The raw data don't lie, says Louis Christopher
SQM Research director Louis Christopher has released a different kind of top 10 most discounted properties list this week, focusing exclusively on the beleaguered state of Queensland. Christopher has included properties that are now selling for far less than their purchase price, reflecting the poor state of the Queensland market.
"I would not like to have been a first-home buyer purchasing on the Gold Coast in 2009," he says. "We would suggest most of these buyers are facing losses right now."
He points to RP Data results that show Brisbane actual prices (not asking prices) are down 7% year on year, and the situation is worse on the Gold Coast, where actual prices are down by 11%.
"It is indeed a basket-case situation, as we stated earlier this year," Christopher says.
Christopher also responded to comments made by property consultant Michael Matusik on Property Observer that "extremely few sellers are making an actual loss on their resale". Matusik also implied Christopher's top 10 discounted properties were outliers and did not reflect the actual state of the market.
Christopher responds: "This list is compiled based on truthful data. It would be untruthful for us to spin 10 properties that were in more commonly known areas just because they would be of better use to our consumers and brand them as the top 10 most discounted properties around the nation. Our list is a raw reflection of the data. It is not supposed to be a specific indication of the current market, even if it does from time to time reveal similar results to our forecasts.
"This point was made directly and privately to Michael Matusik many weeks ago, who, it seems, has decided he wants to get publicly personal with us. In any case, what this Queensland 'analyst' has failed to mention is that indeed, many high-quality properties close to the CBD do regularly make the list."
Christopher says the market is falling, and as his list this week shows, vendors are indeed taking real losses on sales in some parts of Queensland. He says the data speak for themselves.
"For a long time we've been sought by the media to a lessor or greater extent based on the notion that we are telling the truth, which we suppose must outrage most of those spruiker analysts, vying for some pro-property coverage. It must be disappointing for them that the Australian public is becoming increasingly uninterested in hearing a biased positive spin on a falling housing market."
1
Unit 1,35 Northcliffe Terrace, Surfers Paradise, Queensland, 4217
On the market since: December 26, 2009
Initial asking price: $4.95 million
Current asking price: $2.9 million
Reduction: 41%
Days on market: 539
Last sold for: $4.4 million
Date of last sale: May 5, 2007
2
40 Crest Haven, Lamb Island, Queensland, 4184
On the market since: February 6, 2010
Initial asking price: $250,000
Current asking price: $180,000
Reduction: 28%
Days on market: 497
Last sold for: $203,000
Date of last sale: November 21, 2006
3
57/71 Goodfellows Road, Kallangur, Queensland, 4503
On the market since: August 22, 2010
Initial asking price: $365,000
Current asking price: $279,000
Reduction: 24%
Days on market: 302
Last sold for: $352,500
Date of last sale: October 30, 2008
4
8 Ottiwell Street, Woorim, Queensland, 4507
On the market since: May 3, 2010
Initial asking price: $645,000
Current asking price: $495,000
Reduction: 23%
Days on market: 413
Last sold for: $537,500
Date of last sale: March 1, 2008
5
2/4 Hill Court, Labrador, Queensland, 4215
On the market since: July 17, 2010
Initial asking price: $369,000
Current asking price: $295,000
Reduction: 20%
Days on market: 336
Last sold for: $327,500
Date of last sale: January 18, 2008
6
23 Coronet Court, Burleigh Waters, Queensland, 4220
On the market since: June 5, 2010
Initial asking price: $649,000
Current asking price: $530,000
Reduction: 18%
Days on market: 378
Last sold for: $550,000
Date of last sale: July 14, 2007
7
Unit 43,113 Castle Hill Drive, Murrumba Downs, Queensland, 4503
On the market since: October 23, 2010
Initial asking price: $365000
Current asking price: $299,000
Reduction: 18%
Days on market: 238
Last sold for: $345,000
Date of last sale: November 30, 2007
8
20 Lothian Avenue, Sorrento, Queensland, 4217
On the market since: September 5, 2010
Initial asking price: $749,000
Current asking price: $615,000
Reduction: 18%
Days on market: 287
Last sold for: $685,000
Date of last sale: May 20, 2006
9
4 Tobruk Close, Caboolture South, Queensland, 4510
On the market since: October 9, 2010
Initial asking price: $420,000
Current asking price: $329,000
Reduction: 17%
Days on market: 252
Last sold for: $358,000
Date of last sale: November 22, 2007
10
14/2981 Surfers Paradise Boulevard, Surfers Paradise, Queenland, 4217
On the market since: October 31, 2010
Initial asking price: $419,000
Current asking price: $349,000
Reduction: 17%
Days on market: 329
Last sold for: $375,000
Date of last sale: January 25, 2007