Bitcoin property offerings fade as cryptocurrency plummets

Bitcoin property offerings fade as cryptocurrency plummets
Bitcoin property offerings fade as cryptocurrency plummets

Late last year it was all the rage to accept Bitcoin as a payment for your property.

A number of vendors, from all corners of the country, indicated they were happy to take the cryptocurrency, some as a part payment, some for the whole price.

But such offerings have waned as the hype disappeared.

The underperforming currency has dropped from its December 2017 peak of nearly $20,000 per Bitcoin to a low $8,400. Bitcoin had previously surged over 1000 percent in 12 months.

Now property is being marketed as a more stable investment than Bitcoin. 

Marketing for an apartment in Logan Central, south of Brisbane, suggests the $169,000 plus price is "better than bitcoin."

The two bedroom unit, which last traded for $140,000 in 2005, is currently tenanted at $250 a week, which would see an impressive eight percent rental yield if it sold at its advertised price. 

A Claremont, Tasmania home sold earlier this year with the agent suggesting that its seven percent rental yield on offer would an "investment as safe as houses, far more secure than Bitcoin."

The two bedroom home sold for $205,200, with a tenant secured at $265 a week until December 2018.

Last year there were four listings willing to accept bitcoin all within a short two week period spike.

First a house in Melbourne's outer east (below) was listed with the seller willing to accept part payment through Bitcoin.

Bitcoin property offerings fade as cryptocurrency plummets

Consumer Affairs Victoria said it was legal for the settlement amount to be paid in any asset or security agreed between the buyer and seller, including Bitcoin. 

The home at 1411 Mountain Highway in The Basin sold for $885,000 earlier this year, but no Bitcoin exchanged hands.

Next to hit the market a few days later was a historic property in Far North Queensland. The vendor was happy to take all of the $1.2 million asking price in Bitcoin, although it has not  sold. There is now now indication Bitcoin would be accepted.

Back then that was around 100 Bitcoin. Now it would be 142, or if the sales contract had ever been struck just in Bitcoin, rather than the property value, then it would represent a windfall purchase for the buyer.

There were further listings to come, Grandview, the Mount Macedon trophy, was for sale through Bitcoin, followed by a luxury Gold Coast home, a land parcel near Toowoomba and a Surfers Paradise apartment.

There's only been one listing this year, in Leura in the Blue Mountains west of Sydney.

A three bedroom home with a self-contained studio has been listed for $798,000, which nowadays equates to around 95 Bitcoin. 

The home last traded for $499,000 in 2014.

Yesterday the RBA announced it is closely monitoring the cryptocurrency, calling it a 'risky' investment. 

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Bitcoin Cryptocurrency

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