Queensland accounts for four of top five most discounted properties in Australia as vendors often misjudge the market: SQM
A heavy discount on a property’s price hopes can often mean its vendor misjudged the market when first putting it up for sale, says SQM Research.
On releasing its latest list of the top 10 most discounted properties in Australia, the research firm points out that the Queensland property at the top of the list has had its price hopes slashed by 42%.
The former number-one most discounted property, in Tasmania, is no longer on the discount list because its price hopes have risen.
Macleay Island now takes the top spot. Homes in Macleay Island have an average discount of 19%, according to RP Data.
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"Our number one property on this week's list – 92 Beelong Street, Macleay Island 4184 – was initially priced at $590,000, only to be still sitting on the market now at $340,000," SQM says.
"It is evident that there was a level of misjudgement concerning the market value of this home, but what is possibly the most tragic about this particular example is that this misjudgement stems back to the previous sale of the property, where it was in fact sold for $590,000 back in December 2007."
The property has been listed by the mortgagee in possession since November 2011.
"Yes, this is not necessarily your average home in an average location, however losing $250,000 in the space of four years is probably not what the vendors of this property had in mind when they originally bought it in 2007," SQM says.
1
92 Beelong Street, Macleay Island, Queensland, 4184
On the market since: May 23, 2010
Initial asking price: $590,000
Current asking price: $340,000
Reduction: 42%
Days on market: 615
2
102 Fountain Road, Burpengary, Queensland, 4505
On the market since: April 17, 2011
Initial asking price: $1.2 million
Current asking price: $699,000
Reduction: 42%
Days on market: 288
3
121 Treasure Island Avenue, Karragarra Island, Queensland, 4184 (pictured)
On the market since: October 23, 2010
Initial asking price: $335,000
Current asking price: $200,000
Reduction: 40%
Days on market: 462
4
27 Reeve Street, Campania, Tasmania, 7026
On the market since: June 14, 2010
Initial asking price: $330,000
Current asking price: $200,000
Reduction: 39%
Days on market: 596
5
329 Waterford Road, Ellen Grove, Queensland, 4078
On the market since: October 16, 2010
Initial asking price: $1,275,000
Current asking price: $800,000
Reduction: 37%
Days on market: 469
6
22 Fenton Avenue, Christies Beach, SA, 5165
On the market since: March 6, 2010
Initial asking price: $1,195,000
Current asking price: $750,000
Reduction: 37%
Days on market: 693
7
2/18 Campbell Crescent, Terrigal, NSW, 2260
On the market since: December 11, 2010
Initial asking price: $1.99 million
Current asking price: $1.25 million
Reduction: 37%
Days on market: 413
8
25 Vicary Street, Triabunna, Tasmania, 7190
On the market since: August 2, 2010
Initial asking price: $299,000
Current asking price: $189,000
Reduction: 37%
Days on market: 547
9
290 Viveash Road, Swan View, WA, 6056
On the market since: June 5, 2008
Initial asking price: $2.29 million
Current asking price: $1.45 million
Reduction: 37%
Days on market: 1,334
10
15 Gretel, Two Rocks, WA, 6037
On the market since: December 26, 2009
Initial asking price: $1.1 million
Current asking price: $699,000
Reduction: 36%
Days on market: 763
SQM Research also offers a list of the Top 100 Biggest Bargains in Australia for sale.