 2 have sold above their list price.

In south-east Tasmania, nearly two-thirds of properties have sold above list price in the last 12 months. Source: Getty Images.


Areas where home prices are rising to new price peaks are also areas where a higher share of sales is exceeding list prices. This makes sense, as options are limited and buyer demand remains strong, vendors are adjusting to market trends in these areas.

Top 10 Regions with Highest Share of Sales Above List Price SA4

Percentage of homes sold above list price in October 2022

The SA4 shown is defined by the ABS standard. Vendor discount represents the percentage of properties listed on realestate.com.au that are sold below list price. Source: PropTrack.
SA4 state Sales share (%) for the above list on October 21 Sales share (%) for the above list on October 22nd YoY (ppt)
southeast TAS 87.3 67.44 -19.86
Toowoomba queensland 60 60 0
Launceston and the Northeast TAS 80.08 51.72 -28.36
west and northwest TAS 65.65 40 -25.65
Bunbury Wa 42.16 39.39 -2.77
wide bay queensland 42.86 36 -6.86
cairns queensland 36.67 35.71 -0.96
Barossa – York – Mid North SA 18.18 34.62 16.44
Townsville queensland 28.47 31.15 2.68
Western Australia – Wheat Belt Wa 28.85 30.54 1.69

Click here to read the full report

You may also like