Capital city asking price sales' success leaves the regions in the dust: Aussie

Sydney vendors have done very well over the past year with 59.4% of houses selling above their list price.

Sydney was followed by Melbourne where 50.4% of private treaty vendors faring above expectation.

The two cities were head and shoulders above the rest of Australia’s capitals and the regions, according to the Aussie/RP Data report.

It also found that in the year to 30 June, some 37% of Sydney houses sold for less than their initial list prices.  

Some 52.6% of capital city vendors accepted below list price, and then across Australia, the majority of vendors are selling for less with 63.4% of house sales falling short of their list price.

The Aussie executive chairman John Symond said the new report indicated that city markets were much stronger than regional areas.

"For those looking for capital growth, the theme clearly indicates that capital cities are the places to invest, while regional areas are more about lifestyle than returns”, Mr Symond suggested. 

The data was based on private treaty sales, listing the top suburbs securing sales above the list price, kicked off with a 100% success rate in Middle Cove on Sydney Harbour.

The report found that ­all 10 houses in Middle Cove sold at above list price, with Winston Hills in second place.

Winston Hills was ­especially impressive, and busy, with 96.6% of its 174 houses sold over the year fetching more than advertised, also selling quickly in around 25 days.

 The report also listed the suburbs securing sales at under the list price, kicked off by Emu Park in Queensland. 

"There’s still an opportunity for savvy home buyers to negotiate down in some areas," John Symond noted.

"Sellers and buyers should take list prices with a grain of salt as the results are working out to be quite different from original expectations,” Mr Symond said. 

Properties selling above list price are being snapped up quickly, with the top 10 suburbs average time on market for homes selling in just 38 days against 147 days for homes selling below list price.

"Buyers should be prepared to think quickly and act smart, and go into their property search with their mortgage pre-approval sorted.

"Knowledge of the market and a strong will not to stretch themselves beyond their means is also critical, especially if interest rates rise as they’re tipped to do in 2015,” Mr Symond concluded.

Click through to download the full Aussie/RP Data Property Discounting report.